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Roaring Out of Recession: A Hive Naija Weekly Contest

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@salvadornkpara
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I'll be starting with a funny note in this my post. I was trying to demonstrate an incident to my wife and friend this evening and in the process of demonstrating the incident by raising my leg my slippers flipped out of my legs and the situation made my friend to laugh and fell on the floor. Recession is a constant thing or occurrence to every nation, although it might not come regularly, but when it comes it can sweep the nation upsidedown if the nation is not prepared ahead for it. In this post I'll be giving us the possible means of coming out of recession and surviving economic meltdown. Greetings from @salvadornkpara.

What's Recession? According to the Oxford language dictionary, recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. It's characterized by economic decline, hardship, downturn, depression, credit crunch, stagnation, stagflation as well as bust.Source

How to Come Out of Recession Based on the definition above, one will notice that one's a Gdp falls for 2 successive quarters then there's recession. However there ways in which one can survive during a severe recession. They include:

  • Establish a Budget and Pay Down your Debt Although it's very difficult to offset debts during the period of recession because salaries are being reduced and people are losing their jobs. One can follow this paradigm in order to pay his or her debts:

  • The first step to successfully paying down your debts is establishing a budget that accurately reflects the money coming into your household, and where that money is supposed to go. If you aren’t tackling your debt as aggressively as you could – or worse, adding to your debt – having a budget will help you identify spending areas you can cut back on so more of your money can go towards paying down your debt. Here are some detailed steps you can take to build a household budget, so you’ll be able to live within your means and manage your money better.Source

  • Create a Productive Friends Cycle Human capital development is one of the ways to help people climb the ladder of wealth and greatness. Investing in people helps you too have people to run to when you're in need. Everybody doesn't go into recession at the same time, so one could be helped by someone he had developed some skills for during recession time. The ability to place people in the right path through knowledge transfer and mentorship, could quickly bring you out of recession.

  • Cast Your Bread Upon Many Waters

Even the holy bible said that "cast your bread on many waters and after many days you'll find them". Investing in the right platform is very crucial to the investors and their families. Note that one can invest in an unproductive sector that'll not yield anything. This unproductive sector meeting with recession is doom. Knowing when to bear in any given situation is key to any investment. There's time for everything a time to bear an a time to bull.

  • Effective Savings A friend once said that every investment minded person or salary earner should save at least six months salary ahead. This is because it takes about four to six months for a sacked person to get another job. If the sacked person doesn't have enough savings, it'll be difficult for him or her to survive recession or the period of seat at home. It's also very difficult to sustain family in the same standard of living when the recession fully comes. Joseph in the bible told Pharoah to save during the seven years of plenty grains against the seven years of faming. You can be at advantage point to lend to others during the recession if you had enough savings.

  • Diversify your Income

Most of us are familiar with the saying “don’t put all your eggs in one basket,” and this adage could be applied to your source of income. Relying solely on a particular job for all your income has inherent risk, because if the economy tanks and you lose your job, you’ll also lose your only income and your ability to meet all your financial obligations.

Having multiple streams of income can really help. If one income source starts to dwindle – or gets eliminated completely – you have other sources to fall back on to help keep you afloat. Diversifying your income doesn’t necessarily entail getting a second job – in fact if your spouse is working in a different industry than you, you have some income diversity right there. However, if you’d like to stretch your wings and bring in some more income you can look into many different options such as renting out a room in your home, renting out a space in your garage, or going so far as to buy a revenue property and rent it out.

If you have a fairly flexible schedule you can consider getting a weekend job, and if you have particularly strong skillset or are developing one, you can look for ways to cash in on those skills. For example, if you’re a strong writer you can look into freelancing articles and blog posts, if you’re crafty you can sell your creations on Etsy, and if you’re handy around the house you can consider advertising your services on Craigslist. Don’t let these examples limit you, though. Any skill or talent your have could potentially be turned into a way to earn extra income.

https://www.mymoneycoach.ca/blog/money-saving-tips-how-to-survive-recession.html

Source In a bid to diversify my income as mentioned above, I'm into poultry farming, online and offline research, blogging like the hive blockchain. Someone might not have interest in what I like to do they can go into tayloring, buying and selling of goods and other aspects that'll grow their income higher.

  • Reduce Cost in one Area and Channel it to a Productive Area The idea here is to cut cost in some areas and increase cost in a profitable venture. One should concentrate on the family needs and not wants. It's not time to add to the fleet's of cars in your home. At least a family that has 5 cars in their garage should reduce it to 2 and the other 3 should be sold and the money should be invested into business that have high profit margin. Finally, there's tendencies for one to remain in recession if the person doesn't act wisely during the time of economic boom. In the 1920s the United States enjoyed economic boom that was not controlled because they thought that it'll also be there but suddenly came the great depression that almost crippled the United States. Everyday that passes by gives us signal to save, diversify our investment and are diversify our source of income. Our ability to understand these signals will help us roar out of recession. Thanks and God bless you @salvadornkpara.