General Elections to elect a new Nigerian President, Federal and State Legislators, and Governors were conducted in February and March 2023. Rewind to the start of 2022 – a pre-election year – some Nigerians nursed hopes that the government would increase its efforts to reduce poverty and unemployment, and improve the deteriorating economic environment. With dashed hopes, Nigerians watched as the country’s population growth continued to outpace it’s efforts towards poverty and unemployment reduction.
Nigeria is heavily dependent on oil for exports and revenues. Efforts to diversify foreign exchange sources, close the infrastructure gap, build strong and effective institutions, as well as address governance issues and strengthen public financial management systems, seem not to have availed much. Nigeria continues to face development challenges.
Nigeria’s economic challenges have led to higher prices, lower wages, and a decrease in the standard of living of the average Nigerian. The current state of the economy limits the government’s ability to invest in education, healthcare, and infrastructure. It is essential for you to be aware of the state of the economy to seek out ways to thrive despite these challenges. For example, following historical inflation trends, you can make postulations that everything you buy today may cost 2.5 times more in 10 years, and you might be right.
The keys to thriving in this economy can range from planning ahead, to building, managing, and securing your wealth. You can start by doing the following.
Where you keep your money can have a significant impact on how much that money is worth over time. You can build your sleep-well and fall-back money – emergency funds – in savings accounts that earn interest, so your money gradually increases over time. It can be an effective way to combat inflation.
You will be even more effective with saving when you can track every spend. Check that you are not paying for a streaming service you don’t watch/listen to, going out to eat more than you cook at home, paying for a gym membership that hasn’t been used in more than a few months, etc. Trimming these sorts of unwarranted spending can reduce strain on your budget.
Tracking your spending will enable you notice gaps in your spending and help you live within your means. If you make it a habit to live within your means during the good times, you are less likely to go into debt when food prices or other living expenses go up. Experts suggest that if you have a spouse and are a two-income family, try living off of only one spouse’s income. In good times, this tactic will allow you to save incredible amounts of money. In bad times, e.g., if one spouse gets laid off, you will be fine because you will already be used to living on one income.
That extra income that you are able to save can be put into investments.
Increase your active and passive income at a rate greater than inflation to outpace it. Add to your full-time job an extra source of income on the side. Consider consulting, affiliate marketing, content creation. Diversifying your streams of income is as important as diversifying your investments.
The economy may be at a deplorable state and clad with challenges. However, you can thrive despite these challenges by following the steps above.
Do not just live, thrive!