Over the past few weeks I have had to advice and counsel a number people on personal finance issues relative to the financial turbulence within the Nigerian environment. I had to explain that it is not just a Nigerian thing, but worldwide as a result of Inflation rate been is on the high side and Cost of living which is also on the increase.
Let me refresh our memory: What is Inflation? This is an economical term defined as ‘The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.’ It is obvious that the inflation rate in Nigeria is in the state of comatose.
Let us quickly define the other concept: What is cost of Living? ‘Price of goods and services required for sustaining or maintain an average level of standard of living. This cost varies from place to place and from time to time.’
But I will relate more to the Nigeria environment. The inflation rate in Nigeria as at May 2015 9%, this is not the highest in the history of Nigeria as we had a record high rate of 47.56% in January 1996, however it is high at 9%, this figure is published by the National Bureau of Statistics, Nigeria (http://www.nigerianstat.gov.ng/).
Now let us bring it home in plain language. Here in Nigeria we have States owing salaries, lingering high price of petroleum products and subsequent hick in price of commodities. And also not forgetting that the Naira had being devalued twice and with the possibility of further devaluation. The rate of loans have also increased in recent times for both business and personal loans, the end result of this situation is the transference of the cost to final consumers, and the beauty of it is nobody is left out. The man who sold petrol at a high price will buy tomatoes at a high price and the woman who sold tomatoes at a high price will pay high school fee and the chain goes on and on.
These situations make disposable income lower and we are left with lower purchasing power. How do I mean; you can confirm from women that buys from the market, the prices and quantity of condiments like pepper, tomatoes etc. had gone up, transport fares is on the increase or fluctuating in relation to the availability of petroleum products like Petrol and Diesel. In recent times we bought fuel as high as 300 Naira per liter on the average and were happy to get it, forgetting the fact that the excess of 87 Naira (213 Naira per liter) would have met other financial needs.

Let us look at possible and interim solutions to the situation so as to have an edge and not plunge into indebtedness as this is always the situation in times like this.

Adjustment of Life style: There’s a need to adjust one’s life style in order to be able to cope with the financial times we are in. You either reduce your expense or reduce your savings, but as a Personal finance coach, I will advise you reduce your expenses. Cut down on the luxuries, focus more on the basic needs, which are food, shelter and clothing. Reduce your cable TV subscription, reduce the mobile phone recharge, and data usage. Many more things can be cut down on, just look within you and make the needed adjustment.
Learn to say No: Some of us have found ourselves in financial trouble because we cannot say NO, saying NO will not kill you, I want to say this is time to say NO to some irrelevant purchase and impromptu buying, before you make that next purchase justify it well, reduce your purchase of Aso- ebi and the likes. Think before you buy things.
Buy cheaper alternatives: Understand this is a passing phase and it is going to be over soon, so buy quality cheaper alternatives, except the product does not have alternative, compare and contrast before you purchase, most times, Big brands product are almost the same quality as other thriving brands. You can more at home rather than bukka. It is cheaper, take food to work. Remember it is all about your finances and not show man-ship.
Compare and Contrast prices: If you shop online the next available shop is a click away, and if you are in the market the next seller is just beside you and you need to learn the skills of bargaining and negotiations. Make it a principle do not buy anything until you have priced it well in several places.
Make bulk purchases: For the things you need time and time again, making bulk purchase from wholesalers is key. Example, for your kids buy their biscuits, drinks, milk in carton, by this you have saved a lot if compared with buying in pieces.

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Good job OP. dis wil help many ppl overcome dis finincial quagmire.