All economic indicators have shown that economic conditions are going to be a lot tougher in the months to come. The level of economic uncertainties would gain momentum, as recession shock waves spread across the nation. The economic buffers from FG are yet to be rolled out against the impending economic problems. This means, you are all alone to fight this for now, even with less money to spend due to high inflation and growing cost of core basic needs like Transport, Drinking Water, Feeding, Rent, Clothing, Electricity, Waste-Disposal, Children School Fees and Healthcare. You will agree with me that there is need for a detailed PLAN to survive the approaching storm.

On this, I would like to relate and share my personal approach and strategies that i have taken already and the ones I would be taking towards tackling the looming recession. For me, I would be personally experiencing double recession because I have consciously put myself into recession mode long before now- just for two reasons (1) the issue of fixed salary for a very and too long period (2) my nature.

Also, it is important to let you understand my mindset, which dictates my financial planning & spending habit. I am a highly conservative, prudent person; I focus only on NEEDS (mostly basic needs) not FRIVOLOUSNESS. I love and enjoy taking my responsibilities serious. I believe so much in quality education, quality living environment, quality feeding and quality healthcare simply because i want to consciously raise my child(ren) better than how i was raised. I don’t party and i am extremely ‘old-school’ towards clothing/outfits and personal effects. I hope you now understand my idea of ‘double recession’ more clearly. 75% of salary is on quality basic needs month-in-mouth-out. Don’t focus on my boring life, pay attention to how you can tackle the impending recession. In the table below, you will figure- out how i financed all my responsibilities with flat, steady and regular salary.

The Need for Personal Economic Master Plan is Urgent
Let me first warn you that as an employee or salary earner, don’t underestimate the need for detailed financial plan. You will seriously need your Personal Economic and Financial Plan in place to quickly reorganise, readjust and reposition yourself before the impending economic woes fully gain momentum. If you don’t have one, please you need to have it NOW. Also, it is important you know ahead that the tide is already against, as you are treading against many odds and you will have less 'Real Money' and less Purchasing Power to fight this battle alone because of the impact of growing inflation rate, devaluation of naira and other regular deductions from your fixed salary. You are not earning N200,000 per month, your actual income is N137. 226 monthly. Table 1 below puts this in proper perspective.



What do you plan for?

The need to plan for emergency fund is extremely necessary during recession: Setting aside certain percentage of your income is very important Not only during recession, but it makes more sense during economic adversity. No matter how small, it is more necessary than important to have an emergency fund- even if you are still going to borrow, you are already half-way.

Let me relate how i manage my emergency funds for example. My emergency fund is diversified. It is always in T-bills and Dividend paying stocks only. I do as low as N10,000 monthly into T-bills and N10,000 into Stocks as well but occasionally, i do lump-sum. The beautiful thing about my emergence fund is that it retains value against inflation. The reality was dawn on me when my mother was on a sick-bed, the emergency funds and support of well-wishers helped me a lot in handling the initial deposit at the hospital, paying for CT-SCAN, MRI-Scan and series of lab-test. Then, I realised the usefulness and importance of emergency funds. Those with strong emergency funds have greater chance to survive a recession. See table 2 below for personal income planning



You need to plan your feeding with Daily-Food-Roaster: This allows you to eat healthy and have an helicopter view of your feeding cost at a glance, in which you can always adjust to suit your current financial status. It does a magic when you need to cut-down on cost or substitute. See table 3 below



Other Things you need to do along with planning
Need for passive income: Another source of income would help you greatly, any passive business that can give you at least 25% of your monthly income would be a great idea to explore this time of recession. Affiliate and network marketing are very good example. If you like to write or read, you may consider blogging to share your passion or knowledge. All these would not cost you more than your past time. For me, i put money in my wife's paper business occasionally. As she is selling, my money grows as well. The beautiful thing about this business is that dollar determines the price, as dollar appreciates against Naira, she adjusts price once her supplier adjusts price. In a way i still retain value of fund.

Readjust Spending Habit and leave within your means: The best way to avoid growing debt is to leave within your income and means. The main reason for this is simply because the prices of basic needs are not always stable during recession, they tend to go up often and this may lead to borrowing in if you have not disciplined yourself to leave within your means.

Reduce Expenses & Cut-down on debt
First, focus on your needs NOT want. I strongly suggest you reduce your debt, particularly the high interest debt. It is not advisable to go into recession with such debt, do everything possible to pay down your debt because rates/interest would swing northward during recession and that would result in a counter-productive situation as your monthly expenses would surge. I make use of no-interest loan a lot, you can make use of it to settle high interest loans. Islamic cooperatives/finance is remarkably and fantastically great in this area of no interest loan.

Learn how to negotiate, re-negotiate & use leverage
It is important you try to acquire negotiation skills, it will help you greatly during recession. Recently, I aggressively renegotiated my Daughter school fees from 300k to 236k in a New High School- I first renegotiated school-bus from 45k to 30k(to and fro), then later argued 15k for one-way since my house is just N100 away to school. I also asked for 2 instalment payment – cash-payment of N200k and 2weeks post-dated cheque for 36k. All this is just to re-align my cash-flow to meet my obligations. Throughout her primary school, i negotiated for monthly payment of her school fees with school. It is important you always negotiate to suit your cash-flow.

As you’ve read about my personal experience, I would also like to encourage you to share your experience with me on how you have been surviving in these times, the options you have taken and what more would like to know.

https://www.proshareng.com/news/Savings---Thrifts/Recession,-Personal-Income-and-Planning-/32239

really not funny...
I see my plans slashed coz of the recession and high costs.

Nice one op....I do all of dese.

I saw ds recession coming abt 4 years ago so I hv been on my grind.

Hope ds makes front page to educate ppl.

Well written.
Lalasticlala?

Lalasticlala. Front page pls

unite4real:


Recently, I aggressively renegotiated my Daughter school fees from 300k to 236k in a New High School- I first renegotiated school-bus from 45k to 30k(to and fro), then later argued 15k for one-way since my house is just N100 away to school. I also asked for 2 instalment payment – cash-payment of N200k and 2weeks post-dated cheque for 36k. All this is just to re-align my cash-flow to meet my obligations.

Tuition fees are negotiable?

Grammar

.

Very terse and concise information. Discipline and tough measures are imperative in tough times like these!

Recession here Recession there... Awon olofo

Ok

Nice one op

without planning one can not suvive in naija talk more of this recession

Nigerians face several conditions today that are sending many to food banks and soup kitchens for the first time in their lives, simply because they can't afford both food for their families and the costs of living in the modern world. Obviously, if you can't change the economy, you must learn to change your economy. To survive today, do the following.

1, Start Living Frugally

There are some things that are necessary but not important. Some are so important, but not necessary... If you say yes, sometimes your bank account must learn to say NO... For example, if the super-stores are getting tougher, switch to a lower shop down the road, or the local kiosk owners. If it has not expired, you can still consume it...

2, Can You Bring Home More Income?

Most of us are crying on spending alone without thinking on how to take the advantages of tough situations...we should also consider additional ways that can start bringing in more money, residually. For those of us who spend a lot of time on social media, e.g Nairaland, here's an opportunity to build a business, meet with reasonable people... talk less on politics, explore the business forum and stay abreast with the world. Majority of us here are victims of this... will never want to check into a forum that is a non celebrity, romance, or politics..


3. Stop Going Out

We must be willing to make sacrifices...For some of us, this is like the world coming to an end. But really there is life outside of the social scene, the weekend bars and nightclubs or restaurant outings that drain wallet's, including those ladies who are predators.. chose a new hubby and redirect your energy to the opposite. Cut costs and look back again each time your wallet says no

4 Pack the SUV

Every day I see people in my area jumping in their vehicles and heading off to work -- 20 to 30 miles away I'm sure for many of them actually wants to be bossy and look keeping up with the Joneses.. Take public cabs and cut cost. I know this might sound low to your reputation but sincerely most of the filling stations are not funny today. Try this for a month and compare it to when you drive down to work in your own car, you'll discover that you're really spending large amounts of money annually on transportation on private cars than the cabs.

5 Stop Spending Money

STOP -- don't reach for the phone and call the first person that comes to mind. Communications must be done with reasons... Calls is a spirit not a duty. Phones are meant for emergencies and nothing more. This is the obvious step to take. Often though we simply can't stop spending money. There's always something else that pops up. Especially with families. But look what happens when you simply run out of money. You stop spending. Purchases you felt compelled to make suddenly get delayed or put off or forgotten completely. And the world still goes around. You wake up to see another day. The world hasn't come to an end simply because you're broke that day and have no money to spend.

6. Stop Complaining
Anybody can be a CEO. Get engaged into something profitable. Engagement bypasses pessimism, says saggerston... Roll up your sleeves, stand up, explore for an idea, be it business or where you can be an apprentice, irrespective of your graduate qualifications... With time, when you do what you love, you will love what you do. Remember happiness is the key to success, success is not the key to happiness.

7. Don't Eat Off That Last Cake

I believe this is the time to start loving your job. There are usually no greener grasses on the other side of the field. You do not know how others on the other sides of the fence are walking on broken paths out there. We usually see it smooth. But ask them, you will understand really good.

You can't eat your cake and have it. The proverb literally means "you cannot both possess your cake and eat it". Once the cake is eaten, it is gone. It can be used to say that one cannot or should not have or want more than one deserves or can handle, or that one cannot or should not try to have two incompatible things. The case is true when you have no better opportunities in sight and will start feeling dumb to leave the current job. The streets is never friendly. Remember, "an idle mind is always the devil's workshop."

8. Pray......


Add your own, these are mine!

source: Me

olujaidi:


Tuition fees are negotiable?

Yes o.

Nigeria Jaga jaga...


it is well.


the hustle is real

It's more bad news upon news. When are we going to hear anything cheerful.

Too long to read.. Can somebody please consise or summerize this for me..

When aba boys enter programming.

In this hard economy that dangote lost $5.6b and still healthy, but I misplaced my 1k and my heart is doing me somehow.

We will al gonna turn into Arsene Wenger very soon

Very helpul post. Thanks Op, I only hope most of our family members (extended) will understand when they cal and we say we don't have money.

Nice one op. This is a great piece and I am happy I practice virtually all except one - Negotiation and re-negotiation.

After reading this, I called someone that I had a negotiation with yesterday on a job and had a renegotiation. I got another 12% discount!!!!

Thanks once again.

Thanks for this

Yes very true. Gf allowance is hereby slashed by 100% . If you don't want, goan find another guy.
I'm not working for you. Hommies gotta wise up, ladies gotta learn to be independent ,work their ar.ses out and eke out a living

This recession thing no be here. Imagine my pocket money has been reduced by 10%. Bet9ja dey Bleep up sef. Most part time jobs available are too demanding and at the end of the day no time for your books
.
Wetin man go do?

Rip

Impressive write up. However what would meagre salary @ earners do in a time like this? It is so pathetic that the government of the day is only playing lip service to social intervention.