Everyone will agree with us that the last three months have been nothing but challenging. It’s been from one annoying problem to the other. And when I say problems, it is not the village people kind of problem ooo, but the economic situation our beloved Nigeria is currently going through. To add salt to the injury, Inflation has worsened matters for the average Nigerian. Foodstuff prices have skyrocketed, and fuel prices keep increasing daily, making transportation annoyingly expensive. The only advantage is less traffic, and one can get around quickly. The dollar rate is increasing every day. Many people’s mental health has been tested, but now it is confirmed: Nigerians are strong and can survive anything – pandemic, CBN wahala, so what is now common Sapa that we won’t survive. However, this cannot be the status quo!
In light of our conversation about Inflation, here are our top three tips that many of our TRIBe members apply to help them thrive during this Sapa period.
- Shine your eyes. (tracking your expenses)
- Be streetwise (Save and invest)
- Be prudent (Budget your expenses)
Shine your eyes. (tracking your expenses)
Tracking your expenses allows you to clearly understand where your money is going. Especially during inflation, recording and categorising your expenses will help you identify areas where you might be overspending or where you can cut back. This awareness enables you to make informed decisions about your spending habits and allocate your resources more efficiently. Understanding of price changes and other things can help make informed financial decisions. There are several Fintech tools to help you track finances.
Be streetwise (Save and invest)
Saving and investing are crucial strategies for combating Inflation. By saving a portion of your income regularly, you build a financial cushion to help you weather inflationary periods. There are so many deals out there now. So this is the time to find ways to pay less. With the savings you create, gradually explore the potential of earning a side income. But before you invest in any idea, remember that planning is crucial. Read our blog on 5 businesses to start with less than 100K in Nigeria. Plan for it!
Be prudent (Manage your cashflow)
Cash flow is the relationship between the actual cash that comes in (income) and that which goes out (expenses). “Money not in hand is not in hand” that is the mantra with cash flow. This is a fundamental tool to help you understand and manage your finances. Creating a cash flow for your personal life should be something other than rocket science or treated as only a financial expert’s business. No, it is time for you to own your life, so you have to engage in shaping it. Start by listing the necessities you must pay for, like rent, feeding, etc. List your possible incomes, separating the ones that come regularly and those that fluctuate. Work around adapting the expenses to match the regular income. This will help you manage your cash flow so that you do not have to get loans and pay huge amounts of interest.
Adapting and surviving in this period requires discipline, planning and a proactive approach. Though we know it may take time to adjust to these tips, implementing them will not only help but will go a long way in mitigating the impact on your financial well-being. Let us know if you have questions or further tips you can apply during these high inflation periods.
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We hope you got value out of this blog article. It is time to own your life. We created our Tribe platform to empower African students and Savvy entrepreneurs looking to start a business. Get the TRIBE app (Android version) here. For IOS users, a web app is available here at https://tribe.joadre.com. Sign up for our newsletter here to get consistent resources via email. If you want to contact us, use our contact form or consult us through the app.
Thank you for reading to the end.
Cheers
Joadre
