MUST READ: Checkout 10 Money Savings and Investment Tips To Survive This Economic Recession

Although recession is not an experience that the citizens of any nation would like to undergo, yet many people neglects the fact that it is unavoidable in that it is a part of normal economic cycle.

Recession is usually characterized by high unemployment and a level of demand that is low in relation to the production capacity of an economy.

The truth is that once in every six or at best eight years, some nations will experience economic meltdown and recession sets in thereafter. But while President Muhammadu Buhari and his economic team are currently working to re-position the economy to the path of prosperity and success, it is necessary to ask ourselves what we can do as individuals to live above the heat and negative effects of economic recession.

Here are the money saving tips:

1. Add new skills

During economic recession, it is mostly difficult to secure another job after losing one. Employers would typically want to employ those with higher qualifications and greater years of experience. Learn a new language, enroll for that professional course, keep adding new and useful skills so as to add values and stay ahead.

2. Prepare for job loss

The reality is that most companies are also badly affected by the recession, sales have dwindled and consequently production capacity has also dropped. They have options of either cutting down staff’s salaries or lay-off some personnel.

Whether or not you are going to experience job loss, kindly update your Curriculum Vitae and always be on the lookout for possible job openings elsewhere.

3. Create an emergency fund:

Research has it that most employees don’t have emergency funds kept anywhere. But if you are reading this article now, whether you are on a paid employment or self-employed, start one today by setting aside certain percentage of your monthly income as emergency fund. However, adequate care should be taken so as not to over save which may affect your basic needs and living expenses.

4. Pay off your debt

If you are gainfully employed, you must stay away from debts. Avoid accumulation of debts as much as possible, live moderately according to your income level. If you are currently in debt, your focus should be on paying off your debts as soon as you can by prioritizing them and maintain a good communication line with your debtors and update them with your repayment plans. 

This strategy will help you in lowering your spending and enable you have more money to save.

5. Keep track of your daily expenses

Get a small notebook with you to record your expenses and also file your receipts. Be conscious of your daily expenses, whether you pay for them in cash or you use the POS machine or mobile banking in paying for goods purchased or services enjoyed. Before incurring that expense, you need to reflect on the reason for buying, as much as possible, avoid impulse buying. Be wise about it; the overall goal of this is to reduce your spending by keeping track of the expense item that takes large chunk of your wallet.

6. Boost your income

It is not a crime if you have multiple sources of income during this recession provided you are involved in legitimate activities. Identify other jobs that interest you, go for them and back them up with actions and there you go by earning some extra income.

7. Avoid frivolous spending

Nobody is advising you to be unnecessarily stingy but the fact remains that we are in recession and if what you can afford to celebrate a naming ceremony is three(3) crates of soft drinks, please don’t over stretch yourself by ordering for (10) crates. Living within the bracket of your current income and don’t allow cultural beliefs to override your finances.

8. Housing

If you know that your rental fee is currently high relative to your current income, you may consider changing accommodation and moving to smaller and less expensive accommodation that will be reasonably comfortable.

9. Family planning

This is the practice of controlling the number of children one has and the intervals between their births particularly by means of contraception or voluntary sterilization. Having too many kids that one can afford to cater for during this economic recession is capable of mounting pressure on a static income. The rising cost of raising kids is something to worry about and adequate caution needs to be taken by discussing with your spouse on birth control.

10. Buy in bulk

The advantages of buying daily needs in bulk far outweighs buying in units, you get to enjoy some discounts when your items are bought in large quantity compare to making several trips to the retailer. Deal more with the wholesalers.