No Japa Plans? How To Thrive Financially In A Struggling Economy
— While we work towards a healthy Nigeria, it is STILL possible for you to thrive financially, home or abroad.
Pop quiz, everyone! Answer all questions
In a room filled with 100 young and talented Nigerians, what percentage would there be of:
a. Individuals who plan to migrate to greener or at least green-ish pastures
b. Individuals who hope to leave the country with no concrete plans
c. Individuals with no japa plans in sight
We can mostly agree that the polls for option A would be higher, now more than ever. Living in Nigeria, these days, feels quite like being on a fast-capsizing ship with no escape or lifeboat in sight. You might even be convinced that the idea of wealth creation is intrinsically tied to joining the league of tech comrades, and/or leaving the country. The effects of a struggling economy on the regular Joe include unemployment, increased expenses, and generally a high cost of living.
While we work towards a healthy Nigeria, it is STILL possible for you to thrive financially, home or abroad. Here are 6 ways to make the best of the economic climate to create wealth, without leaving the country:
- Live Within Your Means
For a successful weight loss program, one of the key necessities is to be on a calorie deficit – which is consume less than you burn. In your financial freedom, it is important to live on a budget slightly below or within the limits of your income. This does not mean you cannot enjoy the best of life; it simply means that your expenses should be set up in such a way that you are not living from paycheck to paycheck.
- Set Up Passive Income Streams
The concept of multiple streams of income cannot be over-emphasized. You need a main hustle, and if we are being honest, multiple side hustle. Just as you diversify your investment portfolio, your skills, hobbies, or interests can be avenues to augment your income. It also has the added benefit of easing some of the anxiety that comes with the looming fear of unemployment.
- Move Your Savings to a High Yield Account
With unwarranted bank charges and the frustrations that come with owning a bank account, nowadays, do not be quick to move your money to your piggybank. Seize the opportunity of investing your money into high yield notes which offer you interest rates higher than those of commercial banks.
- Invest When Prices Are Low
Anyone who is familiar with the ups and downs of the cryptocurrency market, is very familiar with phrase, ‘buy the dip.’ Resist the urge to give in to the pressure of nervousness when stock prices drop. Take it as an opportunity to invest in quality, 'solid' financial instruments. This strategy is also known as dollar-cost averaging, which involves buying less shares when prices are high and buying more when prices are low.
- Balance Risk and Reward
Diversify your investment portfolio!
One of the biggest mistakes people make when investing is putting all their financial eggs into one basket. To further hedge against the risk of market volatility, your investment portfolio should contain an array of financial instruments; the reason for this is that, if one instrument is on a decline, the others will be stable or performing well. With this strategy, you are not completely at a loss, and you gain profit (interest) at different rates.
Explore your options for wealth creation here.