Rising Cost of Living and Boosting Living Standards

Image

By Timi Olubiyi, PhD

The rising cost of living is impacting globally but differently and it is clearly evident that expenses and bills continue to rise steeply. The cost of food, household consumables and other essentials has skyrocketed in recent times from Cairo to Botswana, Delhi, Shanghai, London, Houston, Mexico City, Johannesburg, Mumbai, Dublin and Manila, name it. This price hike has been on the increase as part of the consequences of the novel coronavirus (COVID-19), and this continues to shrink the available disposable income of the majority altogether.

In the Nigerian context, a loaf of bread that was N350 in 2020 is now about N700, a 100% increase in two years. Similar percentage increases are in the cost of flight tickets, health care, rents, diesel, cooking gas, a bag of rice, a crate of eggs, a kilo of chicken or turkey and many other essentials due to inflation, yet income has remained the same or even less. Nothing is easily affordable, and everything is out of reach of the masses.

Given the country’s current situation and that many people have not seen a growth in their income, this has resulted in reduced or no savings, increased frustration and dissatisfaction in fulfilling basic demands amongst many. There is always the possibility and anxiety of losing jobs or businesses folding up regardless of the length of service put up, experience acquired, or available connection, and these consequences may even be more severe.

Employers, in fact, are hesitant to implement any wage increases for economic reasons. Inflation continues to have a severe negative impact on man’s mental, emotional, and physical well-being, as well as on marriages and livelihoods.

Currently, even with a steady, regular salary, living has become costlier with heightened uncertainty, high inflation, and weak purchasing power, especially for the masses including civil servants, entrepreneurs, and small business owners.

As a result, one of the ways to have protection is by diversifying sources of income and having multiple streams at this time. You have multiple bills; why not have multiple streams of income to support the inadequacy.

Therefore, in addition to salary or business income, it is important to source other income avenues to satisfy the rising needs, poor business performance and inflation. Because if financial capacity is weak and daily expenses continue to rise, individuals, businesses, and even households will be threatened with sustainability. Therefore, there is a need to take action because having multiple streams of income has proven to be priceless.

According to my observations, the majority of people and homes in the country rely solely on earned income, be it salary or daily income from a business, and they are always hoping that nothing bad happens. It is critical to understand that if the salary is the sole source of income, you are on the verge of financial pressure.

With the high inflation, unemployment crisis, and unstable economy, having many sources of income may help spread the risk and guarantee that homes and businesses are stable and financially protected. We live in a world where one source of income is insufficient and becoming increasingly unsustainable. If you ask me, having multiple sources of income is no longer a luxury; it is a necessity.

To be safe, it is never rational to depend on a single income source, full-time job, or a single market. Remember, change is the only constant thing in life, and this change happens rapidly in this period and is always unpredictable. Living on paycheck-to-paycheck, can severely affect mental health, increase anxiety, depression, stress and many are unaware of the implication on their health.

Consequently, having multiple sources of income is the best way to protect yourself, your company, and your family against drastic financial change. The tools for generating these multiple streams of income are readily accessible on the internet or by engaging a professional. We have greater access than ever before to information, people, ideas, and opportunities with social media, so tap into this. If the average billionaire or millionaire has more than one way to make money, it is important for professionals and business owners to think the same way and have stable passive income streams in order to stay on top of financial and economic woes.

While active income will require your full attention and effort, like being available from 8 am to 5 pm daily, passive income is generated with no or insignificant effort and attention; it can work while you sleep. So, to complement active income, passive income such as investing can generate income through dividends, interest, and return on capital.

Depending on the market and your financial circumstances, investing in real estate might provide you with high returns and rental income. But if you cannot construct to generate rent, acquire a piece of land and protect it; no matter how far away it is, it will rise in value. If you have years of experience in your field, you can start giving consultations or guest lectures as a means to earn another stream of income from your regular job or business.

Another reliable way is by acquiring assets that can generate consistent and steady cash flow. Looking inward might just help as well, talents, abilities, and passion can be used to create potentials that can give income streams.

Clearly, research has shown that having multiple streams of income as a plan aids retirement and provides the necessary comfort in old age. Hear this: if a solid retirement plan is your goal, savings alone will be insufficient; instead, the objective should include developing numerous streams of income sufficient to replace your principal active income (salary). The main benefit or advantage of having multiple streams of income is that when one stream is challenged or things are very volatile, there is a backup for extra income to attain financial stability. That can give the necessary hedge against uncertainties in a business as well as during illness, and disability of the entrepreneur.

In conclusion, it is reasonable to live below your means to make room for savings and then investment, no matter how little it helps along with a side hustle. Relying on a salary or daily business income alone is a danger at this time. In an environment where job loss and unemployment are chronic, the decision to create multiple streams of income and secure financial stability is expedient. However, do not let your side-income streams put the primary and full-time job or business at risk unless you can survive without it. Good luck!

How may you obtain advice or further information on the article?

Dr Timi Olubiyi is an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria. He is also a prolific investment coach, seasoned scholar, Chartered Member of the Chartered Institute for Securities and Investment (CISI), and the Securities and Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email at [email protected] for any questions, reactions, and comments

Share
Related Stories
Image
13-March-2024

How Inflation is Changing Consumer Behaviour

By Timi Olubiyi, PhD Small businesses and consumer goods firms are facing heavy disruption in their supply chain and operational costs due to inflation, currency risk, removal of fuel subsidies leading to a significant increase in energy costs, and scarcity of foreign exchange (FOREX). In recent times revenues and business forecasts are set to suffer short-term pressures, declines and low or no profits. Because the Nigerian economy is largely import-driven, the unstable foreign exchange rate continues to generate higher import bills for many of these companies. Consequently, this results in a significant rise in the expenses associated with production and

Image
17-March-2024

Nigeria’s Forgotten and Fallen: Power, Politics, and Fame

By Prince Charles Dickson, PhD In Nigeria’s complex socio-political landscape, there exists a phenomenon often overshadowed by the glitz and glamour of political power and fame—the plight of the forgotten men. These individuals, once wielders of influence and authority, find themselves relegated to the sidelines of society’s collective memory once their time in the spotlight fades. This essay explores the fallacy of power, politics, and fame in Nigeria, emphasising the transient nature of these constructs and the tendency of Nigerian politicians to fade into obscurity once they lose their grip on power. Power, in its various manifestations, is often perceived

Image
26-February-2024

The Plateau Multi-Door Courthouse Tori

By Prince Charles Dickson PhD If you have read the book, A History of Alternative Dispute Resolution, the work offers a comprehensive review of the various types of peaceful practices for resolving conflicts. Written by Jerome Barrett—a long-time practitioner, innovator, and leading historian in the field of ADR—and his son Joseph Barrett, this volume traces the evolution of the ADR process and offers an overview of the precursors to ADR, including negotiation, arbitration, and mediation. The authors explore the colourful beginnings of ADR using illustrative examples from prehistoric Shaman through the European Law Merchant. In addition, the book offers the

More Stories
Image
29-September-2017

Capital Market Fraud: Court Grants Bail to Banned Stockbroker

By Modupe Gbadeyanka Deputy Managing Director of BGL Group, Mr Chibundu Edozie, who was banned in 2016 by the Securities and Exchange Commission (SEC) from participating in capital market activities for 20 years, has been granted bail by the Chief Magistrate Court, Zone 6, Abuja. Mr Edozie, who exited the board of Transcorp Plc after the 2016 ban, was arraigned in court yesterday alongside three other persons on charges of criminal conspiracy, breach of trust and cheating. They were accused of conspiring with some other staff of BGL Group to commit the offences against the investing public. The accused persons

Image
12-December-2020

MTN Nigeria Trains 2,000 Young Entrepreneurs on ICT

By Adedapo Adesanya The fourth phase of the MTN ICT & Business Skills Training implemented by the MTN Foundation alongside its partners, Google, Cisco and Oracle, was wrapped up neatly with a virtual closing ceremony on December 11, 2020. The training, which was held virtually for four weeks, brought together about 2,000 participants from across five Nigerian states: Abia, Kaduna, Borno, Katsina and Akwa Ibom. The beneficiaries were taught by seasoned facilitators on entrepreneurship, cybersecurity and deploying data and insights to grow their businesses. Participants were divided into four groups to devise solutions to problems experienced by Nigerians. At the

Image
06-April-2017

DFID Gives Bicycles, Motorcycles to Back Primary Justice

By Dipo Olowookere In a bid to ease mobility challenges for its partners when working to ensure increased access to justice for most vulnerable members in society, the Department for International Development (DFID) has, through its Justice for Vulnerable Groups (JVG) Programme, presented 3100 bicycles to the Catholic Commission for Justice and Peace (CCJP) and 60 motorcycles and 100 bicycles to the judiciary. Since 2011, the UK has, through JVG, supported community and district mechanisms to prevent violence against women and children and support traditional and formal justice systems to be more accountable and responsive to women, children and detainees.

Image
05-November-2020

The Benefits of CBD Oil Products for Elderly People

We all have heard of CBD’s medicinal properties. Strangely, elderly people, a group that would benefit the most from the cannabinoid, is the least likely segment of the population to use CBD. Because of the stigma associated with marijuana, legally a grey area, the pharmaceutical industry, and advertising regulations, CBD has not yet reached the senior market. Who Uses CBD According to a Gallup Poll done in 2019, CBD’s popularity decreases with age. Not only with regular users but also with people who have tried it. The most common user is a young person in the Western United States. Only

Image
11-June-2018

Filmmaker Honours Zayed in ‘Estimrariya’ Short Film

By Dipo Olowookere A filmmaker known as Ullas R Koya has paid glowing tributes to the late Sheikh Zayed bin Sultan Al Nahyan, who is referred to the father of the United Arab Emirates (UAE), in a short film titled Estimrariya, which literarily means continuance in Arabic. The 6-minute film was premiered recently at an event in Abu Dhabi attended by His Excellency Sheikh Nahyan Bin Mubarak Al Nahyan, UAE’s Minister of Culture. Estimrariya, which was written and directed by Ullas R Koya, featured businessman and philanthropist, Dr B. R. Shetty, who played the role of an elderly Arab citizen

Image
28-June-2021

Facebook, Cybersafe Educate Parents on Online Safety Tips

By Aduragbemi Omiyale Some parents in Nigeria were recently lectured on some basic safety tools and features available on the Facebook platform to help keep children safe online. The event was hosted by Facebook in collaboration with Cybersafe Foundation, a leading non-governmental organisation in the information security ecosystem in Nigeria. The virtual seminar was designed to gather insights on the kind of online safety tips parents need; determine how they would like to receive these tips and equip them with digital skills needed to navigate the digital world. Providing parents with these basic digital literacy skills while on their parenting

Image
06-June-2021

Airtel Slashes Prices of Routers, MiFis in HBB Seasonal Offer

By Modupe Gbadeyanka The desire to meet the growing demand for quality home broadband experience with consideration for affordability has made Airtel Nigeria slash the prices of its routers and MiFis. The leading telecommunications services provider in a statement said the discounts on its home broadband devices are part of its HBB Seasonal Offer. It was disclosed that the promo, which offers value to its customers, commenced on June 1, 2021, and will end on August 31, 2021. Airtel said the offer is designed to ensure its home broadband customers get the best out of its broadband services on the

Image
16-December-2016

Niger Governor Presents N108b Budget for 2017

By Modupe Gbadeyanka Governor Abubakar Sani Bello of Niger State has presented the 2017 budget to the state’s House of Assembly. The appropriation bill tagged ‘Budget of Consolidation’, was presented to the lawmakers on Friday in Minna, the state capital. Mr Bello told the Assembly that he plans to spend N108 billion for the 2017 fiscal year, pointing out that the budget was designed to give priority attention to youth and women empowerment; completion of on-going projects; enhancement of IGR; re-introduction of teachers’ colleges; transformation of education and development of waterworks. According to him, the budget proposal of N108,074,298,251 is

Ad
Ad
Recent Stories
Image
19-March-2024

How Putin Won March 2024 Presidential Election

By Kestér Kenn Klomegâh After three days (March 15 to 17) of voting, Vladimir Putin is leading the Russian presidential election with 87.34% after 98% of ballots were counted, according to data from the Russian Central Elections Commission. Undoubtedly it gives Putin, who has been in power since the last days of 1999, another six-year term (2024-2030) to lead Russia, and to pursue with much vigour its foreign policy ambitions in the international system and push forward the much-trumpeted multipolar configuration with a focus on Global South. Putin’s assertive control over the political landscape has been solidified due to the

Image
19-March-2024

Moove Raises $100m in Fresh Race to Conquer New Markets

By Adedapo Adesanya Exactly a year after raising $105 million in an oversubscribed Series A2 round, African mobility company, Moove, has raised $100 million in a Series B funding round as it plots expansion into new markets. According to reports, the funding round was led by mobility giant, Uber and saw injection from others such as sovereign wealth fund Mubadala, The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa. This now pushes Moove’s post-money valuation to $750 million. The company is helping to solve the continent’s acute problem of limited access to vehicle financing for millions of

Image
19-March-2024

Oil Stocks Trigger 1.77% Gain at NASD OTC Exchange

By Adedapo Adesanya Oil stocks, Aradel Holdings and Acorn Petroleum, led the NASD Over-the-Counter (OTC) Securities Exchange to a 1.77 per cent appreciation on Monday, March 18. They increased the value of the alternative bourse by N24.85 billion during the trading session to N1.428 trillion from the N1.403 trillion it closed in the preceding, and the NASD Unlisted Security Index (NSI) rose by 18.33 points to wrap the session at 1,053.98 points compared with 1,035.65 points recorded at the previous session. Aradel Holdings Plc, after recent profit taking, appreciated by N114.28 yesterday to settle at N1,734.28 per unit compared with last

Image
19-March-2024

Naira Trades N1,597/$1 at Official Market, N1,600/$1 at Black Market

By Adedapo Adesanya The Naira appreciated against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the currency market on Monday by 0.3 per cent or N5.41 to close at N1,597.34/$1 compared with last Friday’s value of N1,602.75/$1. It also improved its value against the Pound Sterling in the official market yesterday by N50.97 to wrap the session at N2,003/£1 compared with the preceding session’s N2,054.06/£1 and gained N41.89 against the Euro to close at N1,712.69/€1 versus N1,754.58/€1. It was observed that the supply of forex, according to data from the FMDQ Securities Exchange, slightly waned

Image
19-March-2024

Brent Jumps to $86 Per Barrel on Low Crude Exports, Stronger Demand

By Adedapo Adesanya  The price of the international crude benchmark, Brent Crude, rose by 88 cents or 1.0 per cent to $86.22 per barrel on Monday, triggered by lower crude exports from Iraq and Saudi Arabia and signs of stronger demand and economic growth in China and the US. Also, the US West Texas Intermediate (WTI) crude appreciated by $1.01 or 1.3 per cent to $82.05 per barrel, as Iraq, the second-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), said it would reduce crude exports to 3.3 million barrels a day in the coming months to compensate

Image
18-March-2024

Cardoso Begins CBN Clean-up, Removes Directors Close to Emefiele

By Aduragbemi Omiyale There are strong indications that some directors at the Central Bank of Nigeria (CBN) may have to lose their jobs in the in-house clean-up exercise by the Governor, Mr Yemi Cardoso. Reports suggest that Mr Cardoso wants to let go of some directors who worked closely with Mr Godwin Emefiele, who President Bola Tinubu believes worked to stop him from going to Aso Rock. Recall that during his electioneering campaign, Mr Tinubu accused the former CBN chief and some persons of introducing the botched Naira redesign policy to frustrate him. Immediately after he assumed office on May

Image
18-March-2024

Profit-Taking Depletes Nigerian Exchange by 0.40%

By Dipo Olowookere The Nigerian Exchange (NGX) Limited succumbed to profit-taking on Monday, shedding 0.40 per cent despite a bullish investor sentiment. The local bourse ended with 27 price gainers and 18 price losers today, implying a positive market breadth index. The selling pressure was just investors booking profit after gains in the past few trading sessions, especially in MTN Nigeria, GTCO, Zenith Bank and others. The heaviest price depreciation was recorded by McNichols, 9.30 per cent, closing at N1.17, and was trailed by DAAR Communications, which shed 8.97 per cent to 71 Kobo. UPDC declined by 7.89 per cent

Image
18-March-2024

NCC Announces 90% Restoration of Voice, Data Services After Cable Cuts

By Adedapo Adesanya The Nigerian Communication Commission (NCC) has announced that voice and data services affected by undersea cable cuts last week have been 90 per cent restored. In a series of tweets signed by Mr Reuben Muoka, the Director of Public Affairs at the commission on Monday, March 18, the NCC said, “Following the disruption on March 14, 2024, which affected data and voice services due to cuts in undersea fibre optics along the coasts of Cote d’Ivoire and Senegal, we are pleased to announce that services have now been restored to approximately 90% of their peak utilization capacities.”

Image
18-March-2024

Unity Bank, SkillPaddy to Train Female Software Engineers

By Modupe Gbadeyanka At least 1,000 female software engineers will undergo a training programme organised by SkillPaddy through its Count Her In tech programme with support from Unity Bank Plc. The IT skill development and empowerment initiative is intended to bridge talent supply gaps while providing individuals with the opportunity to meet their training goals and launch careers in the tech industry. It was disclosed that about 40 young girls will receive full sponsorship from Unity Bank in the special training initiative which was conceived as part of activities to commemorate this year’s International Women’s Day 2024. All beneficiaries of

Image
18-March-2024

Your Moods Soundtracked With Spotify’s New Daylist Feature

Throughout the day, your mood changes, and so does the music you listen to. Last night might have been an island vibes riddim Monday night, while this moment is more of a nostalgic 2010s Tuesday afternoon. The point is, that you’re ever-changing, and your playlists should be too. Say hello to daylist, your day in a playlist. This new, one-of-a-kind playlist on Spotify ebbs and flows with unique vibes, bringing together the niche music you typically listen to during particular moments in the day or on specific days of the week. It updates frequently between sunrise and sunset with a