In this article, PRINCESS ETUK outlines financial management strategies that could help you survive during economic downturns
Despite not being in a state of recession, Nigeria is currently facing difficult economic challenges. The weakening of the naira, coupled with a high inflation rate, has made it tough for many Nigerians to make ends meet. Food prices have skyrocketed due to insecurity in the country’s food belts, which has prevented farmers from going to their farms. As a result, many Nigerians are struggling to afford basic necessities and cope with the current hardship.
We shall be considering some strategies that will help cope and overcome economic hardship:
Emergency funds
In today’s unpredictable world, the importance of emergency funds cannot be overemphasised. Financial emergencies can happen to anyone at any time, and without a safety net in place, these unforeseen expenses can quickly spiral into financial chaos. That is why it is crucial to prioritise building an emergency fund as a cornerstone of your financial strategy.
The first step to begin creating your emergency fund is your budget. Instead of viewing budgeting as a constraint, see it as a tool for understanding your spending habits and making informed financial choices. Think of it like a seatbelt, not handcuffs.
Begin by analysing your monthly income and expenses to determine an amount you can conveniently save monthly. Identify areas where you can reduce unnecessary spending to allocate more funds to your emergency fund. By living within your means and adhering to a budget, you can gradually build your emergency fund.
