5 Ways To Manage Your Finances Amid Soaring Prices

5 Ways To Manage Your Finances Amid Rise Of Prices

1 month ago
2 mins read

As the Nigerian economy continues to struggle with rising prices, experts suggest making a plan and sticking to 5 ways to manage your finances.

“What are these prices?” Victoria Adeoye exclaimed, holding up a pack of beans during a video call with her mother while shopping in Lagos State. Adeoye, a business development executive and influencer, was visibly frustrated. She and her mother decided to buy only essentials and look for cheaper options in open markets.

Adeoye’s shopping experience became content for her social media audience. She showed her grocery bag and receipt, which included packs of Ijebu garri, beans, semo, and a salad plate totaling nearly N20,000. Despite this, her list remained long, and she doubted her food budget would last the month.

Chidi Echebore, a father of four, praised his wife for maintaining their household’s feeding allowance despite his inability to increase it. “I don’t know how she does it, but we still have food,” Echebore said. “I haven’t increased the allowance. There’s a lot of support from her.”

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Echebore, a civil servant, noted that they stopped buying certain items like bread daily. “We can’t keep up with the children’s eating habits. The economy isn’t their fault, but it’s challenging,” he added.

Omowunmi Adenle, a marketing officer, shared her struggles with rising food prices. “I went to Iyana Iba market, and I couldn’t buy half of what I needed. Tomatoes and yams were too expensive,” she said. Adenle decided to buy only essentials in smaller quantities and sought recipes that didn’t require tomatoes or pepper to cope with the price hikes.

Abubakar Kyari, Minister of Agriculture and Food Security, explained that a tomato infestation called Tomato Ebola caused the price increase. This, along with other economic challenges, has left many Nigerians struggling to afford basic necessities.

Nigeria’s inflation rate rose to 33.69% in April, with food inflation at 40.53% year-on-year, up from 24.61% in April 2023. Despite government intervention programs, many lives remain unaffected.

Uche Uwaleke, a professor of Capital Markets at Nasarawa State University, criticized the Central Bank’s approach to fighting inflation. “MPC should tighten policy incrementally without undue reliance on the monetary policy rate,” he said. Uwaleke emphasized that the economy faces both inflation and stagflation and urged a balanced approach.

In light of these challenges, here are five ways to manage your finances:

1. Live Within Your Means

Personal finance expert Kelechi Godfrey advises living within your means. “If you can’t pay for it twice, you can’t afford it. If you need it but can’t afford it, find additional income streams,” Godfrey suggested on Instagram.

2. Plan Your Expenses

Access Wellbeing Services, an NGO, recommends planning after identifying financial stressors. “Make a list of your financial stressors and find ways to reduce expenses. Commit to an action plan and review it regularly,” the NGO advised.

3. Track Your Spending

Tracking spending can help manage resources effectively. Research shows that keeping a daily list of expenses can be useful. There are many phone apps available to assist with this.

4. Avoid Unhealthy Coping Mechanisms

Access Wellbeing Services warned against unhealthy coping mechanisms like smoking, drinking, gambling, or emotional eating during tough economic times. “Recognize these behaviors and seek help if needed,” the NGO concluded.

5. Get Creative with Meals

Adenle’s strategy of finding recipes that don’t require expensive ingredients can be a practical way to stretch your food budget. “It’s time to get creative in the kitchen,” she said.

By following these steps, you can better manage your finances and navigate the challenges of rising prices.

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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