It is no news that world economies, especially nations that are highly dependent on oil revenue are suffering. It is even clearer in Africa where economic ministers are coming out to admit that countries are in recession even if the minister of economy in Nigeria, Mrs. Kemi Adeosun claims it is “technical”.
Recession takes a heavy toll on personal finances and families need to adjust to the harsh economic realities. Times like this require good financial management not just to survive but also to ensure that you are not heavily hit by the effects of an economic recession.
One of the major characteristics of economic recession is that money loses value. It gets even worse as jobs are threatened with organizations trying to cut cost and sometimes having to reduce their workforce.
Nobody wants an economic recession but since it’s just a phase in the economic cycle, we all have to deal with it and below are some financial tips to help you get through such times.
Track your Expenses
In times like this, it is normal to almost always check your account statement to look for any irregular bank charges. Unfortunately, in this part of the world, we are not really bothered when we see inexplicable bank charges below #1,000 on our account. If you think it is small, imagine the bank charging this small amount on their over ten million customers for example.
The most important task under tracking your expenses is to ensure that you prioritize your expenses and work according to your scale of preference. It is also imperative that you get serios about having a budget and even more importantly, following it through.
Whether you are taking a loan from a bank or you getting it from your loved one, it is important to avoid borrowing money as much as possible. During inflation, borrowers gain and of course, after this economic phase is over, lenders smile. The idea here is that the #5,000 you borrow during economic recession and inflation can buy fewer things as compared to after recession or in a better economic situation.
Multiple Income Streams
You can never have enough of income streams. Imagine having two to different jobs or streams of income other than you 8 to 5, to help cater to your expenses especially with the rising costs of things and the uncertainty surrounding white-collar jobs. The income from these sources do not have to be necessary huge especially at the start. You can subsequently grow them as time goes on and trust me; these sources of income will be more appreciated after the recession is over.
Personally, I have about three streams of income. Though I don’t make millions from them, I can afford to pay my bills and still sort out some other stuffs on the side. Fiverr, MMM, and Click Intensity are the income sources helping the guy out the moment and I hope to improve on them real soon.
A popular wealthy guy once said, “do not look to cut down on your expenses instead, increase your income sources”. The recession is real and we all have to deal with it. I hope my tips will help you survive this season and make the best out of it.
By the way, I will try to post something on my income sources mentioned above. However, you can contact me on whatsapp/call – +2348088884801 for more information on any of them and I will be happy to help.