ISEGHE AJAYI
The present economy is truly hostile and survival especially for the common folk appears to be very challenging owing to the unrelenting rise in the cost of living. The unfavourable situation has seen several businesses going under due to the depreciating value of the Naira especially when compared with foreign currencies, making continuity almost impossible since most of them import raw materials from foreign countries.
With so much hardship in the land, relying on a single source of income is not sustainable particularly if your monthly take-home is epileptic and nothing to write home about. Besides, the never-ending inflation has continued to have a negative multiplier effect on the standard of living of the masses.
The persistent hike in prices of commodities has influenced the purchasing power of the masses adversely, making them apprehensive of their financial future and survival.
The best way to survive in a hostile environment like ours is to defeat inflation and enhance your financial horizon by investing appropriately. Do you know that with self-determination and having a positive mindset by not giving up on yourself, you can survive in any unfavorable economy?
So, there is no need to fret about your survival but work on your mindset to achieve financial freedom despite the terrible state of the economy because there are still some individuals out there making financial waves in doing what excite them.
It is quite true that the present state of the economy is tough and survival can be very taxing but what you do when the situation turns out to be very appalling, goes a long way to either affect your financial life positively or negatively.
The under-listed tips can help you remain afloat in a hostile economy:
Stick To Your Spending Plan
It is vital to have a budget during recession as it would guide you and help you to know how your money is spent and disbursed. More so, a budget needs to be created for food, beverages, recharge cards, clothes, accommodation, etc.
Creating a budget is not the issue but sticking to it is the main issue as this has made several people to live above their earnings. But sticking to your monthly budget enables you to avoid impulse buying because certain amount of money has been fixed for items needed at the end of the month.
Set Your Priorities Right
Impulse buying simply means buying things; you have no prior intention of buying. However, in a situation, where the state of the economy becomes so frustrating, you need to set your priorities right by avoiding impulse buying.
The best way to go about this is to have a list of the items you need before going for shopping as this would guide you on what to purchase and what not to go for so that you can curb your excesses by carrying an amount of money that is close to your budgeted list.
Be Prudent
For you to survive in an economy that is in a dire situation, you must try as much as possible to discipline yourself especially in the area of saving. No matter what you earn, you must ensure that you dedicate a certain percentage to normal saving as well as an emergency fund that you can fall back on in case of sudden events such as loss of job.
Avoid Thoughtless Buying
Most people spend a fortune on going out, watching movies at cinemas, hanging out with friends and buying thoughtlessly. Avoid friends that only drag you out to spend lavishly by learning to say no to them. If you can find ways to reduce the way you go out, you will be saving yourself a great deal of money.
Invest Your Money Wisely
This is one of the hardest things to do. There will be times where the economy will be nice to you and where you have a little extra to spend. Maybe you got an increase in your salary or you got your bonus at the end of the year. Instead of spending it on things that you do not need, you can rather spend it on things that can bring you more income.
Let Money Work For You
Make your money work for you by investing in shares and bonds. For instance, it is much better to take a loan to start your own business than to buy a new car.
Avoid Business In Foreign Currencies
It is good not to delve into businesses that involve foreign currencies especially if you do not have much capital. It is most preferable to engage in business that is done with our local currency, grow and expand it.
Delving into business with foreign currencies could be frustrating particularly if there is a fall in foreign exchange rate after your purchases. Also, low patronage because of the exorbitant price attach to foreign product can put you into financial dilemma.
Identify Cheaper Substitute
To prune your expenses, you need to identify substitutes to items you regularly use in your home or business that are cheaper. Furthermore, you must make sure the substitutes you identified do not have adverse effect on its future use. For example, when you identify a less expensive material for your production and you discover it has a negative effect on the output in terms of quality, you need to hunt for a better one that would suit your product so that your sales will not nosedive.
Identify Necessities
In an economic downturn, the only way to ensure that you and your business survive is to identify items that are of great significance. Besides, you need to expand your business as the economic situations change. In fact, the best way for your business to survive in a harsh economic environment is to make sure, you are into items that are of utmost importance to consumers because anything other than that would have an adverse effect on patronage and eventually lead to marginal or no profit.
Reduce Operational Costs
Another way to ensure your business survives in a harsh economic environment is to look at areas in your operations where you can reduce cost without your action not having a negative effect on the outputs produced. You can reduce your operational cost by cutting down your workforce as this would go a long way in ensuring your business survives the harsh economy.
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