Surviving the wind of recession
With inflation at 17.78%, prices of food such as bread, cereals, meat, fish are constantly increasing. With no additional increase in consumer income, households will need to adopt a more frugal approach to spending.
We have highlighted a few tips to help you survive the recession.
- Have a budget before payday – and avoid spontaneous expenditure. A budget does not mean one should be stingy or anti-social. It just means that every area should be consciously planned for – including discretionary and miscellaneous expenditure.
- Budget expenses (including social engagements), and accrue funds in savings for major expenses like holidays and rent.
- Stick to your budget – this is easier said than done!
- Avoid Having Idle cash in your wallet –the Elite debit card is your friend.
- Invest in “assets” and do away with “liabilities” – do not be like banks that actively seek to grow liabilities! Define what for you is an asset…the latest leather sofa or a plot of land?
- Have a savings plan AND an investment plan. Savings plans should cover short terms needs or emergencies, while investment plans accommodate long term retirement needs.
- Tools like UnionKorrect, UnionGoal, Domiciliary accounts etc. are savings options while land, shares, voluntary contribution to pension plan etc. are useful investment tools.
- Invest in your health and well-being – exercise, eat right and go for regular medical check-ups.