A lot of Nigerians desire to be wealthy but not many are ready to pay the price. Some believe that wealth is all about making more money and not necessarily being prudent with spending, an act many financial analysts describe as being wasteful.
As such, avoiding wasteful spending that could deplete one’s savings in an era of economic meltdown, is a necessity.
Instead of living an unsustainable life, experts are of the view that Nigerians could save as much as possible on avoidable expenses, if the suggestions offered below are followed.
EXPERTS’ ADVICE
Irrespective of your financial status, the Chief Executive Officer, Trev Global Consult, Mr. Segun Owolabi, advised all individuals to be prudent because it is a way to save more today. The effect, he said, may not be seen today, but if such habit is sustained, it could make huge difference over time.
“An important way to avoid waste is to make a financial plan, which can be daily, monthly or periodically, whereby you come up with a budget and make sure you work within the budget. Also, you can reduce wastage by cutting down frivolities like acquiring luxury items or switching off television sets or lights while not home and avoiding acruable electricity bills.
“One should look out for ways in our daily lives to cut out unnecessary bills. It would reduce your exposure to some spending. It helps to cut down electric bills and perhaps a lower cable bill if you downgrade your subscription, and it gives you more time to focus on other things in life such as an extra income business,” he said.
Aside from making a financial plan, Owolabi also advised Nigerians to avoid impulse buying, which he believes most people, especially low income earners are guilty of. According to him, cash intoxicates at times with a force that may want to push you to spend on things you can do without.
“You can avoid buying impulsively and save some money Avoid buying gifts for friends and loved ones all the time. Check out the gifts you have received over time, change the wrapper and rebrand before giving out to others or you make spectacular gifts for friends with your touch, especially consumable so that they don’t end up filling someone’s closet as junks. A lot of us keep gifts we have not opened for years in the store and still buy gifts for friends when celebrating milestone,” he added.RECALL
• Be prudent
• Cut out unnecessary and avoidable bills you can avoid
• Plan before you make any purchase
• Host friends at home with homemade food and not restaurants
Another expert, Mr. Ayodele Esho, explained that for every expenditure, consideration must be given for its necessity. Otherwise, such cost(s) will be classified as wasteful spending.
“Every expenditure is incurred on its merit and presumably for the benefit accruable. It is dangerous to continue to assume that all is well even in financial handling of expenses at this period. Unfortunately, many businesses will be hit by this consumption pattern because take home can no longer take most people home anyway and therefore has reduced spending patterns of people,” he said.
Instead of eating fast food or just nuking some prepackaged dinner when you get home, Esho added that you can try making some simple and healthy replacements that you can take with you. A few hours’ worth of preparation of food in one weekend can leave you with a ton of cheap and easy dinner or snack options for the following week.
“All you need to do is to package and preserve the food well. You can also invite friends over instead of going out because going out has a way of completely destroying both your food budget and your entertainment budget in one fell swoop.
“It is always cheaper to stay in with friends and come up with your own entertainment. Drinking more water whether in a refillable bottle or at restaurants means spending less money on beverages like soda, juice, and tea. Remember that tap water is not only just as clean as bottled water, it is also free,” he said.
