We live in a time where the purchasing power of the Naira keeps sinking. While some may argue that the policy of the Nigerian government is affecting the economy adversely or whether or not there is inflation in the country. The citizens of this Nation are taking the biggest blow. It will be wise to acknowledge that the events of the past months will continue into the future. Prices will continue to soar as exchange rates continue to fall. We are in a difficult time and here are four advice on how to survive these periods.
1- ACCEPT AND PREPARE
For you to recognize that there is inflation is a step in the right direction. Living with the hope that things will return to normal will only result to disappointments. The earlier you prepare yourself physically and mentally, the better your chances of survival. When you wake in the morning knowing that what was worth N100 yesterday is now N150. You begin the day with a better spirit and vigor than those who lack this knowledge.
2- EVOLVE AND ADAPT
During inflation, your money loses value. You become at risk of starvation, subsequently it affects your standard of living negatively. It is time for you to adapt. Anytime you want to spend, ask yourself if you really need what you are spending on. You must forego the necessary things for the important ones. For instance, buy non perishable goods, use public transport, and buy for long-term gain items like cereals, powders, packaged goods and even bread. There are a lot of things you can buy to save money. The idea is not to live cheap, but to live smartly.
3- GET RID OF CASH (INVEST)
When money keeps losing its value everyday, then why keep it? Since there is no foreseeable end to this financial crisis, the best option is to turn your money (cash) into commodity or asset. Everything will increase in price, therefore the logic behind this is that if you have a Hundred Thousand Naira. You should use it to buy assets or commodities, this will give you control over your wealth and probably make profits. Cash is a dangerous thing to hold in times like this. It is ideal to invest in something that generates cash flow or something that will at the very least bring back your money when sold.
4- REDUCE YOUR DEBTS
It is easier to get into debt than to get out. The problem of being in debt is that you become a slave to your creditors. Your financial health becomes at risk. You must understand that debt is the first step to financial collapse whether as an individual or organization. When there is economic hard times like this, people who are in debt are the first to go down. So, if you can pay off any debt you may have, it will go a long way towards improving your financial situation. By reducing the amount of expenses you have to cover you will be better prepared to handle a financial loss. And if you are lucky, you won’t have to worry about people knocking on your door. You only have to concentrate on improving your living standard.
Watch out for the second part on how to profit from inflation. Please live your comments and share with your friends and loved ones.