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10 Ways To Beat The High Cost Of Living In Nigeria
As the cost of living continues to worsen in Nigeria, many individuals and families struggle with the challenge of managing their finances amidst increasing expenses, From soaring food prices to rising utility bills, the household burden seems to grow heavier each day.
As the cost of living continues to worsen in Nigeria, many individuals and families struggle with the challenge of managing their finances amidst increasing expenses, From soaring food prices to rising utility bills, the household burden seems to grow heavier each day. According to the National Bureau of Statistics, Nigeria’s headline inflation surged 22.41 percent in May 2023 from 22.22 percent in April, a new 17-year high.
A breakdown of an online report reflects household expenses are worse hit by inflation, with food & non-alcoholic beverages contributing most to the acceleration in the headline inflation followed by housing water, electricity gas & other fuel, clothing & footwear, and transport. The recent naira devaluation and fuel subsidy removal by the new government further exacerbate Nigerian’s living conditions and analysts see a further acceleration in the country’s headline inflation in June. This article contains ways to beat the high cost of living in Nigeria.
1. Automate Your Savings
Automated transfers from your checking account to your savings account create consistency and discipline. It eliminates the desire to spend money impulsively and guarantees you constantly save, encouraging discipline and financial responsibility, at a time when it is fast becoming impossible to save. and this is one of the ways to beat the high cost of living in Nigeria, especially as a Nigerian.
This cannot be overemphasized however, How else would you be able to plan for future events? By not saving, you would be putting undue pressure on your earnings at a later date when several pressing matters arise, and you would have to bear them in addition to your normal expenses. You may have to go borrowing then – something that many people find most unpleasant. And if you decide to borrow from a lending agency, you will have to pay interest. All this can be avoided if you simply learn how to put money aside for later use
4. Shop with a plan
This is another way to beat the high cost of living in Nigeria as a Nigerian is to plan before shopping, Plan your meals for the week ahead, and make careful note of what ingredients you need to prepare those dishes. Once the list is made, purchase only the items on the list and avoid impulse buys.
Most people ignore this step and are naturally set up for failure. Determine how much you can spend on groceries each month, get that amount out in cash, stick it in an envelope, and once it’s gone…it’s gone. This method helps to prevent unwanted spending.
5. Practice Minimalism
Minimalism – Many people are not fond of the word, nor do they fully understand it. Some think it’s the equivalent of living a life of lack or denial of enjoyment, but nothing could be further from the truth.Minimalism is simply the careful elimination of things we can do without. It’s about being intentional about the way you acquire material possessions.
It goes beyond being frugal and saving more as a result. Rather, the “disciplined pursuit of less” makes your life easier, gets you more organized, gives you more peace of mind, and ultimately makes you happier. You no longer have to bear huge maintenance costs and the like, and clutter won’t ever be a problem for you.
6. The freezer is your friend
You can effectively utilize your freezer to cut costs, reduce food waste, and have a convenient supply of meals and ingredients on hand. when fruits and vegetables are in season or on sale, take advantage of the lower prices by buying in bulk. Wash and chop them before freezing.
Many freezers have separate compartments or drawers. Utilize them effectively, Use the sections strategically to organize your items., For example, dedicate one drawer to meats, another to fruits and vegetables, and another to prepared meals. This organization makes it easier to locate specific items and keeps your freezer tidy.
7. Don’t Put All the Load on One Pocket
Apart from your primary source of income, you should have other ways to earn more money. This is no time to say that you are not an entrepreneur. Desperate times call for desperate measures. Hustle by all means. Whether it’s to apply for a higher paying job, ask for a raise, start learning a new skill to boost your income, or wisely invest the little money you can spare, you name it. You shouldn’t depend entirely on one income stream. Spread your branches.
8. Evaluate Your Financial Standing
This might sound pretty obvious. But still, it is better said than ignored. You already know how much you earn and how you usually spend it. However, to better understand your financial standing, you should use the “Worst case scenario” model to figure out what your life would be like if certain realities were to come into play.
For instance, “How would things go if this month’s salary doesn’t enter?” “What would happen if my landlord decides to increase the house rent?” “How will I manage, assuming I get laid off?
9. Invest In Ward Against Future Inflation
Make plans to invest and start investing, Let your money make you money. You don’t have to create all your wealth from the sweat of your brows. However, you should consider carefully what you want to invest in. While we are on the subject of wise investments, see that you don’t fall victim to scams and get-rich-quick schemes.
However, Before you put down any seed, make sure that you’ve thoroughly considered the venture and determined that it has a strong rooting, Don’t leave a large fraction of your money in the bank for long, especially when it doesn’t receive an attractive interest rate. If you are not ready to put the money to work, then hedge it against value loss. This is another way to beat the high cost of living in Nigeria.
10. Get Rid of Your Money Pits
You might have certain habits or propensities that attract considerable non-recoupable costs. Those are your money pits. By shedding them, your finances will be better for it. You might be someone who takes sudden flights of fancy and ends up splurging. Or perhaps you’ve acquired properties you deem assets, but which are draining the life out of you.
It could also be that you tend to eat out a lot, or that going shopping is your idea of stress release. Whatever your money pits may be, start letting go of them.
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