A recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. Nigeria is officially in an economic recession for the first time in 25 years. So it is likely that the younger generation may not know how to survive a recession.
This article will help you prepare you for this recession, and the earlier you start preparing yourself and family for the recession, the easier it will be on you.
1. Talk it over.
Sit down with every member of your household and go over your finances. How you resolve and differences in your approach to money will have a profound effect on your relationship’s chances of succeeding. This is the time to teach your children money management skills.
2. Reduce Expenses:
There are many ways to cut expenses during a recession. In many cases, you can maintain your same quality of life while focusing on living lean and cutting out extravagant and unnecessary expenses.
3. Keep the money flowing in.
If you have a job, be an amazing employee. Now is not the time to slack. Show up early, stay late, and volunteer for projects. Pick up the slack for other workers; it’s what will happen when people get laid off, anyway, so now is the time to prove yourself. Look for ways to save your employer money, especially if you see your employer doing little things to that effect.
4. Make sure you have an income
If you don’t have a job, find other ways to make money fast. Focus on cutting your expenses, but if you are not getting money in, no matter how you cut your expenses, you will soon be out of cash.
5. Keep saving.
Cut down your expenses aggressively, so you can still have some savings at the end of the month. Recession is a time of uncertainty, and the best physical defense against such uncertainty, is a little savings.
6. Learn more skills
Now is the time to improve on your skills or learn new ones. Learn how to make stuffs, learn farming, computer repairs, whatever you have love for. Your skills can save you one day and at least help you to put food on the table. If you run out of cash, but have skills, you still have something. But if you run out of cash with no skill, you are really in deep trouble.
7. Enjoy life.
In order to avoid recession depression, don’t let fear control you. An intense feeling of paranoia can make you an inflexible employee and also strain your relationships. Be thankful for what you have, and make sure to have fun. Invite your family to think of creative ways to save money without skimping on happiness. Accept difficult times as a challenge for your fortitude and adaptability.