Why Do Most People In Nigeria & Some African Countries Earn Well From Paid Employment But Still Live Poorly?
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One of the reasons why people earn decent salaries in Nigeria and yet they still live poorly is because of these; a steady rise in inflation, the loss of value of the currency as a result of government policies, overdependence on a sole source of income, living beyond one's means and not having a projected calculation of expenses and of course applying scale of preference in other to economise resources at hand. In Nigeria people are hardly economisers, they follow trends, buy into the latest clothes, jewelries and spend money to impress rather than express relieve for their own needs and wants to an extent. Now a decent salary is meant to live well and when I talk I mean about ₦50,000 for a single person is quite decent and ₦120,000 for a married person with a child or two in a monthly basis is decent.
Nevertheless, people don't see a need to manage especially if they're earning steadily and many do not see a need to save especially if they're having some money to satisfy their needs on a daily basis. Being economically inclined helps you analyse trends and predict advantage or consequences of taking a particular course of action and that's what differentiates poor people from average people. For example some people make some decisions that would affect the financially however they do this unknowningly because they're not calculative. For example, In Nigeria, you'll see a poor person having close to 5 or 6 children while a person who is financially buoyant having just two or three in actual sense this makes it difficult for the poor person to get out of poverty no matter the increase to his salary.
Now people understand inflation and the danger to a person who buys and sells services and commodities but they hardly take time to weigh the effect on them in a short or long term. Another thing is that people don't understand to maintain financial stability if you're doing a real time job working in a firm or company then you need another means of income of which you control the narrative. For a person who owns a business it's of course easier to own one business and still thrive and live good this is because when you're buying and selling at the same time you'll suffer from the effect of inflation as well as enjoy inflation because you'll be increasing prices of goods and services and the effect of inflation wouldn't have to fall on you alone.
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However a person who works and gets paid for a fixed period of time will have the full effect of inflation hammering down on them while their salaries might increase let's say once in eight months, the rate at which inflation would increase will supersede any amount of money they'll get as an increment in salary. Thinking for oneself is easier but then having to think about a family, an extended family and being a bread winner who works in a company or firm will only make you poorer in a long period of time, making it impossible for you to save a percentage of your salary so as to ease an unexpected problems that arises without any warning.
It's imperative to understand that, being a real time entrepreneur with risks is far better than earning a huge salary in a company and why is this so? In entrepreneurship there's no limitations to how much you can earn infact it allows you to be innovative to grow your business as it accumulates in value with time. People don't have survival skills that can get them money. The country is unstable and covid-19 has shown that the only futuristic billionaires that will stand the test of time are only those whose source of income wouldn't be affected by things like covid-19, Inflation of fiat currency or even an unexpected draught or blight in business. One thing is, crypto stands to be that opportunity which people can benefit from. It's of course interesting to note that some African currencies are very volatile and storing wealth in it can make you poorer with time, crypto is the long shot but then I believe people in most African countries are not aware of this yet.
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My name is @Josediccus, a young Nigerian student who is a Vlogger, A Psychologist, Poet And Sports Writer/Analyst. I'm using my contents as a process to create shared meaning as well as create expressions through which people on/off hive can relate. I believe content is a process to be enjoyed and relished and I'm up for any collaborations in my field stated above. Cheers
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