In recent years, Nigeria and the rest of the world have been grappling with high inflation rates that have reached as high as 21.5% as of November 2022 in Nigeria (www.cbn.gov.ng). This has had a devastating impact on the Nigerian economy and the everyday citizens who are trying to make ends meet.
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. High inflation means that the cost of living is increasing at a faster rate, making it harder for people to afford necessities such as food, housing, and healthcare.
One possible way to combat inflation is to increase wages, but when it’s not forthcoming, follow these suggestions to manage the impacts;
Save Money on Transportation
If the ever-increasing fuel prices in Nigeria are blowing up your budget, your first course of action could be limiting your driving as much as possible. Running errands in batches, carpooling or using public transportation, or walking anywhere within a short distance can also save you substantial money at the end of the month.
Buy Your Food in Bulk
A typical Nigerian spends up to half of his/her income on food, so lots of money can be saved if you can cut expenses in this regard. Make sure you pay attention to the prices of goods and choose the family-size package if it is cheaper per unit.
For example, church members and staff of organizations can pool their funds together towards making a bulk purchase. Afterwards, the food will be divided according to the contributions made.
Eat Out Less
Studies have shown that it is cheaper to prepare your meal at home than to eat outside. The amount spent on eating a meal in a standard restaurant will be enough to prepare quality 3 square meals at home. Take a break from takeaway and restaurant meals and you will be surprised at how much you will be able to save in a month.
Negotiate Lower Prices
You can reduce everyday expenses by negotiating over the price of goods or services until a mutually agreed-upon price has been determined. Getting goods and services at lower rates each time will have an impact on the general monthly expenses.
Postpone Non-Immediate Needs
Not everything will always be more expensive. Some price hikes could be temporary, and, in that case, it may pay to hold out as the price might go down later. Purchases that are not immediately necessary can be deferred and you might be able to get a better deal at a later date.
Earn Money on Your Savings
When inflation happens, there is a fall in the value of money generally because of a sudden increase in the price of commodities. Putting your money in a high-interest yield savings account where it will earn higher interest can reduce the eroding effects of inflation.
At Advans La Fayette Microfinance Bank, we boast of short and long-term Savings accounts with high-interest rates. With our competitive interest rates, you can watch your savings grow faster than ever before. Our account offers low minimum deposit requirements, easy online access with our Mobile App (Adspire) and effective customer support. Plus, with NDIC insurance, you can rest assured that your money is safe and secure. Don't wait any longer, open a savings account with us today and start earning more on your money!"
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