Ways to survive in Nigeria during Recession

 

During a recession, it can be extremely difficult to manage your resources. You may lose your job or face other financial hurdles that might cause budgetary constraints. However, despite the setbacks associated with a recession, it is still possible to maintain a budget, pay down debts, and save some money. By managing your money wisely, cutting expense, and finding extra sources of income, you should be able to navigate the tricky waters of a recession and keep your finances afloat. these tips outlined below will help you survive recession. Nigeria , once the largest economy in Africa plunged into recession after  a fall in its GDP in two successive quarters.

1. Track your income and expenses. It is important to get a solid understanding of how much money you have and how much you are spending. This will come in handy when you put together a budget. It will also help you avoid any nasty surprises like overdrafts or identity theft. ^[1]

   • Try creating a spreadsheet in Microsoft Excel and enter your income and spending history.
   • Look at your bank and credit card statements each month to make sure you have enough money.
2. 
   
   Create a budget and stick to it. Calculate how much money you spend in month and what your expenses are. Try to limit your living expenses to less than 50% of your income. This includes rent, utilities, and groceries. The remaining income should go towards your savings, paying down debts, and discretionary spending. ^[2]

   • Sticking to a budget can be tight when your income is tight. Prioritize your needs and find a solution that works best for you.
3. 
   
   Pay down your debt. Although it may be difficult when money is tight, paying off your debts will eventually free up some extra money. Interest and late fees can build up and take an increasingly larger portion of your income. If money is tight, pay small incremental amounts towards your debt. However, if you have a little more income, try paying off larger chunks.^[3]

   • Try reducing your interest rate. Some credit card companies may work with you to get you a lower interest rate.
4. 
   
   Save some money. Because a recession can cause significant economy instability, it is important to save up some money. You may lose your job, face a pay cut, or find external sources of income limited because of the recession. Therefore, it is necessary to have some resources available to get you through these tough times. Ideally, you would have been saving money all along. However, it is better to start late than never.^[4]

   • Open a savings account and try to put 20% of your monthly income into it.
5. 
   
   Be patient. A recession may not be the best time to begin a new expensive project. Home renovations or a big vacation may have to wait until the economy has recovered a bit and you have a more stable income. Remember that recessions do not last forever and a recovery is around the corner.^[5]

   • If you have the resources, a recession may be a good time for certain expenses because interest rates will likely be lower. Remember, car and home loans may have friendlier rates during a recession.