2 Things You MUST DO to Survive Economic Uncertainty

Survival Strategy:

Surviving economic hardship in times of economic uncertainty requires Smart Strategies for Financial Stability. You will learn how to protect your wealth in uncertain times, expand your income sources and unlock new financial opportunities if you stay connected to this blog. Thriving in the face of the rising cost of production and its consequent high cost of living all over the world has made it even a double tragedy for businesses and individuals to survive anywhere. A study showed that 80% of businesses fail within ten years of their existence. That is to say that out of every 25 businesses started up only 5 will survive the first 5 years and 1 after 10 years.  But it seems that the reality on our faces today is worse than what the report was a decade ago even with improved technology and processes.  How did we as a people even get here in the first place?  If you know, please, tell us in the comment section below.

It is a common thing to hear people say “I am” or “we” “are managing”, and with the current economic reality today, “managing” is exactly the case for so many individuals and families around the world today.  In Nigeria, the National Bureau of Statistics (NBS) Multidimensional Poverty Index (MPI) report 2022 shows that 133 million, representing 63% of Nigerians are multi-dimensionally poor. All over the world, the cost of living keeps rising geometrically on daily bases with the rising inflations and uncertainty, thereby making survival more strenuous for people of all classes and races.

Costs of energy, stable items and every basic necessity of life are steadying going up unabated even as most civil servants, especially in Nigeria still receive the same salary and where there is any form of increase, the impact is very negligible and cannot balance out the high inflation in the cost of basic necessities like food, energy, shelter etc.

How To Beating Inflation

Nigeria's inflation in October rose to 21.09% and is projected to rise to 22.2% by the end of 2022. From the IMF world economic outlook for 2023, it is clear to all that as bad as things are already they could get worse no matter your country of origin or residence.  So whatever plans you have for 2023 have to start now, those who will beat the projected harsh economic situation in 2023 have already gone far ahead into 2023 with plans and strategies.  Now is the time to get fortified against inflation, food crisis and uncertainties. With the pump price of fuel in parts of Nigeria already selling above N230 per litre and the cost of transportation doubling should tell you that indeed things could get terribly bad from now till the general election and transition and could get even worse depending on who emerges as the winner in the election.  These are what we think can help to beat the inflation and food crisis;

1. Reduce Your Liabilities And Secure Your Assets

 This is certainly not the time for extravagance in your spending, it is rather a time to be prudent. Spend only on needs and assets. In times of uncertainty such as this, the wise secures their assets by reducing liabilities. 

She considers a field before she buys or accepts it [expanding her business prudently]; with her profits, she plants fruitful vines in her vineyard.

 Proverbs

Get rid of all liabilities; i.e., those things that keep taking money from you, causing you to engage in unnecessary spending spread, but those not bring in any income.  Start putting some money aside, no matter how small and if you have any savings already, ensure that you secure it against devaluation by ensuring that the money is not idle or in your local paper currency.  Some time ago we discussed types of money and what each of them means, you can check it out here as it will surely help you know how to manage your money for maximum value.

2. Increase Your Sources Of Income 

One source of income is no longer sustainable in today's world of consistent and steady rises in the cost of living.  It is no longer fashionable to put the entire load on one person in a family or on one income source. Apart from your primary source of income, you should have other ways of earning income. It is said that all the wealthy people you know today have at least 7 income sources. There is no longer the time to sit back and wait for a job or say that you cannot do business, better still farm.  Desperate times call for desperate measures if you must survive the desperate time. By all means, hustle hard.  You cannot afford to depend entirely on one income stream anymore.  Even my present understands this principle which is why he is multi-tasking; serving his people on multiple fronts as president and petroleum minister. Moving on!

This is the time to spread your tentacles wide, if need be, acquire the new relevant skills to boost your income value in your workplace or business.  Learn moneymaking and management skills to help you in your personal finance and in knowing how to invest any little money you have judiciously for it to multiply.  Also, if you can get a higher-paying job or negotiate for a salary increase in your current job, by all means, do it.  The bottom line, your incomes just have to increase to meet the increasing demand for it.

That is it, the 2 things you must do if you intend to survive the hardship.  We deliberately want to keep our articles as short as possible so that you can get the information clearly and quickly.  However, this is part 1 of a 2-part series. Part 2 which comes next is Survival Strategy In Time Of Economic Uncertainty: 2 Things You Must Not Do.

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Continue Reading: Part 2: 2 Things You Must Avoid

Cheers! and stay blessed and productive

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