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Another Titanic Shipwreck? (Principles of savings in trying times)- 3

Am I the only one that takes down my glasses when I see the incremental rate of dollar on an almost weekly basis? There’s this viral panic in town and the trending word on almost everyone’s lip is “recession’’ but to him that is money wise, it’s time to:

  1. Apply the brakes on impulse buying.
  2. Scheduling and planning your purchases help you buy things you actually need, not things you want. It helps to eliminate impulse buying which consumes 25-45% of your income and throws you into debt.

    • Schedule for monthly purchases so you can take advantage of discount sales if any.
    • Have your living expenses income in some form of investment vehicle to reduce accessibility 
    • For every discount, kindly save and invest the difference.
    Implement the Ultimate ‘’B’’ word. 
    You must budget both your income and expenses.
    If you must survive this difficult time and still invest, you need to discipline yourself and your entire household (if any) to have and stick to the budget. Effective budgeting helps in the allocation and evaluation of financial resources. During a recession, it can be difficult to cover day-to-day expenses – let alone create room for investment.

  3.  Buy your household items in bulk. 
    Yes, buy things in bulk – especially non-perishable items.
    Many stores offer items in packs, which means you can actually save money – let’s say, between 15-25% – in the long run if you buy them in bulk instead of buying them individually.

    • Partner with colleagues, friends, and neighbours to purchase things in bulk and share at the end of the month. With such arrangement, you can enjoy amazing discounts. Go ahead, talk to them, don’t be a loner, there’s love in sharing. For instance, it is safer and cheaper to travel in group; it’s also less expensive to share a flat with close friends or relatives
  4. Learn to negotiate things. 
This is the time to dust off or hone your negotiating skills. You can actually save amazing funds by just negotiating for a discount. Don’t be shy. Do it.
In the words of Donald Trump: ‘’anything is negotiable.”

  • Negotiate for mode of payment without interest. Yes, it’s possible.
  • Negotiate for discount 
  • Negotiate for additional services that you would have paid for.
  • Negotiate for additional time before payment. Always remember that every item has 2 price sides: real price and market estimated price. 
Gun for the real price.

       4.  Cut down on your bad habits. 
No more games. Cutting back on alcoholic consumption as well as fizzy drinks and junk foods are a great way to save money during this period.
In case you don’t know, this habit can really contend with your budget and it is not healthy for you either.
Learn to take food to work.

So, the meat of this whole story is this:
Having a healthy emergency fund, learning how to adapt to a more frugal lifestyle, and diversifying your sources of revenue are just a few money saving tips that can help you survive a recession. Difficult times are something beyond our control, but what we can control is how we prepare for tough financial times. Taking precautionary measures now to safeguard your finances in the future can make a world of difference. When you know how to recession-proof yourself and your finances, a downturn in the economy is no longer anything to fear. Instead, you can live peacefully knowing that while you can’t control the world, your finances are under control and you’ve got your survival kits on.

Folks, savings might just be the rivets, the all-important metal pins that would save your titanic (finance) from wrecking and sinking.

Cornel Agwu
Financial Fitness Expert

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