6 FINANCIAL SMART TIPS TO GET BY IN A DIFFICULT ECONOMY

                  

Prior to the COVID 19 epidemic, the economy was not doing well. Even so, it was still much better than it is now as it slowly recovers from the recession. However, with the epidemic continuing having a negative impact on the world economy, Nigeria’s economy seems to have become worse. This has made survival for everyone almost impossible. This situation has led to the failure of numerous businesses and increased crime rate.
The continued rise in the cost of products spurred on by inflation and the depreciating currency of the naira is another aspect that has not helped the masses, but rather attacked them.
People find it challenging to buy food and other basic things of life due to the country’s struggling economy, particularly if their source of income is unstable.
That is why @amrisonblogspot is here with few helpful tips to navigate this brutality.

1. DIVERSIFICATION OF INCOME
The underlying danger of relying solely on one source of income is that you could lose your ability to pay all of your financial obligations if the economy shrinks and you lose your job. Even if you have a fantastic full-time job, it is preferable to have a second source of income. Having more jobs means having higher job security because job security is so low these days. For survival in a difficult economy, diversifying your sources of income is really essential.
If one source of income starts to dwindle or disappears entirely, you can fall back on other sources to keep you afloat. You can earn extra money without starting two or more enterprises. Instead, you may choose to generate three more streams from a single task. For instance, if you are a makeup artist, you can maintain the same business and offer services like semi-permanent makeovers, hair styling, and frontal installation. The advice to start an online business also applies to people who are employed. Social media is significantly more powerful than you might realize. Additionally, you can pick up a tech skill that will let you work at your own pace. Even if your salary is not as high as it once was, every little bit helps. You might even come out of the recession with a thriving new enterprise when the economy starts to recover.

2.  PLANNING AND BUDGETING.
A budget or spending plan is necessary, especially in this challenging economic climate where many individuals struggle to survive. It makes it easier to manage your finances. Nevertheless, owning one will help you understand how your money is used and spent. To keep track of how much money you spend on your needs and wants, you can make a weekly, monthly, quarterly, or annual budget. In other words, maintaining a record of your monthly expenses will assist you in developing a budget. This frequently includes expenses for accommodation, food, clothing, health care, transportation, and other things. Budgets are so important that you could spend hours designing the perfect one, but most of the time, the challenge is not in developing a budget but in adhering to it. Planning and setting a budget can assist prevent impulsive purchases. You'll be able to avoid making impulsive purchases and keep up your mental wellness if you set aside a small amount of your monthly spending.

3.  SPENDING MONITORING.
By monitoring your expenses, you can have some control over your spending. Keep track of your expenditures, particularly in a difficult economy, to gain more insight into your financial condition and how you got into debt. The ability to track expenses will then allow you to develop a successful debt alleviation strategy. Keeping a record of your spending and outlays constitutes tracking your expenses. Making a clear distinction between your wants and necessities enables you to see where you spend the majority of your money and what to prioritize. It enables you to stay within your budget, identifies money problems, and aids in the achievement of your financial goals. Try to cut back on that expenditure if you went over budget. If you didn't spend enough, you might want to invest and save more money.

4. KEEP TO YOUR MEANS.
If you actually want to live within your means and have financial security in a challenging environment, you must make conscious efforts to cut your spending to make room for savings. And one method to do it is to rigorously stick to your spending plan and make sure you only make purchases that are necessary. There is no need to buy something you don't need because the economy currently does not allow for such.
Spending less can enable you to save more money and keep you from struggling to adapt to a new way of life when a downturn or recession occurs. Being able to live cheaply can be a terrific tactic. Making financial decisions that have the least possible impact on your way of life while yet cutting costs is more crucial. If you make too many severe cuts, you won't be able to keep them up over time. Learning to get by on less is the key to surviving a recession.

5.  EMERGENCY FUNDS
When the economy struggles, our employment and income could be in jeopardy. It is essential to put money away for emergencies. In a nutshell, an emergency fund is money that you have set up specifically to help you get by during difficult financial circumstances. You'll have a safety boat to fall back on if you put money away for an emergency. So regardless of whether you lost your job, your firm isn't making any money, or you made poor financial decisions, you can ride the wave and emerge from the recession on your feet. You at least save the equivalent of three to six months' worth of income. Better still, save up eight to twelve months' worth of spending, especially during periods of unstable employment. Save enough money to last three to six months, if you can.

6.  MAKE A VARIETY OF INVESTMENTS.
A downturn in the economy could be terrible for your finances if you invest a larger percentage of your assets in securities traded on the stock market. Therefore, it is crucial to diversify your investments as a result of this. In your investing portfolio, make sure your investments are spread throughout a variety of industries and asset types. So that changes in the market won't have an impact on you and your losses won't be significant.
Whether you're purchasing a home, an apartment, or even land, real estate is a common investment that frequently improves in value over time. Bonds are typically a wise approach to increase your income. While stock investment is a smart move to help your portfolio grow. Consider investing globally as well to reduce your susceptibility to economic downturns by diversifying your interests across various countries.

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THANKS FOR READING.
BY ADEGBORO DAMILOLA.