Let me quickly share what has been a burden upon my heart throughout this week. There is a lot of confusion in the nation as a result of the economic challenges and I believe there is a need to address this. What do we do at a time like this and how can we thrive in a depressed economy?
NB: This post was first written and shared on our church platform on March 1, 2024. Hopefully, it will be a blessing to you too. Read on.
Isaiah 8:12 MSG
God spoke strongly to me, grabbed me with both hands and warned me not to go along with this people. He said: “Don’t be like this people, always afraid somebody is plotting against them. Don’t fear what they fear. Don’t take on their worries.”
You can’t afford to be afraid like others are. Your mindset must be completely different. We do not deny the facts on ground but our reality can be different.
So here are a few suggested tips on how to handle this period:
1. Get relevant information
Try to understand the economic issues and get as much information as possible.
You cannot afford to be a novice or be oblivious of what is going on. The more information you have, the better prepared you can be.
Let me summarise key economic decisions taken recently and the implications:
- Interest rates are going up so there will be reduced lending to SMEs by financial institutions. Loans are going to be more expensive.
- Consumer spending will decrease as government also tries to increase the yield on their instruments to mop up excess liquidity.
- Efforts are on to make the Naira gain value.
Be interested in what is going on.
2. Practise frugality
Watch your spending. If it’s not important, it’s not worth buying. Cut down on your expenses. If you can avoid borrowing, do so.
3. Save more
Save as much as you can. Put money aside. Cash is still king. Savings will help you when it rains. A depressed economy should make you save more.
4. Look for opportunities
Some companies or individuals will not be able to cope and will fling assets. You may want to take advantage of this but you can only do this if you have savings. Put your ears on the ground.
Watch your spending, cut down on your expenses and increase your savings. A depressed economy should make you save more. Share on X5. Invest in government bonds, treasury bills, etc.
Rates will climb. Use this to hedge against inflation.
6. Consider stocks and shares
The CBN Governor is going to recapitalise banks. The devaluation of the Naira has devastated balance sheets. Many banks are preparing to come to the market to raise funds. This is a good time to pick up good ones. Consult your stockbroker.
7. Leverage on the economic fiasco for your business
If you run a professional services firm as a lawyer, accountant or tax professional, there are emerging opportunities. You can find opportunities in the bank recapitalisation project and others. Network and latch on.
8. Export and opportunity to earn income in foreign currency
If you can earn in dollars, please do. Can you monetise your YouTube channel or your contents? Can you send food abroad? Do some research, get trained and look for credible contacts.
9. Don’t rush to invest
Anytime there are economic pressures, people come out with various spurious investments. They exploit the desperation of people. Be careful. Don’t invest in what you don’t understand.
A fool and his money are soon parted. Pray before you invest. A way that seems right to a man might not be the right way. (Proverbs 14:12)
10. Diversify your income
To diversify is to look for additional streams of income. What else can you do to earn additional income? Can you write? Photography? Content marketing? Farming behind your house? Sell cold drinks? Do Uber? Do something in addition to your main job.
11. Ask God for fresh ideas
Pray that God will open your eyes. When Hagar thought the end had come in Genesis 21 and her son was going to die, God opened her eyes to see a well. May the Lord open your eyes to see the well of opportunities around you.
12. What do you have that is truly valuable?
I need you to ponder on this. It is very critical to have something of value that can be exchanged for another value in a depressing economy.
In Genesis 47 during the famine in Egypt, people traded their horses and belongings for bread. When the belongings were exhausted, they sold their land to Pharaoh. Work on being valuable so you can be relevant. Develop a skill set that will be in demand constantly.
What do you have that is truly valuable? It is very critical to have something of value that can be exchanged for another value in a depressing economy. Share on XOne way to pull out of these challenging times is to pool together. Join a good cooperative society if you can identify one. You can get soft loans at cheaper rates to fund your business or contracts.
Buy food in bulk together with folks at work and share. Drop your own car and share a ride with another person and alternate this from time to time.
This is just for a short while.
I will not round up without admonishing you not to forget four critical things:
1. Never forget that God is your Source
In all of these things, keep looking up to Jesus. Your job is a means and not your Source.
2. Keep tithing and giving
Don’t be deceived to abandon a covenant anchor. That’s what tithing and giving regularly is.
3. Serve diligently
Serve the Lord more than ever. Be diligent in your service.
4. Mind your confession
Be careful what you say. You will experience anything you say.
Let me end this by giving us a scripture to encourage all of us. This shall be our own reality, even in a depressed economy. We will grow in the midst of these challenges. We will prosper.
Genesis 47: 27
And Israel dwelt in the land of Egypt, in the country of Goshen; and they had possessions therein, and grew, and multiplied exceedingly.
Happy new month!