Adedokun Muhammad A.

It is no more news that prices of commodities have surged, and the quality of products have drastically reduced.  As a result, the money used to buy hundreds of a particular commodity is no more sufficient to purchase half of it. With this, it is important to know how to navigate the turbulent water of economic downturn  and “maintain your steeze”, despite the high cost of commodities.

Prices of goods and services have witnessed a persistent sharp increase with a grim reality whether there is going to be a corresponding fall, moving forward. From the surging price of food items to the escalating price of essential commodities, the situation has limited the purchasing power of  Nigerian citizens and cut down the ability to save part of their income for the “rainy season”.

According to the National Bureau of Statistics, inflation rose to 28.92%, as of December 2023. Not only that, the continuous fluctuations in the forex market, the free fall of Naira in the parallel market, persistent increase in the price of fuel pump price, and unceasing insecurity in the country have all contributed to the ailing state of the economy.

This article will provide you with some tips to cope with the current condition of erratic inflation as you read further.

Below are some tips to help you in coping “with a maximum composure”:

1. Budgeting:

The concept of budgeting refers to the process of creating a plan for how to allocate and manage financial resources over a specific period of time. In fact, effective budgeting is a crucial component of sound financial management and can contribute to long-term financial stability and prosperity. In present time, one should cut one’s coat according to the size of the cloth, rather  than according to one’s size.

Here are some of the guides that’ll help you in making an effective budget:

•Track your current spending to understand if your expenditure is not more than your revenue.

•Setting financial goals by identifying what you need to cater for as soon as possible and what can still be postponed till other time.

•Monitoring the effectiveness of the system adopted and adjusting (if need be), to ensure the budget remains aligned with financial goals and priorities.

2 . Prioritizing needs vs wants:

The high price of commodities does not give room to buy all what you desire with the little you have, that is why it is very important to distinguish your needs from your wants. Needs are basically essential things that you cannot do without, while wants are what you desire to have but without them you can survive. Having a scale of preference is a vital step.

The scale of preference refers to the ranking or ordering of an individual’s wants and needs, from the most important to the least important. It will enable you to carefully evaluate your expenses and focus on purchasing essential items first, and also enable you in limiting discretionary spending on non-essential items and luxuries.

3. Saving and investing:

Saving is the amount of money that is set aside for future goals, emergencies, or long-term investments. Set some amount of money aside for future goals, emergencies e.t.c. that will enable you to cope even if inflation occurs. Investing will also help you in gaining continuous benefits from the profit of what you invested on. This will help you in managing unexpected expenses that your basic income may not be able to cater for.

4. Explore Alternative Sources:

The price of some commodities is high, but there are a lot of alternatives that can also give you the same benefits the former will give with cheap price. Try to go for those that align with your income. But be mindful of the quality of the alternative while applying this method. Try to go for the next best alternative available.

Following the above tips and some other useful strategies will promote your financial awareness and discipline and also help you to identify and reduce unnecessary spending, thereby facilitating the achievement of your financial goals.