Ways to cut expenses during economic crisis

2 months ago 21
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With high inflation rates across the world, especially in Nigeria, there is an urgent need for Nigerians to cut expenses, ANOZIE EGOLE writes

Many people waste a lot of money on unnecessary purchases made on impulse, subscriptions they sign up for but don’t use, and unused gym subscriptions, among others, according to Yahoo Finance.

Dining out frequently, especially on expensive coffee drinks, in bars and clubs could also add up to a lot of squandered cash, alongside gambling on lottery tickets or in casinos, as this effectively throws money away for the vast majority of people.

Even though these are ways one can adapt to ease stress, it is also very important one applies moderation in doing these things to give savings a chance and eat healthy as the economy keeps getting worse daily.

According to researchers, a healthy diet is essential for good health and nutrition. It protects you against many chronic non-communicable diseases, such as heart disease, diabetes, and cancer. Eating a variety of foods and consuming less salt, sugars, and saturated and industrially-produced trans-fats, are essential for a healthy diet.

The National Bureau of Statistics, in its May report titled ‘Cost of Healthy Diet’, said that the national average cost of a healthy diet was N1,041 per adult per day in May 2024.

The NBS added that at the state level, Ebonyi, Abia, and Anambra States recorded the highest costs with N1,225, N1,215, and N1,205 respectively. Kano accounted for the lowest costs with N898, followed by Jigawa with N899, while Yobe and Katsina accounted for N906.

“At the Zonal level, the average CoHD was highest in the South East Zone at N1,189 per day, followed by the South-West Zone with N1,160 per day. The lowest average cost of a healthy diet was recorded in the North-West Zone with N919 per day,” the NBS added.

According to NBS, animal-source foods were the most expensive food group recommendation to meet in May, accounting for 36 per cent of the total CoHD to provide 13 per cent of the total calories.

“Fruits and vegetables were the most expensive food groups in terms of price per calorie; they accounted for 11 per cent and 12 per cent, respectively, of total CoHD while providing only 7 per cent and 5 per cent of total calories in the Healthy Diet Basket. legumes, nuts, and seeds were the least-expensive food group on average, at 7 per cent of the total cost,” it added.

The data warehouse disclosed that the CoHD had been steadily rising over the past six months, since December 2023.

It reiterated that in May 2024, the CoHD was 32 per cent higher than N786, which was recorded in December 2023.

“It was also one per cent higher than the cost in April 2024, which was N1,035. The main drivers of this increase in CoHD are starchy staples, legumes, nuts and seeds, and animal-source foods. Vegetables and fruits, on the other hand, saw the smallest increase in price month-on-month,” it stated.

The apex data body explained that in Nigeria, CoHD is the minimum cost of foods needed to meet international recommendations defined in the Healthy Diet Basket, a globally relevant set of criteria that captures similarities across most national food-based dietary guidelines.

It stated that the HDB was created as a comparable standard to calculate and compare the cost and affordability of healthy diets across countries, the HDB is most relevant for countries where there is not yet a quantified national FBDG, like Nigeria.

With these recent realities in the hike of healthy food, it is obvious that there is a need for Nigerians to alternate their expenses and focus more on eating.

For Ignatius Chike, a trader, going to bars and clubs, which used to be his usual relaxation place, had been put on hold as the cost of alcoholic drinks and other things that go with hanging out had gone beyond the reach of ordinary Nigerians.

The Imo State-born trader now prefers sitting out with friends in a nearby bar in the street to going to a beer parlour of a club to save cost.

“These days things are very hard, I can’t remember the last time I visited a beer parlour. What I do now is to visit a shop close to my house, and buy some of these bitter drinks. Some of those bitter hot drinks are mostly cheaper and even give the same satisfaction that I get from beer,” Chike said.

Chike, who described himself as a lover of the good life and alcoholic drinks, especially beers, now limited himself to drinking once in a while as against his usual daily consumption.

“Before now, there is no day that runs by without me taking at least a bottle of alcohol or two, but now I drink on weekends and it is no longer daily,” he said.

The trader said that around three years ago, he spent between N2,000-N2,500 on a carton of beer, and spent over N5,000 to buy the same product.

“So, I have to advise myself. And my landlord has also increased his rent, so you find out that you have limited resources to take care of so many expenses. So it is a call to save and eat healthy,” he added.

However, here are some of the things to avoid in a bid to save costs to ensure that they eat well and live healthily.

Unused gym membership

Being a member of gym facilities comes with a cost and most times, at a high cost. Some come with a minimum of N2,000 per day, depending on how standard the facilities are and the location.

And a lot of Nigerians are fond of registering in gym centres and fitness outfits even when the nature of their jobs may not allow them to utilise the facilities properly. So in a bid to save cost, one should consider not registering in gym centres, especially when time may not permit one to utilise it properly or patronising cheaper ones.

Lottery and gambling

Take it or leave it, gambling, especially betting, has eaten deep into the marrows of Nigerians of all ages and genders. Some Nigerians have gone so far that they are ready to bet their feeding money. In a bid to save and eat healthy, there is a need for Nigerians to stop gambling and, if possible, the patronage of betting centres.

Fancy coffee

Visiting coffee shops once in a while is cool, at least to sit out and meet some friends but it is also advisable for Nigerians to learn how to start making coffee at home instead of visiting coffee shops, all geared towards minimising cost and eating healthy.

Dining out

Dining out once in a while is cool, at least for recreation’s sake but making it a regular thing is not advisable to cut expenses. It is more healthy and cheaper to eat at home than to dine out. So to save cost, it is advisable.

Unused subscriptions

Findings have shown that so many Nigerians subscribe to channels they may not use until they expire. Some constantly go for a full package of paid subscriptions, which normally come with higher pay even when they won’t have most of the channels till the end of the month.

If you are to overcome these habits and money gulpers, you will enjoy financial freedom despite the current economic lull.

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