1. Save more. Adopt the principle of savings first before spending. This is a great way to creat wealth. Agree with your bank to deduct a certain amount from your earnings and put it in an account that you do not have any withdrawal instrument for (ATM card, Cheque book or withdrawal booklet).
2. Build up an emergency savings fund. You want to be sure to have money set aside for a rainy-day. funds that you can get to immediately, without paying a penalty. Your bank savings account or money market investment can come in handy here. Try to build up an emergency savings fund that can take care of at least your three months expenses..
3. Spend less. it’s hard yes, but it’s one of the best approach to helping you budget better during recession. Most people love buying things and find it difficult to break habits, like weekly restaurant spendings or shopping spree at supermarkets. There are many other ways you can trim your spending. Not sure how? Write down everything you spend each day, for a week. Then total up the categories (food, clothes, entertainment, transportation, etc.) and see how you can squeeze 5 or 10 percent out of those totals.
4. Pay down debt. In a recession, you really need to make every kobo work for you. And using your hard-earned cash to pay 26 percent interest on loans is not wise. So the more you can reduce your debt now, the better shape you will be if the tough time lingers Whenever possible, try to pay off your debt in full each month. Certainly, work hard to pay more than the rentals..
5. Polish your résumé. Hard economic times mean more layoffs. So update your résumé now, to be sure it’s current in case you need to apply for a new job. Try to contain the résumé to one page and avoid making it flashy or frilly. You want your work experience to stand out, not the document describing it.
6. Take on side business. During recession you need to be sure to increase your economic power as much as you can. Look around you there must be something someone or many people needs that you can help them get and they will be greatfull to pay a premium on it. Arrange lunch for your colleagues to be delivered in the office and let the catering service give you yours for free.
“Help as many people get what they want and you will get all you want” Zig Zigla
7. Sort your need from wants. Many people are victims of not understanding this simple economic classification. Needs are what you need to survive while wants are simply what you desire. In the period of recession you will have to do away with desires and face your needs only. Stop ice cream or soft drink after lunch, buying every Aso Ebi on display. Expensive club outings on Fridays. You can have your life back after recession is over.
8. Defer large purchase. Cut buying in bulk to last for several months, prices of goods are always high during recession and recession does not last forever. Reduce the full bag of rice to half or even quarter, buy 2 tins of beverage instead of 12 that will last for several months. Delay or postpone the annual vacation till when things improve. Refurbish your old car instead of buying a new one,
Source: www.nigerianbanker.com