You people heard that Agege bread in my area has gone from N100 to N250 but you’re surprised that I’m calling an emergency neighborhood meeting on my employer’s website to rant, discuss and look for a solution that will benefit our finances in these trying times? Stop oh, no try me!
Even though it has been 2 solid years since the onset of the pandemic, we can still see its distasteful claws at the necks of not only Nigeria but the global economy as a whole. Are we going to start asking questions or we should just move with the groove?
According to a published article from statista.com, Nigeria’s inflation rate was projected to reach 16 percent in 2021. In January 2021, the inflation rate in urban areas of Nigeria grew by 17 percent compared to the previous months, while the rural inflation rate experienced an increase of 15.9 percent.
In January 2022 however, Nigeria’s annual inflation rate was at 15.60 percent. Compared to the previous year (month even) there has been a slight deceleration in prices of major components like food (17.37% in December 2021 vs 17.13% in January 2022). Meanwhile, the inflation was higher for almost all other categories like agricultural produce, fuel, Primarily clothing & footwear; Transport; Furnishings; Miscellaneous goods & services and alcoholic beverages & tobacco, etc.
By these metrics released by the National Bureau of Statistics, e be like say Nigeria’s inflation rate don dey drop but it might appear as though the numbers are not a true reflection of the market reality as food prices and the cost of services are still surging across the country. But before you ask me “wetin dey sup”, go and ask Mummy Bukky for the price of beans and garri.
Now that we’ve sorted out the facts and numbers, I know that things may be looking scary for your finances right now. So let’s quickly run through 3 ways to keep your head afloat in spite of this inflation.
3 financial hacks to surviving inflation
- Invest your savings: One thing I noticed just as the price of food, energy, and housing has been rising for the past couple of months is that my money isn’t safe in that orange savings account. Inflation is particularly difficult for savers because of the low-interest-rate environment but thankfully, we’ve got i-invest and their juicy interest rates come to the rescue.
- Shift your spending: Omo managing your finances as an adult can be filled with gbas gbos oh but try and spend less if you can. Say NO to those unnecessary birthday dinners, asoebi, impulsive shopping, gift buying, group vacations, etc. if they are too expensive. When necessities begin to cost more, discretionary spending should be reevaluated so as to not neglect the things that are necessary. You should also track your spending on the OneBank app to know where all your money is going.
- Avoid large purchases with little revenue return: We are not saying don’t buy nice things oh, but there are some nice things that will make your money return to you in the long run and there are some that will turn to Usain bolt in the opposite direction. For example, buying a house or a plot of land is good but avoid buying a car or any other large purchases not bringing in revenue or residual income if you can.
Let me not form, making these changes right now will definitely not be easy but the good news according to financial experts and economists is that the current rates of high inflation will eventually subside (Provided “they” do what they are meant to do oh). While intensified inflation could be temporal, let us just hope for the best and prepare our finances in case we see sustained inflation over the longer term.
Meeting dispersed, now it’s time for item 7.
What are your predictions on the inflation crisis we are facing in Nigeria right now? Tell us in the comment section