See the 10 Ways to Survive Economic Recession without Stress. Learn the most effective ways to manage yourself and family through the heat of economic recession.
‘Economic recession’ is the last two words that come up to mind when many enjoy the benefits of a booming economy. Rather than a hard hit, recession usually surfaces as a gradual grip on the economy of a country.
More recent in our time, ‘recession’ has become a household name as many household and business enterprises face economic hardship and restraints around the globe. Of course, Nigeria is not exempted; as she occupies the news spotlight since the fall in price of crude oil.
Associated with recession is the trend of inflation, lay-offs from work, job scarcity, strikes, and increase in cost of food, travel and other daily expenses.
Read Also: 10 Ways to Reduce Unemployment in Nigeria
Increased medical bills drive many to depend on road-side chemist, orthodox and self-treatment in order to cut down cost on hospital bills.
Additionally, family responsibilities of caring for aged parents and other dependents related to you can become more and more overwhelming, when you are no longer able to manage their needs within the limit of your income.
What about the down-ends of recession when you are unprepared for it? Health problems begin to emerge; mental and emotional distress would lead to insomnia. Some who are unable to cope with the unexpected turn of events adopt desperate measures, and even tempted to engage in sharp practices to make ends meet.
Or more so, some allow themselves to be clouded with hopelessness and lack of zest to live. What choice will you make? How can you find your balance in the grip of a receding economy? Familiarize yourself with the effective ways to ‘keep your head up’ as listed in this article.
1. Be self-determined
Self- determination is a choice and a key quality that would sustain your overall being from the knocks and punches of economic hardships that comes with recession. What kind of self-determination is needed? That which requires the mental disposition that reaches absolute conclusion, and that possesses a decision of character and resoluteness to survive the high tides of hardship and economic difficulty.
This valuable quality provides us the needed strength to remain calm in the face of continuous disappointments. Self- determination is a quality that can be successfully cultivated when we surround ourselves with positive and real minded persons who are also determined to succeed in the right way.
2. Rework your budget
Reworking your budget to reduce expenses may be boring at times, but the benefit it brings makes the effort worthwhile. What is required? Simply reviewing your budget and looking for additional ways to keep your expenses within the limit of your income while keeping in mind the recent changes in the cost of living.
You may have to start out by drafting your own form, setting realistic figures for necessary expenses and sticking to your plan.
A great deal of discipline and self-control is needed. Never fail to record your expenses for each month and weigh it against your income. This would tell you how successful you are in keeping your budget and how you can re-budget more successfully.
Therefore, before you buy any item, consider whether it is already in your personal budget. If not, you may ask yourself: ‘is this item really necessary?’, ‘can I do without it?’, ‘would it offset the balance of what I have already budgeted for the month?’
Additionally, take the time to scout for items on sale or good second-hand items. Avoid becoming an impulsive buyer by always sleep over the matter if an item at first glance seems compulsory that you must buy.
3. Build your savings
Savings can provide the cushion effect for unemployment or economic recession_ the period in which pressure in personal and family finances increases. The advantage in savings is that you can’t afford to be broke. Savings can create opportunities even to receive loans.
Additionally, it is better enhanced if one has a regular income from investments no matter how little it may be. Therefore, always ensure to include savings as your expenses on your personal budget each month.
4. Avoid debts
Living on debts is like being chased by a running train. Debts can cause sleepless nights. The worst is borrowing so much money and at the end being unable to pay back. How could one avoid being entangled in the web of debts? The key lies in developing effective debt management.
This involves an individual having a strong ability to resist debt. Therefore, it is not out of place to say ‘No!’ and mean it. Additionally, one needs to cultivate self-control to resist the impulse to buy or invest on deals that are of uncertainty. Savings and good investments along with good planning are antidotes for debts.
5. Develop entrepreneurial skills
Your entrepreneurial skills are obviously your empowerment and survival skills. These skills may include additional skills to your main skills obtained from your secular studies. They could be quite handy on rainy days, especially, when downsizing is common.
Upon deciding on which skills to develop, scan through your neighbourhood and discern areas of need that could yield income. The needs could vary from delivering services to trading on items that are not easily accessible within your locality.
Don’t fail to go online in search of ideas that are applicable to your locality. Online resources such as Infoguide Nigeria enriches you with up to date information on what businesses are applicable and sustainable within Nigeria. Don’t limit yourself.
6. Think financial investment-wise
Money is an immediate necessity in times of economic recession, however, a wise and sustainable financial investments holds one of the keys to successfully manage through the heat of recession. The aim in a good financial investment is to make your money work for you.
Learning from those who have attained success in this area can provide insight on what you require. Because fraudsters are on the increase to make gains from other peoples losses, you need to analyse, be cautious and carefully examine any investment opportunities that are available.
Your investment could also be the business you run from little activities that are part of daily chores for people around you. Small profitable businesses can cave way to investment opportunities. So don’t hesitate to try one.
7. Learn the art of negotiation
To be a successful shopper in Nigeria while coping with recession, you must learn the art of negotiation. It usually involves reaching an agreement on a favourable price of an item between the buyer and seller. However, there are a few things you must know in negotiating e.g. the right language to use and the general psychic of the sellers.
Additionally, you must know the value of the items you intend to buy. Some sellers would charge exorbitantly for second-hand items as though they were unused items. You need to be smart and observant. To ease your negotiation skills, you must also know when to buy items in the market.
For example, sellers may be less flexible with their market price on a Saturday than ordinary working days; expecting that they would have more customers to buy from them on that day. Also, it is necessary to avoid buying during festive days when prices of good are usually high.
8. Associate wisely
The saying that ‘no man is an island’ applies very well to circumstances involving economic difficulty. True, at times, going through financial challenges may cause one to retrieve to one’s shell for fear of embarrassment and could test your self-esteem. But doing so would not necessarily be the wise step to take.
On the other hand, one may choose to widen out more, perhaps for the hope of increasing opportunities. But remember too: so many friends and associates on the list than you can possibly count increases the peer pressure to keep up with them, even when you are facing different financial circumstances with them. This can be stressful at times. What balance could be maintained?
While auditing your list of associates, you may really want to maintain as associates, those who encourage you to save, who are financially wise and experienced in investment. The advantage is that it helps you remain focus while maintaining a profile you can afford within your limits until you kick up high again financially.
9. Minimise your excesses
Indulging in habits that encourage unnecessary spending can lead one to being broke with money. Such habits include excessive alcohol consumption, regularly eating out, smoking, staying up-to-date with the latest gadgets and fashion trends etc.
Cutting down on these excesses would go a long way to help you save money for rainy days, investments or channel your funds to more productive activities to ease your financial challenges.
10. Apply the principle of Goodwill and Kindness
The stress of economic hardship as a result of recession can have strong influence in plunging one to wrong practices and harsh disposition towards people. Nevertheless, Goodwill and kindness are sister-qualities that are intangible assets during such times of difficulty.
They are important because they represent your integrity and ethics with which you deal with people and handle your business.
The truth is that people are more likely to treat you the way you treat them. Just as the saying holds: ‘No man is an island’, to that end, you cannot only rely on your own efforts to cope with economic difficulties. You need people to build your own success and they in turn need you.
The principle of goodwill and kindness should apply to both your personal and business relationships. Such positive qualities help promote and maintain a positive outlook, good health, build good rapport with people, attract investors to your business, sustain your business, open-up opportunities, keep you from depression etc.
Additionally, it would guide you from feeling resentment over other people’s success, opportunities, possessions etc. Therefore, avoid negative energy that can sap us off the strength to cope with economic recession.
Can you survive through economic recession?
The answer is an audible ‘Yes!’ only if you act wisely by following the above mentioned suggestions. Granted, no single way works wonders over night; rather aim to adopt all suggestions as mentioned.
In the long run, you may discover other ways in additional to the various ways discussed. Nevertheless, be self-determined, consistent, optimistic and apply practical wisdom then success would be yours!
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