The economic recession that the country a little over a year ago has made many to ‘sit up’ as it were when it comes to how they handle their finances. Many had to drastically change their lifestyles with some having to suffer emotional and health problems as a result. It really did not have to be so. What is worse is that now that things starting to take a turn for the better, Nigerians are gradually returning to that former lifestyle. Unfortunately, many who are doing so are ignoring signs that are indicating that while the country is on the brink of leaving economic recession, they are about entering into their own personal recessions. These are 5 common examples of these signs
The Nigerian society is primed for excessive spending. From never-ending social functions requiring huge sums to the constant showy display of material wealth on social media, the society is always silently screaming Spend! Spend!! Spend!!!” into our ears. Many cannot block out this scream and end up constantly splurging on items that really will not them any single kobo back. The first thing to do if one is to block out that voice is to watch your company. If those you move are the sort that spend everything on anything, then it’s most likely you are too. After all, there’s a reason for the “Birds of a feather flock together” saying.
Living on debt
Another common sign is when you constantly find yourself depending on a loan. Don’t get this wrong. A loan for suitable purposes such as a viable business venture is good thinking. But when you need a loan for everyday recurrent expenses like food, shelter, healthcare etc., then there is trouble around the corner. Very soon, you are likely to so neck-deep in debt that no one will be ready to loan any more money. Neither will you have any to deal with necessary expenses. Welcome a personal economic recession.
A lot of items you don’t really use
Take a look at your store, living room and personal effects. If they are full of stuff you don’t really use often, then there’s a problem. It means that you’re not really putting thought into your needs before making purchases. Rather, you’re more of an impulse buyer. In turn, this means you have spent valuable funds on useless things. Another sub-problem here is rationalizing that you really need some things. For example, a newly married couple going to purchase a 7-seater, 4.8-liter, space van in addition to another 5-seater, 3.5-liter SUV just because they both need cars is questionable. While they both use the cars, what happens to the extra space when they go around town? Just an example of frivolous spending on necessary items.
Living from payday to payday
When I was in university, there was this joke about how the quality of food a student takes in reduces as the month goes by. Unfortunately, many workers are still guilty of the same problem. When a worker constantly finds himself or herself going in debt before the next payday, then there is trouble lurking. Any delay in payday would spell disaster. Considering the way Nigerian employers are, that is not a sensible position to put yourself.
All the above signs all boil down to spending heavily and in most cases, more than what you earn. What that means is that to prevent all of these problems, you need to spend less. How though can you do that without knowing exactly how much you spend. There are certain expenses like airtime and data recharges that seem tiny but occur so many times that they add up to huge sums. Try to track and control your spending your spending by creating and strictly following a budget.