Every now and then we have new buzz word emerging on our economic landscape. Not too long ago it was global economic downturn; though a bit far off because it was global we soon started getting the ferocious jabs that sent our economy on a downward spiral. Need I say that this was after many vocalized pretenses that our economy ‘dey kampe’

Today, the ‘R’ word must be said with caution because it seems so contagious. The word recession seem to have assumed a larger than life meaning in Nigeria. But what is recession or rather why do we have recession? My simple explanation is that recession occurs when we spend what we are supposed to save and invest in times of plenty. This might seem so simplistic but all the associated grammar to the definition of recession point simply to eating tomorrow’s meals with today’s and when tomorrow comes there is little or nothing to eat. Recession is a period of economic decline during which trade and industrial activities are reduced   (Concise Oxford English Dictionary)

Now how do I survive the recession? People have proffered many tips from cutting back on non-essentials to doing away with some frivolous impulse spending. Some have even suggested to themselves that committing suicide is the only way to survive the current recession. But I like to borrow the popular saying that when the going gets tough it takes the tough to get going. I know you are one of the toughs hence I am sharing these few tips with you and hoping you find the strength in them to not only survive but thrive in these seasons.

  1. Prepare for the effect of recession– job losses are part of the deal. So ensure you upgrade your CV and be on the lookout for job openings.
  2. Create a budget and follow it. Budget is a great tool for managing your money. It gives you a clear picture of where your money is going and help you stop leaky pockets.
  3. Create an emergency fund. If you don’t have an emergency fund created before now, you will do well to consider it, as many unexpected situations and circumstances may come your way requiring finance. Simply take part of your savings and put in your emergency fund to take care of exigencies
  4. Do the obvious – cut down on expenses. This is obvious as inflow may remain same or reduce while expenses are on the rise. Cut down on eating out, phone bills, social visits, aso-ebi, etc
  5. Consider accommodation in cheaper secured community. This might not seem too necessary if your accommodation is not more than 30% of your income but when you have to deal with a pay cut, it will be wise to consider a cheaper alternative
  6. Increase your income – use what you got. You can increase your overall income by engaging family members or tapping into some skills or talents. Entertainment will sell any day. Holiday job for the children will remove some burdens off you as well
  7. Don’t forget to treat yourself well – avoid recession depression. The attendant cost of healthcare for recession induced depression is not what you should add to your already lean finances

Above all, always remember that economic recession comes in circles of about eight years or more, and you can always beat it by living below your means in order to save and invest for the uncertainties of the future. Simply living the same way you are living now after the recession will ensure that when another recession comes calling, you will only be hearing about it and it will not affect you adversely.

Enjoy the ride.