What are the hallmark of downward economy? You might want to ask. From a layman point of view when the income of a country or individual is reduced, there is generally less to spend. Savings will also go down there fore the value or the net worth will go down
The Nigerian economy is currently on the brink because the income from crude oil export is on the downward trend due to the fall in the price of crude oil in the international market.
Nigeria will suffer from the disadvantage of being a dependant of a single product. The Nigerian yearly budget is powered by earnings from crude oil therefore whenever there is a reduction of price in the international market, the earnings would fall. The external reserve could also fall and the implications of such a fall is the government inability to fulfill its political, social and economic responsibilities.
Like a man who has to adjust his spending habits when there is little to spend, the Government has taken steps as an adjustment to weather the storm.
1. The Naira was devalued
2. Oil subsidy would be removed come next year ( 2015)
3. Interest rate would be increased
The effects of these measures could be far reaching as they all destined to cause astronomical increase in the cost of goods and services.
How will I cope? you may want to ask . The simple answer is, cut your coat according to your cloth and minimize waste
Cutting your coat according to your size require personal structural adjustments in every sphere of life, in which case you have to set your priorities and spend available funds on the essentials. The following tips would further assist you in coping with the downturn
1. Minimize your energy consumption
2. Plan your movement well in advance before setting out
3. If possible take public transport to reduce cost of commuting
4. Before buying goods, carry out your market survey to compare prices
5. If goods are too expensive for you, try second hand goods
6. Get involved in an enterprise that can fetch you some extra income
The above tips are just to open your eyes to see how you can adjust your spending habit to sail through the economic downturn. By intuition, you should be able to take off from there and ensure your own survival.