By Elvis Eromosele
IN Nigeria today, the monster of
inflation is rearing its head with
unrelenting intensity. Prices are
spiralling out of control, and the
average business owner and individual
are grappling with the harsh reality of
inflation’s bite. While this economic
challenge is not unique to Nigeria, its
impact is profoundly felt by those at the
bottom of the pyramid.
According to the National Bureau
of Statistics (NBS), Nigeria’s annual
inflation rate climbed to 25.8 per
cent in August 2023, from 24.08 per
cent in July, marking the highest rate
since September 2005. Experts point
out that the rate reflects the impact
of the removal of fuel subsidies, the
devaluation of the official exchange rate
and security issues in food-producing
regions.
To survive and indeed thrive in the
face of skyrocketing inflation, there
are strategies that individuals and
small businesses can deploy. Let’s look
at 12 comprehensive blueprints for
navigating these turbulent financial
waters:
Diversify Income Streams – In a
nation where inflation can erode your
purchasing power, diversifying your
sources of income becomes paramount.
Businesses and individuals should look
beyond their primary income streams
and explore other opportunities, such
as part-time jobs, freelance work,
or side businesses. By doing so, you
reduce your reliance on a single source,
making you more resilient in the face of
rising prices.
For instance, a school can explore
alternatives on how to optimize the use
of its premises and faculty; those with
spaces can consider using it for events; and individuals who write and speak
well can look at public speaking roles
or writing gigs.
Budget Wisely – The cornerstone of
any sound financial strategy is a well-
crafted budget. Create a detailed plan
that meticulously tracks your expenses
and income. Prioritize essential items,
such as food, housing, and healthcare,
while cutting back on non-essential
spending. The discipline of budgeting
can help you save money and protect
your financial stability. If you need help,
don’t hesitate to contact a financial
advisor.
Invest Wisely – To outpace inflation,
consider investment options that offer
better returns than traditional savings
accounts. Stocks, real estate, and
commodities are assets that have the
potential to grow in value over time.