Dealing With Rent, Other Bills Increase. Here Are Smart Financial Moves to Make
posted on Feb 3, 2022
Here's how to navigate the rising cost of living
No one likes increase in bills, but landlords, schools’ owners, and even artisans selling at the markets often increase rent, school fees and cost for goods to keep up with maintenance costs, cover repairs, and cope with inflation. You can’t blame them.
While the reasons for the increase may be fair, it doesn’t make it easier on you – the tenant, parent, or customer at the market. Especially when juggling limited income, budgeting, debt, and other expenses, it can be tough to figure out the steps you need to take next.
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Recall that Nigeria’s inflation rate rose to 15.63% in December 2021. To put this figure in context, the World Bank has said Nigeria may have one of the highest inflation rates globally in 2022, with increasing prices diminishing the welfare of Nigerian households.
This reality often gets many people thinking about how to go about dealing with the rising cost of livelihood – which according to the World Bank report, is not slowing down anytime soon.
Luckily, as a financial partner that is concerned about the wellbeing of her customers, we have a few recommendations that can keep you financially in charge – regardless of which direction the economy is headed.
1. Increase Your Income with A Side Hustle
If you have a 9 to 5 job, it is perfectly normal to have another stream of income, and it does not make you a disloyal or greedy employee. Due to the economic reality everywhere in the world, your needs automatically swell into an oversize of your monthly salary.
Side gigs are the method of making additional income for yourself. Though the money earned from the side hustle may not instantly make you become wealthy, it will enable you to take care of your basic needs and reduce financial stress.
The internet has made everything even easier. You do not have to physically juggle between two (or more) jobs and/or business(es) because you can easily score a side hustle and meet its demands from the comfort of your home.
2. Negotiate Everything
As the prices of things skyrocket, negotiation skill is probably one of the hottest skills to have now. The idea of negotiating a lower price is often something shoppers shy away from.
Whether it's the fear of rejection or embarrassment, negotiating is rarely used as a way to save money. Well, we’re here to tell you that if you know the competitive cost of what you are looking at buying, and have the proper negotiating strategy in place, it can be successfully done.
Everything can be negotiated; from rent and school bills to your new car and even groceries, if you have a strategic approach, you can get a better deal.
Negotiation doesn’t only mean getting reduced prices, it could also mean getting more convenient payment periods. Instead of paying rent per year (in lumpsum), you can get a deal to pay per quarter or half year while you have funds to settle other financial needs.
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3. Takeout a Personal Loan
A personal loan is a really straightforward way to fund anything, including a holiday. You borrow an amount, which you receive in your account as a lump sum, and make monthly repayments (usually via direct debit straight from your bank account) until the balance is repaid.
If you’re like most people, you’ve got a major life event planned for 2022. Perhaps this is the year when you finally travel around the world, or start that building project or get married and start a family, or change that rickety car? A personal loan can make all of these dreams come true.
There’s no limit – to what you can do with the proceeds from a personal loan. Pay lingering school fees; renew rent or move to a new location; go explore Europe, Dubai or whatever exotic location you’ve always wondered about; plan your dream wedding on the beach. With payments that can go from 3 to 12 months, there’s a way to afford the dreams you’ve put off for too many years.
4. Borrow Money from Friends or Family
We saved this one for last because it really should be a last resort. While borrowing money from friends and relatives may be a quick fix, it can lead to some adverse consequences.
When a loved one lends you some cash, it can put a strain on your relationship—especially if you don't pay the person back quickly.
According to an article in Psychology Today, unpaid loans can lead to lingering bad feelings between the lender and borrower.
If you plan on borrowing money, it's probably best to draw up a contract stating when you will begin to pay back the lender and if you will also pay interest on the money borrowed.
Closing words
While the year is still fresh, go ahead, toast to the new year, make those resolutions, dream those dreams. But don’t let time slip by until 2022 becomes just like the other years.
Make a vow for a new you and a new financial promise, that no matter the economic pressure, you will take the necessary steps to keep your dreams alive. If you feel overwhelmed, contact Page Financials to speak to an experienced financial adviser, and find out how a personal loan can help make this year your best year yet!
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