Inflation is an economic term that means the gradual increase in prices of goods and services with a decrease in the value of money.
This means that you spend more for the same or even less quantity of goods.
Everyone who earns and spends in naira is affected by the inflation rate. In many organisations, salary earners have to wait two years or more to receive a bump in their pay, which would mean earning less due to inflation.
In particular, food inflation is currently high, not just in Nigeria, but globally, and this means malnutrition and an increase in hardship.
According to the World Bank, International Monetary Fund (IMF), and the World Trade Organisation (WTO), “Supply chain disruptions, climate change, the COVID-19 pandemic, financial tightening, through rising interest rates and the war in Ukraine, have caused an unprecedented shock to the global food system.”
If you’re a salary earner in Nigeria, you have to deal with the increasing cost of food and other necessities, with no change in remuneration.
What N50,000 could buy a few months ago is now way less. To survive and stay sane, it is important to make the most of the resources you have, and that’s what this piece aims to achieve.
We spoke to some young people in Nigeria to know how they are surviving the ever-increasing cost of everything.
Here’s what they have to say:
“Omo, I don’t even know where to start. One of the ways I manage inflation in the country is to stay in my house. My friends and I don’t go out as often again. When we go out, we go to less expensive restaurants. For food, as a single guy, I’ve been eating one main meal and one light meal daily, and I cook my own food. One has to be wise.” (Adebayo, 27)
“I have a monthly budget and I constantly track my spending. Last week, I went to the store and had already paid for one expensive brand of milk before I realised I could have picked a cheaper alternative. I also had to start cooking because it’s more expensive to keep buying food, even though I’m not that good at cooking, I eat it like that. It really helps me save money.” (Emmanuel, 30)
“I intentionally source for gigs and jobs that will bring in more income for me. One other way that has been helping me is that I recently cut down purchases, especially on wants. I only buy things I need.” (Chris, 32)
“I try as much as possible to eat healthy meals because I know that the cost of treating an illness is way more. Having good friends also helps as we can put funds together because truth be told, people are going through a lot and handle things differently.” (Omolola, 29)
Below are more practical tips to help beat inflation:
Have a budget and try to stick to it
Before it is payday, get a pen and a note, or use the note app on your phone to list out your essentials for the new month. Transportation and feeding are examples of essentials. Budgeting would help you know things you should cross out that are not essentials. Some subscriptions, outings and trips might need to be cancelled.
Buy food items and groceries in bulk
You might not know this, but you actually spend more when you buy in bits. You can decide to buy all the food items you need for two weeks or a month, depending on what works for you. Don’t go out to buy rice when you want to cook rice. The price may not be the same as the last time you bought it.
Invest in a good fridge
This might sound contradictory since we’re talking of ways to cut down expenses and survive inflation. It follows a concept called saving by spending, where spending helps to save money eventually. Buying a fridge is an example of that. A fridge helps you easily cook and store food in bulk.
In present-day Nigeria, you cannot guarantee that the salt you bought a few weeks ago will be the same price when next you need it. New prices are now normal. And when the price of an appliance like the fridge changes, it won’t be by N2000 or N3000, it would be in leaps and bounds.
Buying a fridge now will save you the expenses of buying food items in bits, and for more expensive prices. A fridge would reduce your spending on food, and also reduce how often you cook.
Save wisely and consider investment options
Bank interest on savings cannot beat the ever-increasing rate of inflation. A year ago, N10,000 worth of foodstuff was way more than it is now.
The purchasing power of money is reducing daily, so you’ll only be losing money when you save long-term. If you have a purchase to make, and you have the money, buy it immediately. Only save for short-term projects. Once it is going to be for a while, explore investment options that perform well in periods like this.
Go out only when necessary
This might sound funny, but going out in Nigeria attracts charges, and even expenses you didn’t plan. On days you don’t have to go out, just remain indoors. Indoor hangouts can be as fun as outdoor hangouts.
Consider switching careers
This is related to the previous point. If your present job is not remote-friendly, you are one of the many folks facing it in Nigeria. Long hours of traffic in the heat is not a palatable addition to the current economic situation of the country.
There are remote-friendly career options that won’t require you to go out every day, and a plus is that they are mostly higher-paying than in-person jobs.
Try to cook your own meals
As much as regularly eating out can make you look bougie, it can be more expensive than cooking. There are many online resources that can help you cook great meals you’ll be proud of.
Above all, it is very important to cut one’s coat according to the fabric you have.
