Studies show that Nigeria’s inflation rate rose to ~19%in June, the highest we’ve experienced in more than five years. Experts foresaw this. They warned us that 2022 would be challenging. And they were right.
Where do we begin? Is it the monthly increase in the prices of food stuff, or the cost of transportation, power, diesel, petrol, or the naira-dollar/pounds/euros exchange rate? It’s a lot. And the worst part is, salaries aren’t increasing.
Couple of months ago, we were singing Nimix and Philipiano’s “sapa, sapa no fit catch me…” but now, everyone can feel the heat, sadly!
One might argue that we are at the brink of falling into stagflation, but we the hopefuls believe that it cannot be that bad. Or is it? What can you do to prepare for the worst-case scenario? What is in your control?
Thankfully, our experts are still in the business of helping you achieve financial well-being. So, if you’re one of those who didn’t take heed to our piece last year, not to worry. We’ve put together three quick ideas to optimize your expenses on household items in the remainder of 2022.
Forward buying is one smart way to survive Nigeria’s increasing inflation. Forward buying is when you invest in securities or commodities that you foresee would likely rise in prices due to increased demand for, or limited supply of them. This allows you to lock up the commodity or security at a lower price now, and then sell when the price rises.
The concept of forward buying can also be applied to food, household items, and utility bills. Given how quickly commodity and food prices are rising, there may be opportunities for you to bulk-buy essential, non-perishable items (such as food items and cooking gas) and utility services such as electricity. This approach may enable you to save on these bills. You could also access bulk discounts.
Bulk-buying may be difficult if you do not have access to significant amounts of cash. In this case, you may want to join forces with friends and family so you can at least get the bulk discounts. With Vested, you can pay utility bills and can conveniently organize payments with friends and family, with whom you intend to bulk-buy.
2. Stay at home
Yes, you read right! 😄It’s not only “cold outside” like Timaya said, it’s expensive outside. Staying at home helps you cut down on expenses. If it’s not necessary for you to leave home, then don’t! Those little expenses on VAT from eat-outs, cost of commuting, etc., do add up. Indeed, it’s the little things that count!
If you love to be around friends, then you can entertain them at home and encourage friends to come with drinks and food items. After all, it is the company that counts 😊.
If you prefer the vibe outside, then do one cheap and cheerful thing to make your home more comfortable. Throw on a fresh lick of paint, get a portable mini cooling unit. If you can afford to invest in some small home comforts, they will pay off in the long run.
3. Share expenses
Sharing is caring. You can share expenses with people who have the same financial goals as you. Split the bills on house rent, car maintenance, groceries, utility, etc. You can do this conveniently with Vested Family and Joint Banking.
Tough times don’t last but tough people who take the right steps do. What are the right steps? Listening to experts, watching the trends, building your financial knowledge, and making decisions based on these. Surviving this Sapa unscathed is possible, let’s help you get through it.