As the global recession looms, Investors King understands that recession could leave a huge dent in your living and income. Already, most countries of the world including Nigeria have recorded an unprecedented increase in the inflation rate.
According to the National Bureau of Statistics (NBS), Nigeria currently has an inflation rate of 21.09 percent.
To guarantee that you can weather the storm during a recession, it’s crucial to carefully manage your funds.
Here are some things you may do to manage your money amid a downturn:
Create a budget
The first step in handling your money during a recession is to put together a spending plan that accounts for your income, outgoings, and savings. This will make it easier for you to determine exactly how much money you have to spend and where you may make savings, if necessary.
Create an emergency fund
In a downturn, it’s critical to have some money set aside in case of unforeseen costs, such a job loss or medical emergency. The goal is to save enough cash to pay for your living expenses for at least three to six months.
Cut back on unnecessary expenses
Take a close look at your budget and identify areas where you can cut back on spending. This might include canceling subscriptions, eating out less often, or reducing your overall spending on discretionary items.
Consider a side hustle
If you’re worried about a potential loss of income during a recession, consider taking on a part-time job or starting a side hustle to generate additional income. This can help you make ends meet and build up your savings.
Be cautious with credit
It’s tempting to rely on credit to make ends meet during a recession, but this can be a dangerous trap. If you’re already struggling to pay your bills, adding more debt can make your financial situation even worse. Instead, try to pay off your credit balances and avoid taking on new debt if possible.
