I planned to install a power inverter in my apartment in December 2023. When I made enquiries in mid-December, I received a quote that was slightly higher than my budget. As a result, I decided to postpone the installation until January and add some funds from my January salary to cover the difference. However, when I received a quote in January 2024, I was shocked to find out that the cost had increased by almost 20%. I felt frustrated and wished I had not postponed the installation. I hadn’t considered the fact that the Naira was rapidly depreciating, which led to an increase in cost.
In retrospect, I could have explored other options such as asking for a payment plan or sourcing funds from elsewhere where I could pay back the exact Naira amount that was the difference. Unfortunately, I now have to pay extra coins, and I cannot afford to postpone it again as the price is likely to increase further.
I’m sure many Nigerians can relate to my experience. The rising commodity prices are changing every second. The fear of missing out (FOMO) has taken on a new meaning, as a delay in locking down a price can result in a significant price increase within just a few days. We are literally in the you snooze, you lose era. I find myself constantly recalculating my costs, as there is always a wide disparity between my budget and the actual prices. All commodity prices have changed since my last purchase, which is the price I typically use for budgeting. This God-abeg point has taught me a lot.
Do what you have to do quickly
As the words of the nursery rhyme say, do not defer till tomorrow what you need to buy today. You will likely pay a greater premium for it. In the same vein, evaluate what you want and what is important. If something is not important, use the money to get what you need. Now is most likely not the time to satisfy cravings.
Buy bulk where possible
Consider buying food and other frequently used items in bulk. This will help you save money and time as you won’t have to shop as often. You can also team up with others to buy in bulk and split the cost. Wholesale prices are generally cheaper than retail prices. This principle also applies to items beyond consumables. For example, if you have a friend or neighbour who also wants to install an inverter, you could negotiate for a reduced rate by buying together. Another helpful hack is to buy items and have them shipped to either of your homes, then exchange the items when you visit each other. For instance, if I need one piece of something, and my sister needs two, we can buy three and have them shipped to her place. I pick up mine on my next visit. These times call for creative and out-of-the-box thinking.
Cut your coat according to your fabric and the skill of the tailor
Not according to your size and not above the skill of your tailor, so it doesn’t end in premium tears. It’s important to live within your means and not overspend on things that are beyond your budget or skill level. Avoid trying to impress others by living a lifestyle that you cannot afford, and don’t take on debt unnecessarily. The current economic situation in Nigeria is difficult, but it’s important to remember that the rest of the world is also facing challenges. It’s crucial to cut out all unnecessary expenses and avoid lifestyle inflation, which can lead to debt. Remember, the Joneses are just as broke as everyone else.
Buy now, pay later
This is a tip that requires careful use, to avoid falling into debilitating debt. It is also solely recommended for assets. Where financing is possible at favourable terms, BNPL (I just have to give it an acronym) is a great way to finance assets. You however must be certain of all the terms of the loan – interest, duration, currency and others.
Skill up and add value
Organisations are equally feeling the pinch of this economy, if not more. We are beginning to see some restructuring; layoffs and some outright market exits. This isn’t the time to be complacent about your career or skill, the popular parlance says, when the going gets tough, the tough get going! Skilling up is one way to toughen up. Add value to yourself and your organisation. Proper application of your skills will position you as a resource of value and will help to ensure you can quickly transition to another opportunity in the event of a downsizing or to ensure job security.
You can also develop skills to earn additional income or save some income from tasks you would have outsourced. You can learn to style your wig yourself and learn to cut hair and you and a friend can trade services. Make that delicious moi moi that’s your guilty pleasure and costs you a few thousand every week. The point is to increase your income and/or optimise your cost.
Prioritise health and wellness
This is the worst time to fall ill if there is a good time to be ill. There’s barely enough to feed to even give to hospitals. There isn’t a better time than now to be intentional about your health. As much as it lies within your power, avoid anything that may be a contributory factor to ill health. Eat and rest well, and avoid stressful situations. We hope to be alright.
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