A financial expert has hinted at ten workable tips capable of helping Nigerians stay afloat during the recession.
He noted this earlier in the week, during the two-day financial training organized by the Nigerian Army School of Electrical and Mechanical Engineering at Auchi in Edo State.
According to Segun Aremu, the lead Financial expert and coach, the recession period requires managing personal and corporate finances and demands careful planning and strategic decision-making.
He noted the workable solution and tips include;
1. Creating a detailed budget outlining income, expenses and prioritising essential items.
2 Exploring multiple income streams to reduce reliance on a single source of income. This could include freelancing, part-time work, or passive income streams.
3. Building or bolstering an emergency fund to cover unexpected expenses or loss of income.
4. Prioritising paying off high-interest debt and negotiating terms if possible. Avoid taking on new debt unless necessary.
5. Identifying areas where expenses can be reduced without sacrificing essential services or quality.
Others include;
6. Reassessing investment portfolios to ensure they are aligned with risk tolerance and long-term goals. While considering diversifying investment to minimise risk.
7. For businesses, negotiating payment terms with creditors and suppliers to manage cash flow effectively.
8. Consider consulting with financial advisors or accountants for personalised guidance tailored to your specific situation.
9. Keeping a close eye on cash flow for both personal and corporate finances.Implements strategies to improve cash flow if necessary.
10. Staying updated on economic trends and government policies that may impact personal and corporate finances. Adjust strategies accordingly to adapt to changing conditions.
Speaking on the philosophy underscoring the two-days intensive financial training, major-general Oladele Arogundade, the commandant of Nigeria Army School of Electrical and Mechanical Engineering (NASEME) Auchi Edo State, said the global recession and its attendant effects calls for proven financial intelligence and strategies to stay afloat. Hence his decision to seek expertise and insight in terms of capacity training.
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“The world is in recession, but even amid the recession, people are making money and that is why we call for this lecture so that it is not just about collecting salary and maybe using up the salary. There is a need to save up some of the salaries to invest some of the salaries, and we know, that this is not one of the areas of specialty and that is why we brought in a resource person from Lagos to come and teach us on how to manage money, make money and also invest and multiply money.
Speaking Aremu, who traced and pinpointed the likely causes of the current economic challenges beveling the country, noted that removal of subsidy on PMS when refineries are not yet up and running to capacity, corruption which has led to misappropriation of government savings, and inefficient spending of government, lack of political will to curtail the leakages in the system over time. Others include; insecurity, lack of enough subsidy, infrastructure, and exchange rate issues.
These, according to him, bring about an increase in the cost of production for manufacturers, the cost of groceries, low purchasing power, and negative real returns among others.
He however, charged the participant with creative thinking.
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