It is no longer news that inflation in Nigeria is on the high side. In May 2022, the country’s inflation rate climbed to 17.7%, the highest in 11 months, according to data from the Consumer Price Index report of the National Bureau of Statistics (NBS).
While the economy struggles to find its balance, prices of items skyrocket on a daily basis. This situation is, no doubt, worrisome and calls for concern.
As we all grapple with these difficult times, here are 5 ways you can protect your income from inflation.
1. Use a savings account with a high yield.
This is a good way to protect your income from inflation compared to saving your money in your regular bank account which will expose your income to the negative effects of inflation. However, saving platforms vary according to the interests they accrue on your money. So choose the best that can work for you. Examples are Cowrywise, PiggyVest, etc.
2. Buy food in bulk.
To achieve this, you need to put an end to eating out, and invest a considerable part of your money in buying more foodstuff and cook them at home. It may not save you completely from inflation but it will save you a lot of money in the long run.
3. Attempt to save using a different currency.
In fact, this is the new trend, with many wanting to earn and save in dollars. The crave for dollars and other foreign currencies is at an all-time high now, and it won’t be bad if you join the trend. It’s advisable to keep your money in currencies that depreciate at a rate that is is significantly slower than the naira — if you want to protect it against inflation.
4. Develop a diversified investment portfolio.
Now, this can be difficult but it will help you a lot in this inflation-ridden economy. It is highly recommended that investing in real estate and short-term bonds tend to be inflation-proof. Don’t invest and earn from one asset, mix your investment portfolio, as one is never enough.
5. Have multiple streams of Income.
Ultimately, to survive inflation, you need to earn more and the best way to do that, in this time and age, is to have multiple streams of income. You might think it is hard but the digital world has made things easy as you can get online jobs and earn more cash. Freelancing jobs, blogging, etc are examples. In essence, the need for acquiring highly needed digital skills is important and will greatly help you to earn more during this period.