You wake up one day and everything is changing, even as the man in the helm of affairs, Bola Ahmed Tinubu, had promised you a new Nigeria. There is gradual rise in the prices of goods.
In the past few days, you can see that the money you have spent on transportation alone is far above what it used to be.
You are wondering if your salary can carry you through the storm to that calm and good era.
Well, you are not alone.
In fact, many Nigerians currently just want to survive in the face of this new unpalatable reality. The rise in the prices of goods is already tearing your pockets.
As of today, the pump price of petrol has more than doubled while the Consumer Price Index (CPI) is also following closely.
The New Petrol Pump Price
The hike in the price of petrol is as a result of the removal of subsidy as pronounced by President Bola Ahmed Tinubu on May 29, at Eagle Square in Abuja.
This has plunged Nigerians further into a state uncertainty just as the prices of goods and services keep rising.
A failing economy that is borrowing to finance it’s budget, the devaluation of the local currency and over reliance on importation with low revenue generation capacity are the major contributors to Nigeria’s inflation.
The above goes a long way in affecting the cost of production in Nigeria.
Also, this causes the price of goods and services to stay consistent on the surge lane.
As inflation affects local manufacturers production capacity, the general masses who are the consumers, sadly, experience the situation from the point of a reduced purchasing power.
Unfortunately, their salaries do not receive any form of adjustments with the upward change in CPI.
More than ever before, you will need some tips that could help you go through this stormy weather of rising cost of goods and services.
Here are some suggestions that may help manage the impact of the looming hardship that is to come.
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 organisations 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, where you can, until a mutually agreed-upon price has been determined.
We are not suggesting you should go a a shopping mall and begin to negotiate price. Go to a local market or open market in your area.
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 will go down when demand is lowered.
Actually, you can differ purchases that are not immediately necessary. You will be able to get a better deal at a later date.
Turn the Challenges Into Opportunities
If you are an entrepreneur, find ways to add value to your clients or customers. Consider offering services or products of different price points.
This creates different options for your customers to choose based on their budget.
The key is this: While a lot of people will be coming out of this economic crisis jobless, broke, and depressed, look for opportunities within the challenges and exploit them.
You will thrive and come out on top.
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.
Embrace Agriculture
It would also be wise to embrace agriculture in small scale when there is a rise in prices of goods. Even if it is just vegetables in a small garden provide yourself some form of nourishing foods.
Have You Read: Petrol Pump Price: Here’s How High Inflation Will Go This June
Chances are that you may want to cut down on how much you eat, but increasing vegetables in your diet will make you go through this phase healthy.
So, your vegetables farm could provide you enough for your home.
Above all, it will help save cost on some food crops that would have cost you money.
