Things are hard. The value and purchasing power of our currency (Naira) is badly eroded. When will this hardship come to an end? This is the question on the lips of most Nigerians and no one has a convincing answer to this pressing question; not even the current regime’s economic team. Some states and Local Governments in Nigeria have not been able to pay staff salary for the past six months and some for more than six months. We currently have economy wide decline in national output, income and employment. Things have become extremely hard for the working class. Unemployment is at its highest level. All these are pointer to the fact that the economy is in recession.
During ecoomic recession, companies fall short of the required sales, patronage, contracts, deals and return on investment needed to meet the needs of key stakeholders such as employees, suppliers, owners and investors. Many organisations are struggling to pay salary and have to result to mass layoff.
The price of essential goods and services are rising while recession lasts but workers salary remain the same. The rising cost of goods and services make workers poorer during economic recession.
There are many strategies that could be employed by workers to stay afloat in a time like this. These strategies if well marshalled can help workers navigate through economic recession and come out clean.
Firstly, as a worker, you must have a realistic budget for all expenditure. Zero tolerance for impulse buying must never be compromised once your budget for miscellaneous expenses is exhausted. Your income and expenditure must be properly analysed with emphasis on all essential cost/expenses. For example mandatory expenses such as transport or fuelling cost, feeding cost, water and electricity bill, Children School fees (if married with children) must be worked out. You must never exhaust all your income in any particular month, no matter how tight things may be. Some expenditure must wait for the following month. There must always be a ceiling to your monthly expenses.
Savings is a must. You must set aside a minimum of ten percent of your monthly income at a time like this. The reality is that most staff hardly save a fixed percentage of their income on a monthly basis. If you are in this category, the time to start is now; never wait for the recession to be over. You may think that pending expenditure is more than your income and so you cannot save. This is the experience with many people and even Countries. Open a bank account for your monthly savings. The fixed percentage of your income meant for this purpose must be deducted and all planned expenditure must be based on what is left. This percentage which must not be less than 10% of your monthly income must be invested wisely once it has grown reasonably. Never invest your savings in fictitious money spinning scheme that promise 30% or more return on investment without a rational justification. They come with high risk.
Think of ingenious ways of reducing current expenses and cost profile. Is it cost effective to drive to work or use public transport? Can you collaborate with a friend to reduce transport/fuelling cost? Are there good Schools in the neighbourhood that you can move your Children to instead of the current expensive Schools they attend provided qualitative education is not hampered? Think. Think and cut wasteful spending. You and your spouse can handle household shores like dry cleaning and gardening to save money and even exercise your body. Budget for eating out and for visiting Pepper Soup joints should be pruned or eliminated until economy improves.
Family planning could be a temporary measure. This is a time you need to discuss with your spouse on the need to delay child bearing as a temporary measure. Do you currently have two or more Children? It is high time you consider having a break until things improve. I know this is not good news for Medical Practitioners but this is a reality we must all face. The cost of CS in any good Hospital is not friendly. As a fixed income earner it is good to delay having more children until things get better.
Recession is a time companies hardly engage new staff but some still hire new hands to replace vacancies created by transfer, resignation, death and promotion. This is a time to look for better opportunities most especially if there is possibility of imminent layoff in your company. Do not wait until you are thrown out of job; start looking for opportunities elsewhere. Use existing network to your advantage.
This is also a time you can think of having multiple streams of income. Think of what you can do to earn more in order to support your fixed income without affecting the productivity on the current job. This decision should be taken after due diligence and personal feasibility study.
