Have Your Finances Come Out Of Recession?

The body that announced that we fell into recession last year was the one
that announced that we had emerged from it. I believe the officials have the
data before them to make that announcement. I am neither an economist nor
inclined to join the argument. I do not argue with data.

If you put your
financial house in order, what happens in the economy will not affect your home.
You can create your own climate and enjoy sunshine in your house while it is
raining outside. Markets boom and crash. Economies go through boom and bust
cycles. In the middle of all the commotion, there are companies and individuals
that are not affected. There are always winners and losers anytime there is
change. It is up to you to decide which side of the divide you want to belong.
People are still travelling. Building projects are going on everywhere. The fact
that it is not happening to you does not mean it is not happening to
others.

How is your economy doing? 
We can argue until we turn
blue in the face about the national economy, but what about your own economy?
What lessons have you learned from the recent recession? If you come out of this
recession the same way you went in, you will suffer the same fate when the next
recession comes knocking. There are two ways to change – make up your mind to
change or be forced by circumstances to change.

Most of the change I have
seen is due to circumstances. That means the changes may not last after the
circumstances that drove the change go away. We are holding onto our cars
longer. Many have moved their children to cheaper schools. Some parents have
discovered that there are world-class universities in Nigeria where the
lecturers do not go on strike. Many companies have discovered that they can
source for raw materials and software locally. I discovered that fixing my
appliance is much cheaper than throwing it away and replacing it with an
inferior one.

The reality is that compared to our level of production, we
are hyper consumers. We spend as if we are rich. It is very easy to spot a
Nigerian at an airport abroad. Simply look at the height of the trolley. If you
see anyone arguing at the check-in counter over excess luggage, chances are the
person is a Nigerian. Rather than invest in businesses that create wealth, we
are busy making other nations richer.

How is your economy?

Have
your finances come out of recession?

What lessons has the recession
taught you?

Become aware of the consequences of your
actions 
School is never out for anyone with a goal. We can choose to
live our lives intentionally and decide what we really want. To achieve our
goals, including financial goals, we need to know what we are doing wrong that
is holding us back from moving forward. If we are taking actions that are
sabotaging our efforts, trying to move forward without dealing with that is like
trying to accelerate with your brakes on. Most of our financial challenges are
self-inflicted. We don’t mean to hurt ourselves. We are just clueless. We keep
inflicting financial injury on ourselves without knowing who is doing it. We
look for answers outside without realising the culprit is us.

I often
share this story of how my hands kept peeling whenever I washed clothes with
detergent. When I stopped washing clothes for a week or so, my hands healed. I
tried everything – several hand creams; I even prayed. But it went on for more
than a decade. Then one day, I was discussing with a group of friends in my
sitting room and one of them asked me to bring my hands. After inspection, she
asked what soap I was using. I mentioned the name of the detergent. She told me
the detergent was too harsh for my hands. She recommended I used a milder
detergent or a bar of soap. I heeded her advice and that was the end of the
mystery of peeling hands. I was the one ‘killing’ my hands while I was busy
looking for solutions outside. Ignorance is a formidable enemy. It can send you
on a wild goose chase, looking for what is not lost.

I have never
forgotten that lesson. I later read a book on nutrition, titled ‘What you don’t
know may be killing you!’ by Dr. Don Colbert. It holds true in other areas of
our lives, including finances. What you don’t know may be killing your finances.
Ignorance is not bliss. We need to make a conscious effort to know.

What
lessons have you learned from the last recession? If you don’t learn from
history, you will repeat it over and over again till you get it. Don’t just
celebrate the exit from recession. Find out what got you there. What are you
going to do differently? Learn the lessons and build on it. Each storm should
leave you stronger because of the lessons you learn along the way.

–
Usiere Uko