Financial wisdom in difficult Economic times… Part 1

With the current economic crunch hammering on a lot of individuals and the current hike in food prices, pay cuts, loss of Jobs, as well as the current inflation rise to 13.7%, the big question is:
What becomes the hope of the common man?
Just a while ago, Shell and Chevron threatened to cut down their workforce by 23,500!
Now that’s scary, right?
It is in a time like this that the popular song, ‘’which way Nigeria,’’, begins to hang on the lips of most Nigerians.
That’s why there’s no better time to learn how to handle your household finances than now, because money is failing and the value of currency is depreciating rapidly and you just got to arm yourself now.
It is time to live a frugal lifestyle.
A frugal lifestyle isn’t about living as cheaply as you can.
Rather, it’s about making mindful choices that allow you to save money wisely so that you can live a debt free life and enjoy the small – and big – things in life.
Now, for the next 2 days, I want to share with you 7 out of 15 critical steps you can take right away to make the most of your finances in this period especially household finance:
So are you ready for this?
Leggo!
1. Adjust your Lifestyle.

Downsizing and learning how to live frugally can be a great growth strategy, because if you can learn to make do with less, you’ll increase your savings and you won’t find yourself struggling to adapt to a new lifestyle.

Spend within your means. Cut your coat according to your material not your size. The worst thing to do at this period is to get into debt because of unchecked lifestyle.

Live within your means.
Tips:
• Reduce buying brand names and switch to buy functional items.
• Strategically reduce your phone and entertainment expenses.
• Shop according to your income; don’t impress anyone and end up broke in the process.
• Have a critical evaluation of your rent. Is it according to your budget? Are you spending above 35% of your annual income on rent? Then you better watch it!

2. Schedule all your purchases:

Scheduling and planning your purchases help you buy things you actually need not things you want. It helps to eliminate impulse buying, which consume 25-45% of your income and throw you into debt.
Tips:
• Schedule for monthly purchases so you can take advantage of discounts sales if any.
• Have your living expenses income in some form of investment vehicle to reduce accessibility
• For every discount, kindly save and invest the difference.

3. Implement the Ultimate ‘’B’’ word.

You must budget both your income and expenses.

If you must survive this difficult time and still invest, you need to discipline yourself and your entire household (if any) to have and stick to the budget. Effective budgeting helps in the allocation and evaluation of financial resources.

Always remember that it is not more money that curb desires but financial discipline.
I will like you to think through these 3 items and let me know your thoughts in the comment section below.
I will be back next time. But until then, stay financially fit!

Cornel Agwu
Financial Fitness Expert

#FinancialFitnessSeries

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