Life, in Nigeria has truly become challenging and costly lately. Every day we are greeted with news of rising costs economic hardships, fuel shortages, power cuts and a myriad of issues.
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The hardship seems to be on a entirely different level that many of us have never experienced before. In times like these, having a good plan and management of your money is absolutely crucial to keep your life going.
I'm not going to pretend that having money solves everything. We all know that no amount of wealth can fix deeper issues of insecurity, poor governance, and lack of basic social amenities plaguing our nation. However, financial planning and discipline can at least help individuals and families navigate the worst impacts of financial hardship during these turbulent periods. A little money put away wisely goes a very long way.
Think about the basics of human survival - food, water, shelter, healthcare, security, and energy for lighting/cooking. In Nigeria today, all of those essentials have become luxury items that only the financially disciplined can consistently afford without strain. Let's break it down:
Food prices have skyrocketed on basic items like rice, beans, garri, yams, bread and more. Simply keeping your family fed has become a major monthly expense. Those without enough funds inevitably face malnutrition and stunting, especially for children's growth. This can have devastating longterm impacts on health and human potential.
Potable drinking water is increasingly difficult to obtain for the average Nigerian. We can no longer rely on public utilities to pipe clean water to our homes regularly. Either you purchase multiple trucks of water weekly for storage tanks (very expensive) or you risk drinking contaminated borehole/lake water and its associated diseases. Again, lack of funds equals lack of access to proper hydration.
Housing costs, both for renting and purchasing, have priced out many residents from decent accommodations close to cities. Younger people can't afford to move out on their own, while families get trapped in slumdwellings without financial means to transition into safer areas with modern infrastructure. This compromises security, comfort and convenience for all aspects of life.
Accessing quality medical care in both routine and emergency situations requires significant money in today's Nigeria. Hospitals constantly run out of supplies, demand upfront payments before treatment, or overcharge insured patients. You also need funds for transportation to better facilities. If your money runs out during care, you risk being discharged regardless of condition. This could easily prove fatal for many illnesses.
For security and safety, those with more financial flexibility often install expensive security systems, hire private guards, build higher fences/gates, or move into gated communities meant to be safer from crime. Those without those funds have to take their chances being more vulnerable.
What about energy - do you want to rely on the national grid for sporadic electricity and fuel shortages? Or would you rather install solar options, generators, inverter batteries and stockpile petrol for your home? The costs are astronomical for self-sustaining modern power, lighting and cooking solutions. Most lower and middle class Nigerians lack these luxuries.
At this point, you may be thinking - "This all sounds so depressing and overwhelming! How can any Nigerian afford all these expenses for basic survival?" I absolutely understand the exasperation because these harsh realities are my lived experience and that of my community too.
The unfortunate truth is that consistently covering these escalating costs of living requires discipline, sacrifice, creativity and careful financial management. Here are some strategies that have helped my own family stay afloat with some sense of security:
Live within your means, not inflated expectations. This is clearly easier said than done with social media peer pressures. However, take an honest look at your monthly income streams and stick to accommodations, vehicles, etc. that fit your budget rather than splurging for appearances. manage expectations with your kids too about reasonable luxuries.
Have a financial safety net. Experts recommend saving a minimum of 3-6 months' expenses in case of emergencies like job losses, medical needs, etc. Even putting aside just 5% of each paycheck over time creates a fallback buffer for hard times. Look for low-risk savings/investment options to earn interest.
Develop multiple income streams. In an unstable economy, over-reliance on a single job income is very risky if situations change. Explore credible side hustles, passive income ideas, gig work and other ways to diversify your earnings beyond a single employer/business.
invest in assets rather than endless consumption. Look for opportunities to build generational wealth through real estate, farms, stocks/bonds and appreciating assets over purely spending all disposable income. Let assets and solid passive income work for your future.
Live minimalistically and below your means. By downsizing and avoiding excess luxuries, your income goes much further. Learn to maximize and maintain possessions over endless replacements/upgrades. Find affordable housing and transportation options versus splurging. Minimize conspicuous consumption.
DIY skills and grow some food. Get handy at basic home/auto repairs to avoid huge mechanic bills. Learn to produce honey, eggs, vegetables and small livestock for home consumption - it adds up greatly over time. Skills > bills!
Join money pooling groups. Family/friend pooled contributions can provide affordable loans without predatory interest rates. These funds help cover emergencies, education, occasions and more.
Optimize major expenses via negotiations. Don't be afraid to price compare and negotiate big costs like rent, school fees, hospitals and more. Vendors expect hagling as part of their client relationships.
Monitor budgets/spending closely. Invest effort into tracking household income versus where it all goes. Cut out any wasteful spending like cable, dining out frequently, and unnecessary luxuries. Make budgets work for your family's priorities.
Upskill constantly into new trades/technology. The ability to reinvent your income streams is crucial during unstable times. Take classes, train in new career paths, and explore remote opportunities that are resilient no matter the political/economic climate.
It can seem so daunting, I know. However, approaching money strategically and proactively enforcing discipline gives families the best shot at sustainable living conditions manageable hardship levels. Because unfortunately, the larger economic structures won't be improving affordability for the average Nigerian anytime soon.
Does this mean those without substantial incomes are destined to suffer forever? Not necessarily - but their journeys will involve far more risk and uncertainty. They may have to get creative with group economics, moving to lower cost-of-living areas, urban farming, remote work and more. Losing everything is a very real possibility for those without crisis funds.
Meanwhile, those with more establishment and resources are relatively insulated from worst-case outcomes - so long as they remain prudent with savings and investing. They have a head start, but certainly not guaranteed prosperity if financial planning is neglected.
The bottom line is, during times of widespread infrastructural and economic dysfunction like Nigeria experiences today, personal financial empowerment becomes key to shielding your family from the most dire circumstances. With foresight and disciplined management, you can ride out even the most turbulent storms of hardship.
There's no denying the path is extremely difficult, stressful and psychologically draining at times. Yet the alternative of helplessness and destitution feels crueler. Life in 2024 Nigeria demands that every individual make tough choices about marshaling their finances to create whatever stability and security is possible given the volatile national landscape.
Money alone cannot guarantee happiness or freedom from all struggles. But setting yourself up with a smart financial foundation buys your household more options, resources and insulation from the worst of societal dysfunction. For now, that's about the most any struggling Nigerian family can realistically achieve until larger reforms occur. Taking control over personal economics is a form of self-preservation.
