Do you find it hard to keep up with your needs this period? Do you have a well-paying job but still live from hand to mouth? Then this might just be a must read for you.
It is no longer news that the economic situation in Nigeria is facing a downward spiral. Salaries are no longer a saving grace for many as a result of the hike in the price of goods.
However, regardless of this economic downturn, you can still be financially stable. This takes a need to pause and make certain financial decisions to live above poverty in this period since the situation is not getting any better.
In this article, we will be sharing some insights on how to live above poverty even in the midst of this financial crisis.
1. Avoid overspending
There is this popular saying that says “cut your coat according to your size” but in this present situation, you would have to cut it according to your material. As a salary earner, you are quite aware of your monthly pay, so you shouldn’t make expenditure above your pay. You need to live within your means
Financial discipline is very important. You are overspending if you are earning 30,000 naira per month and you keep on buying designer wears at every opportunity. Be reasonable with your spending and buy only important things.
2. Plan ahead
Making financial decisions without a plan would only put you in a financial crisis. A financial plan will always guide your decisions on how to carry out your expenses and manage your resources.
3. Set your priorities right
Economists suggest a scale of preference that places our needs in order of importance to help us make great financial decisions. This will help you attend to needs that demand urgent attention and pend other needs that are unnecessary. With this, you wouldn’t have to spend more than you envisage and also have leftovers in your pocket before the next pay.
Imbibing a saving culture is a lifesaver in this present downturn. Have a fixed amount of money go into your savings account daily, weekly, or monthly depending on your pay.
For traders, a daily or weekly thrift is recommended so you don’t have access to the money.
5. Avoid debts
Try as much as possible to be debt free. Debts would only keep you glued to a particular spot and stop you from making progressive financial decisions. How do you avoid debts? By not borrowing to finance a lifestyle. If you earn 30,000 per month, keep your monthly budget within that figure. This will help you curtail excess spending that would exhaust your monthly pay even before the month ends. If you borrowed money to buy clothes and shoes, you would only keep on digging your roots in poverty.
If you have debts currently, make a list from the smallest to the largest. Then set a goal on how to pay up and follow it strictly.
6. Seek out other streams of income
To live above poverty, you need to have other streams of income. Living on just one income can be so dangerous. This is like putting all your eggs in a basket. Having several sources of income gives you a financial shield from any economic storm. There are several businesses you can venture into with little or no capital that would add more money to your pocket.
7. Be financially educated
Financial literacy is one of the ways to be financially stable in this present downturn. You need to be conversant with your finances. Seek knowledge intentionally. This would help you make sound financial decisions to achieve your financial goals. Investments need great financial wisdom.
8. Have an emergency fund
This cannot be overemphasized. An emergency fund is like a financial backup incase of unexpected happenings. Having an emergency fund saves you from borrowing if there is no extra need for that.
9. Avoid assumptions
A lot of people make financial decisions on vain promises. Your, uncle or friend promises to give you 10,000 at the end of the month, so you go ahead to borrow 10,000 from your neighbour, hoping to pay back once your friend sends the money. This would only put you in serious financial trouble because your friend might have a change of mind and either send nothing or something lower than what you expected. You shouldn’t base your financial decisions on assumptions.
10. Diversify your income
To be financially free, you need to be aware that all your income is not meant to be spent. No matter how little you earn, it is important that you invest a part of your income. Some investments might not yield returns immediately, but they are also a way of saving up for your future.
Spread your investments across all areas and you will be amazed at how financially free you will be sooner or later.
ALSO READ FROM NIGERIAN TRIBUNE