Inflation in Nigeria!
The cost of living is rising! And rising very fast.
The cost of the goods & services you purchase keeps rising due to inflation.
It is high inflation that is to blame when you visit the market and see that prices of goods are rising quickly.
Here are some facts about inflation and how it affects your income
- Inflation in Nigeria is now running at over 30% annually (some will say it is more).
- If your monthly salary is the same as it was at this time last year, inflation has caused a reduction of about 30% in your monthly income.
- If in the past year your monthly income has increased, but not by more than 20%, then inflation has caused your income to be lower than it was a year ago.
- Inflation is making you poorer as a result of your savings account if your account isn’t returning more than 30% annually.
- You are not making the most of your money’s ability to work for you in this high inflation environment if your investments are not returning more than 30% annually.
Inflation is global, however it is just simply higher in some countries.
Many analysts also predict that the high inflation will continue for at least two more years. In actuality, nobody is certain of how long it will continue.
In Nigeria, you probably already know that if prices increase, they hardly ever return to their prior levels, so being organized and considering the long term is a wise course of action.
The smart thing to do is to be prepared and think long-term.
What then do you do to lessen the harm that inflation does to your monthly income?
Spend Prudently
Reduce your expenditures and spend only on basics.
Additionally, you should buy some things in large quantities if you can because prices will only rise.
You must adhere to your budget during this time more than before.
Save Less
This may seem illogical, however, if inflation is high, your savings account’s return will be lower than the inflation rate.
Therefore, rather than making you wealthy, your savings account will only make you poorer.
But if your savings account offers you an annual interest of more than 30%, you should save as much money as you can since that is an incredible savings account.
Have an emergency fund at hand
We previously advised you to save less right?
Here, we are telling you that the little you save should be mainly for emergencies and also day-to-day expenses.
This strategy is one that a lot of people run away from, but end up regretting because life is unpredictable and truly, sometimes, we run into situations that we do not plan for.
Do not follow the crowd, plan for those unforeseen situations and be a step ahead.
Invest more
The only thing that can help you live above the effects of inflation is investing. However, not all assets are wise investments in a period of high inflation.
You should only make investments in secure assets that will increase in value faster than inflation.
Invest in assets with high liquidity, this will help you easily convert your capital or ROI in cash when you need to. (The higher the liquidity of an asset, the easier and faster it is for you to convert that invest into cash).
For instance, the current rate of inflation is around 30% annually, which indicates that the wise thing to do is to discover SAFE ASSETS that provide you with an ROI of more than 30% annually.
This way, you may invest more of your money and enjoy life without having to worry about inflation.
Let’s not delude ourselves; there aren’t many of these low/moderate risk investments out there and for most that are available, one would need a sizable amount of funds before you can even begin investing.
To help fix this, you can use Questergate investment plans with returns higher than the inflation rate and this helps guard your money against inflation.
Click here to read more about how to benefit from this plan and how you can use it to make your financial life better and more stable.
Note that the four tips earlier listed are all possible and achievable, using either the Questergate short-term or long-term investment plans.
Remember to spend less, save less, invest more, and make sure you have an emergency fund.
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