Paul McKinney defines recession as a general downturn in any economy.
A recession is associated with high unemployment, slowing gross domestic product, and high inflation. Generally, a recession is less severe than a depression.
The blame for a recession generally falls on the federal leadership, often either the president himself, the head of the Federal Reserve, or the entire administration. Well that is the definition of recession!
An average Nigerian trader interprets the period we are in as a period of “Dollar Rise”. According to these traders Prices of everything, I repeat, everything must increase everything includes, locally sourced food stuff like – red oil, garri, tomatoes etc.
I am not trying to be inconsiderate but what baffles me is how the price you pay for an item may increase the next day for that particular item. When you ask why – the answer is blowing in the air “dollar don increase”.
In other to stay out of debt and spend less, here are the few ways you can significantly cut down your expenses.
- Don’t Go Cashless – Well, it is advised to go cashless but truth be told if you want to spend less please go card less! Do you know you cannot carry a N100.000 bills about and be comfortable? But you can spend N250.000 with your credit card on one single shopping or even in a night club.
Forget about self-discipline when it comes to shopping or clubbing or even TGIF and you know you have a fat account you will throw away that self-discipline thing, besides, Nigerians like to show off! We live “if you have it flaunt it” life style. At least for those who live in the city! No try am for some kind villages o!
The bottom line is with your card you spend more but you can only spend less if you know that the cash you have with you is estimated to last for the whole week.
Just try it this week. Leave your ATM card at home.
- Set Weekly Goals – Well it is beginning to get tougher. Just start by setting aside the amount you need for a week and try not to exhaust that amount. Say to yourself, I will only spend N20.000 or less this week.
- you can begin by having a scale sheet, where you list all your weekly activities that involves money like –
- Paying electric bills
- subscription bills
- See a movie
- Buy gifts items
- Visit friends etc.
Just list as many as you can remember and put 3 boxes next to each of them.
Like TO-DO, Maybe NOT, MUST DO. Now make sure that anything not listed on this list must be carried over to the next week.
For the most important items – check the MUST Do Boxes, and the ones that can wait check the Maybe Not boxes and the rest can fall under the category of To-Do.
Let me explain, this is almost like a priority list only that this one involves spending. Things like pay your electric bills, subscription bills should be on top of your priority list, which is MUST DO, while those that can be done the next week like seeing a movie should be under TO-do. Visit friends and buy gift items should certainly be Maybe NOT. Just use it as a guideline, say if you keep N50.000 for the week, you would see that you cannot spend it all because you have a spending priority list.
Again, the week you pay bills etc. you shouldn’t really do TGIF (hahhaha) and seeing movies it will cut your spending for sure, just give it try.
- Separate your Needs from your Wants.
Let’s go back to high school definition of wants and needs. Simply put, needs are necessity while wants are desire to possess or do something.
In Economic wants are defined as desires that can be satisfied by consuming a good, service or leisure activity. Needs would be defined as goods or services that are required. Very simple identify the things that you can do without and treat them as secondary issues.
Before you jump in your car and drive to the Island only to say hello to your bae, ask yourself can’t I just pick my phone and call instead? That lemon pair of shoe you want to buy, ask yourself do you really need that?
You can also help yourself by preparing your own meal as against eating out. Carry your snacks and if possible your own bottle of water if possible to prevent the next point I am about to discuss.
- Have a Shopping list
Oh dear! I remember one day that I walked into a super mart to buy just a box of colouring pens for my little girl; I ended up filling up a shopping cart! Well it just happened that way.
To avoid this take a note of all the items you need to replenish in the home, and carry this list all the time, this will help you to even buy only items that you need and keep you away from the super marts.
- Shop without a Cart – Yea, when you are finally at the shopping mall, pls don’t be tempted to carry a cart – Carts are getting bigger these days and this is only for one reason, to make you shop more. There’s nothing wrong in grabbing a shopping basket or carry your items. This hack will make you very uncomfortable and you look clumsy your only option would be to leave the shopping mall as soon as you can.
Finally, you can also have someone do your shopping for you. List the items you need and give the person a price tagged list to help you out.
Try these and see if your spending won’t reduce.
Please be a sweet heart and share.