The trend in Nigeria’s economy towards the presidential election season has always been that the economy will take a downward turn. Such tends to make the poor vulnerable and politicians use this to prey on the poor by providing them food items to solicit votes. This is also known in Nigeria as “Stomach infrastructure”.
‘Stomach infrastructure’ is a reality projected by Nigerian politicians on the vulnerable electorate who, because of their poverty, are encouraged to mortgage their fundamental right of freedom to choose who governs them in exchange for immediate gratification. As injudicious as this may sound, it sometimes leads the whole country into a deep recession.
I will like to share simple ways you can best survive the current economic situation. I call them “Survival Tips”
It’s easy to live through the good times, but how do you come out of the tough times unhurt? By preparing adequately, cutting costs, and making sure you still have some income coming in, you can emerge out of a recession just as strong as you were before it.
Reassess your finances
This is the best time to check your spending habits and see if your budget is working for you. Re-evaluating your goals, your income, expenses, and even your savings is important when you are trying to understand how to live through a recession.
Learn a new skill
After covid, a lot of skills have become redundant, and as such many are struggling to make ends meet and some have been laid off as well. As bad as this may sound, this is a good time and opportunity to think creatively about different ways to apply your skill, develop a new skill, learn a new skill, and stay relevant. The tech and programming skills tend to be sought after and more opportunities are arising. The agric world is also a space to look at and get onboard.
It is time to turn your hobby into a viable business
What are the things you love to do without getting paid? The things you can do effortlessly. Do you like to cook? Do you like to talk? Can you write? Many people now cook for others who are too busy to cook and they get paid for doing it. Others now work as ghostwriters. Some women have started home daycare just because they like to take care of babies and they are getting paid.
You can advise people who need it. (that is how consultants started).
You can go back to school
You can decide to earn another degree. More than ever before, online courses are on the increase these days. Since most of us are working from home these days, you can enroll in classes online from the comfort of your home. The knowledge you acquire can make you more marketable in the marketplace.
Stop borrowing
During a recession, people tend to borrow a lot. Some borrow knowing that they will never pay, and some borrow but due to the volatility of the economy, bad occurrences may happen that may cause them not to be able to pay back. Whatever the case may be, you need to stop borrowing money during a recession. The more debt you get into, the more depressed you become. Eliminate all kinds of debt as much as you can. If this seems to be an impossible task for you, then try and cut back on what you need those funds for. Reconsider your lifestyle.
Sell the things you no longer need
This is one tip that may sound un-African. We always tend to keep the things we don’t need and keep buying more. The world has changed and people can now sell off the things they no longer need to get cash. Use the platforms you have to your advantage, people sell off their used clothes, used gadgets, furniture, electronics, and other things gathering dust and taking up space in your house and office. The great thing about the internet is that there are many places to sell your items online, like Facebook, Twitter, Jiji, and others. It’s worth a shot to get some money in to help pay your bills.
Create an additional stream of income.
The popular saying that everyone should have at least three streams of income cannot be over-emphasized. Creating other streams of income does not necessarily mean you need to start three different businesses; it can be three different streams of income from one business. For instance, if you own a hairdressing salon; where you make women’s hair, you can also offer other services like manicure, pedicure, spa treatment, and sell hair and fashion accessories within the same business. If you own a school, you can also offer other services like after school, TUC shops, School buses for picking and dropping off, and a whole lot more. An online business is also recommended for those who have a paying job currently. By all legal means, make sure you have an additional source of income.
Diversify your investment.
During a recession, stock prices will usually fall and this may affect some shares you currently hold in your portfolio. This is a good time to reduce the risk of this happening to you by spreading out your investments. There will also be opportunities to buy debt issuance funds during a recession. Many companies will offer bonds with fixed income and dividends-paying funds.
Build up emergency funds.
These are funds you can rely on when you are in an emergency. These are not funds that you just cash into because you want to pay for something and the money is not enough. That is not the kind of an emergency I am talking about here.
Emergency funds here should be life-threatening situations. Anything outside this, you should not touch these funds. They will be useful when it is needed.
Learn to accept difficult times as a change for your resilience and adaptability.
Feel free to share with me other recession tips you know
IN CASE YOU MISSED THESE FROM NIGERIAN TRIBUNE
- ‘Officials initially offered to help but when the number of able-bodied citizens at the centre increased, they left us unattended to’
- Why Ogun Tops List Of ‘Yahoo Boys’ In Nigeria ― Governor Abiodun
- Police, Amotekun after criminals on Lagos-Ibadan expressway
- Suspected cannibal pays N500,000 for boy’s human organs, says ‘that’s my favourite meal, especially the throat’
- Court awards Nnamdi Kanu N1 billion over invasion of his home by military, asks FG to apologise
and then