The International Monetary Fund has warned that we’re about to experience a higher level of inflation. In their words; “we expect one-third of the world economy to be in recession this year”. The IMF boss also cited the war between Russia and Ukraine, the recent spread of covid-19 in China, global inflation pressures, and interest rate hikes by major central banks as many of the reasons why economic growth will be 1.8% in 2023. If you ask me, this is hardly the kind of news we expected to hear just three days into the new year. It almost seems like we cannot catch a break. But you can survive a recession.
News of a worldwide financial crisis is never easy to hear, especially as we barely survived one in 2022. For residents of emerging 3rd world economies like Nigeria, news of economic crisis is devastating, to say the least. While nations of the world will all suffer significant economic consequences, they will not be on the same scale. History has demonstrated that advanced economies are more positioned to respond to crises than those developing economies.
Let’s examine Nigeria’s 2022 economic performance in detail. Nigeria went through a worsening economy in 2022. The country experienced a slew of troubling issues, such as increased insecurity, poor financial policy direction and implementation, a drop in private sector investment, restrictions on exports, and foreign investment. It got so bad that foreign direct investment data showed that out of 36 states and the FCT, only Lagos, Abuja, Anambra, Ekiti, and Kogi witnessed capital inflows. Lagos came in first, followed by Abuja, and Anambra came in third.
Enough of the doom and gloom, because that’s not what this article is about. This article is about staying atop the tide of recession so that all your prayers at your various religious houses during crossover don’t come to naught. Imagine praying to God about how you want 2023 to turn out, and then hearing about a disaster that is about to occur. Take this article as one of the answers to your
2023 prayers.
Every person is affected in various ways by the recession. We could observe how the cost of items continued to soar every week just from last year. We learned that major tech businesses were reducing worker numbers in order to save money. The number of unemployed people increased, while those who were employed saw pay cuts. Transport expenses, including air travel and road transportation, skyrocketed. Fuel costs increased, and there was a greater-than-ever shortage of fuel. Although a global
economic crisis presents harsh realities, don’t panic; you can survive a recession.
How do you prepare to survive a recession by making strategies to lessen the impact?
- Prepare for a potential Job loss; I know this sounds incredibly difficult, but it has happened to some people. Is there a possibility that it wouldn’t happen to you? absolutely. But what damage would it do to be ready in case it does? none. The greatest way to begin preparing for a loss of employment is by:
- Organizing your portfolio and resume. If it needs a little updating, do it right away.
- Create/Maintain an online presence. This would allow you to network and create strong professional connections, which would hopefully lead to a new position.
- Get your savings up. We could all use some emergency funds in times of trouble. If you can help it, saving a few bucks is one of the best financial decisions you can make for yourself this year.
- Be on the lookout for fresh opportunities. Remember how I said that everyone is affected differently by a global crisis? Let me give you an example: while some organizations may be intentionally reducing, others may be experiencing a downturn as a result of staff retirements, workers being depressed, or a variety of other factors. You can’t tell if you’re not looking.
- Make an investment in yourself. You can financially invest in yourself by looking for financially profitable investment programs. Financial Advisors have recommended a few investment strategies that will produce positive returns throughout a recession. Investing in stocks is not recommended during a recession; nonetheless, there are excellent investment areas such as healthcare, consumer goods, utilities, and food industries—these areas tend to thrive during economic crises. Do your research and find an investment plan that suits you best.
Another area in which to invest in oneself is education. The best course of action may be to return to school or enroll in an online course if you previously left school or, have a few degrees you still need to earn. Consider it from this perspective: Upskilling has never been detrimental to anyone. It doesn’t matter if it’s a digital or a practical talent you need to master. Just learn something; it can help you land a job during a recession.
Find cheaper options. It’s true that in desperate circumstances, extreme measures are called for. Although going through a financial crisis is awful, it won’t last forever. The objective is to survive and thrive while enduring the storm. Spending a bit more time haggling for goods, choosing less expensive consumer goods, and considering alternative solutions will help you spend less. The best quote to keep in mind right now is that you have ‘rice at home’. Stop patronizing fast food and start making your own meals. Put off making that large purchase. Always ask yourself, “Is it necessary?” Do I need this? Lastly, explore innovative activities that will keep you occupied at home and eliminate boredom.
Spend some time gathering information. It cannot be emphasized enough how important this part is. Crisis situations are frequently accompanied by confusion and panic, and as a result, people make irreparable, costly financial blunders. The desire to invest, sell, or liquidate is very likely to occur during periods of inflation because everyone is running helter-skelter, trying to make investments.
Without the proper knowledge, you can find yourself in a bind. Some people may feel the urge to sell their stocks out of fear or uncertainty. The best course of action at this time is to conduct adequate research or better still, consult with your financial advisor.
If you survived the economic crisis last year, you can survive this one. The good news is, you’re better informed than you were last year.
