Welcome to the first newsletter in the month of June.
This week, we will be taking a break from the current wave of not-so-good news on the economic and investing terrain. This is deliberate because patience and self-control (or staying power) are 2 of some of the attributes an investor needs to have during times of economic downturn.
Today, we will be discussing some coping strategies for dealing with spiralling food prices and household expenses:
- Accept the new normal: all around the globe, there is the realisation and acceptance that prices are not coming down anytime soon. As such, the next best thing to do is to develop urgent coping mechanisms.
One of such mechanisms involves reviewing your priorities and budget to ensure that you are spending on things that matter to you.
For some people, it may involve cutting down on entertainment or social spending or even jettisoning a wardrobe change.
Mind you, it is not advisable to include forgoing savings in any way – the amount may reduce drastically which is acceptable in my opinion.
- Buy in bulk: Given the rate, at which prices of stable food items are changing (especially in Nigeria); it will not be a bad idea to stock up on non-perishable stable food items or even personal care products. That will help alleviate some pressure, especially for large households.
- Cut down (unnecessary) expenses: In my opinion, this certainly isn’t the time to keep multiple cable or internet subscriptions.
You may need to ask yourself if it is necessary to have Netflix and DSTV subscriptions at the same time.
You may even need to review your dry-cleaning budget along the way. Some items can be washed by hand or by a machine at home.
Whilst this may not amount to much, it will help free up funds for the essential expenses you can’t avoid or cut down on i.e. electricity or fuel/diesel costs.
- Some DIY isn’t bad at times like this: Home gardening and soap making are some skills that can come in handy at times like this.
For large households, some food items such as pap or yam flour can even be made at home. Not only are they cheaper, but they will even turn out to be healthier as you will be sure of the safety of the ingredients used.
- Spare a thought for the elderly and less priviledged: the harsh reality is that the brunt of the spiralling food prices is being felt more by the pensioners and those who earn less than $1 a day.
If you can afford to do so, kindly lend a helping hand in your local church or mosque. Also, try reaching out to your elderly relatives and neighbours.
Not only will you be accumulating goodwill here on earth, but you will also be sowing seeds of kindness for the future.
Till we meet again next week, please remember to spare some thoughts for the victims of the various attacks in Nigeria yesterday. Do have a productive week.