Inflation: five ways to cope with high cost of living

Rising cost of living due to galloping inflation in Nigeria has continued to take a toll on many families. This is largely caused by the fuel subsidy removal by the government which has caused a hike in prices of goods and services across the country. An economic analyst, A.G Mukhtar, said that inflation, which is […]

Inflation: five ways to cope with high cost of living

Rising cost of living due to galloping inflation in Nigeria has continued to take a toll on many families.

This is largely caused by the fuel subsidy removal by the government which has caused a hike in prices of goods and services across the country.

An economic analyst, A.G Mukhtar, said that inflation, which is a persistent rise in the prices of goods and services, was caused by some factors in Nigeria.

Aside from subsidy removal, he listed factors responsible for the rise in cost of living in the country to include increase in tax rate  and high exchange rate.

He said that despite the enormous challenges the rising high cost of living posed to Nigerians, they can still devise some ways to navigate the situation.

Avoid too much spending

Mukhtar said that Nigerians should avoid spending too much without calculations.

He said, “Nigerians should try to stop spending unnecessarily. This will help to save more from reckless spending. Spending money carelessly and in a wasteful way may leave one with no means to pay one’s bills.”

Buy alternative goods

The economist noted that Nigerians should be buying alternative goods instead of spending much on luxury items.

He said, “Avoid spending on things that are frequently used especially if their prices skyrocket except if they are a necessity like payment of medical bills.”

Stop Unnecessary trips

Mukhtar said, “Unnecessary trips and tourism that may cause too much spending should be abolished so as to save for better things and meet unforeseen eventualities.”

Alternative source of income

He said that finding a lawful source of income other than wages, salaries or other compensation for employment would help a lot.

Investment

He said, “Nigerians should invest more on the profitable business from their income instead of reckless spending on non-profitable activities. This will help to ease the economic situation of day-to-day life activities.”