Nine Ways To Narrow Down Expenses Amidst Economic Challenges

ENUGU, Nigeria (VOICE OF NAIJA)- As Nigeria grapples with economic hardship and many struggling to make ends meet, many are forced to make difficult choices between basic necessities, leading to increased poverty, hunger, and frustration among the population.

With soaring inflation and poor financial management, the purchasing power of many Nigerians has significantly decreased. 

A report by the National Bureau of Statistics (NBS) in 2022, showed that 63 per cent of persons living in Nigeria, equivalent to 133 million people, were multi-dimensionally poor. 

According to NBS, the National marginal propensity to invest is 0.257, indicating that poor people in Nigeria experience just over one-quarter of all possible deprivations.

VONa reports that, a businessman at popular Holy Ghost Market in Enugu, Mr Uchenna Ofor, emphasizes the need for a saving culture to combat poverty. 

He said, “A lot of us in this country do not believe in saving. We don’t have a saving culture; we believe that whatever we get must finish before we can hustle for another one. 

“And until that mentality is changed and we do more of savings, poverty would still be in the country.” 

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Also, a civil servant who gave her name as Oge, on a contrary, said there is no way one can cut down expenses as everything is times three in the market now. 

She said, “At the rate we are going, there is no way you can narrow down your expense because the price s of things in the market is more than 300nper cent greater than your salary. 

“Take rice for instance, a paint or rice is more than N6, 000 and for a family of five, if you buy it, it will not last up to two or three days and you are being paid N30,000 for the month. If you remove N5,000, N25,000 will be remaining. You cannot eat only that rice for that week, then you decide to buy beans, the cost of beans now is N8, 000,which is over 400 per cent increase from what we bought it in December. 

“So, there is no way a civil servant can narrow down his expenditure, it is not possible. We are at the receiving end of this suffering, the government officials don’t seems to care. If you enter the streets now, you see people murmuring.” 

However, here are ten possible ways to cut costs and save money:

1. Eat out less: Consider taking homemade meals to work instead of buying expensive fast food. On average, a meal at a fast food joint could cost around N2,000 per plate. By taking homemade meals, you could save up to N30,000 in a month or N360,000 a year.

2. Consolidate entertainment: Focus on a single entertainment channel, like internet access, instead of multiple subscriptions. This could include satellite television services, Netflix, internet subscription, and Iroko TV.

3. Don’t try to impress: Live below your means and avoid overspending to impress others. Wealthy people live well below their means, and you should too. Remember, the art of living easily is to pitch your scale of living one degree below your means.

4. Don’t spend what you haven’t earned: Avoid spending based on expectations, and focus on your current needs. Don’t base your current buying decisions on expectations like salaries being paid by month-end, a windfall hitting your bank account, or a promised cash from a friend.

5. Be mindful of clubbing expenses: Avoid overspending on overpriced drinks and food at clubs. Clubbing can be a great way to unwind, but be mindful of your spending. Consider splitting bills with friends or finding alternative hangout spots.

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6. Don’t keep huge cash in the bank: Consider high-interest savings or investments to make your money work for you. With high inflation and low interest rates on savings, your money may not be working efficiently in the bank. Consider moving your money into high-interest savings or finding a small business to invest in.

 7. Automate your savings: Use platforms like Cowrywise to set up automatic savings and earn returns on your money. Automated savings can help you rise above the temptation of spending on “wants” and make saving easier.

8. Use public transport: Consider using public transport instead of driving a car, which can save you money on fuel, maintenance, and parking.

9. Shop smart: Compare prices and look for discounts before making purchases, and consider buying second-hand or refurbished items instead of new ones.

By adopting these strategies, individuals can reduce expenses, save money, and achieve financial freedom despite the economic challenges. 

Remember, saving is key to combating poverty, and it starts with making small changes in your daily life.