In spite of the negative things that have been reported about the hard times being experienced by Nigerians across the country at the moment, the fact is that this recession will eventually end one day.
This isn’t the first time that the Nigerian economy has taken a hit, and it most likely won’t be the last. Regardless, the truth is that times are financially tough, and many families and businesses are suffering from the present bad economy.
Unfortunately, most Nigerians, like human beings in general, tend to make decisions based on emotion and fear rather than facts and analysis. But it’s always important to not give way to fear and panic because it will only make a bad situation worse.
For this reason, WuzupNaija brings to you a list of five things you should never do despite the present economic hard times:
1.Don’t believe everything you read on the pages of newspaper, social media or hear from the News
One basic fact about the media is that it is out to grab your attention, and you’re not going to hear good news. In journalism, Good news doesn’t sell. Every news outlet, be it the traditional ones or the new media, wants to talk about how terrible things are. They make their headlines to be catchier in order to grab your attention. Hence, don’t make investment decisions based on what you read in the papers or online. That’s a quick road to go bankrupt. If you’re worried about one of your investments, speak with some of the experts out there before you do anything rash.
2.Don’t stop investing your hard earned money
Due to the current recession, many believe it makes sense to save their money rather than invest their hard earned money in any business venture. The fear of the unknown! This move, in effect, has caused the exact thing everyone was afraid of – a further decline in the GDP. Though on an individual level this makes sense, overall it hurts the national economy and prolongs the time it would take the country to bounce back from this recessionary period.
If you’re worried about the prospects of investing your hard earned money at this period, I will advise you invest your money in real estate or companies with excellent track records. Also, it is always advisable to have multiple investment avenues so if one fails, you won’t be ruined.
3. Don’t rely on the government
If you’re among those waiting for a financial assistance from the government or hoping a declaration from the President Muhammadu Buhari would solve all the current economic hard times, it is time to wake up. The government is having a hard enough time balancing its own budget. The average Nigerian is the least of its concerns right now, and the government is the last institution you want financial help or advice from. Instead, find a way to increase your stream of income.
4. Don’t stop saving for the future
Always find room in your budget, even if it is tight, to save some money. If you’re having a hard time finding the money to get by, before you stop saving for your retirement or children’s education, you should instead, reevaluate the way you’re spending your money. Sometimes making simple cuts to your spending or small changes to your standard of living can make a difference.
5- Don’t add to your debt burden
With the current recession in Nigeria, it is not advisable to add monthly payments/debts (such as a car loan, home loan or similar obligation) to your income, especially a single income earner. Taking on new debt may not be a problem in good times if the individual makes enough money to cover the monthly payments and still has extra funds to live on and to save for the future. However, what happens if the individual’s livelihood is adversely affected in the midst of the economic turmoil? What happens if the borrower is laid off?
In short, taking on new debt in a recessionary environment is risky, and should be approached with caution. if you’re considering adding monthly payments/debts to your financial equation, understand that this could complicate your financial situation if you are laid off or have your income cut for some reason.
