9 Strategies for Overcoming Inflation and Financial Difficulties as a Salary Earner in Nigeria

Before diving into the strategies for beating inflation and thriving during economic hardship in Nigeria, take a moment to pause and breathe. 

Allow yourself to be open to learning, and keep in mind that the information shared in this article will be valuable. 

The strategies discussed are currently being used by many people, and now is the perfect time to implement them, as the year is just beginning. 

Please note that this article will be lengthy. 

Conversely, salary earners are experiencing the worst impact of the current economic hardship.

Salary earners need to be intentional and strategic to mitigate these effects by prioritizing these critical areas: transportation, health, household items, feeding, and rent. 

These areas typically will stress one’s finances.

The strategies discussed in this article will help you address the financial challenges that may arise from them by adopting the creative approaches explained in this article. 

In Nigeria, some strategies have been successful, but it is important to note that not all financial advice that works in developed countries may be effective in Nigeria.

To get started, your fundamental goals should be:

  1. Achieving financial stability
  2. Establishing a level of financial security
  3. Achieving financial growth
  4. Unlocking consistent daily cash flow

Clearly defining and identifying the right objectives is crucial as it will provide a better understanding of which strategies are most suitable for achieving your goals. 

With a well-designed system in place to reach these objectives, you will probably experience less financial stress and have the potential to beat inflation.

The next step is to explore different strategies, which you can implement systematically’ to accomplish the objectives, with the key phrase:  “being systematic.”

Deploring the strategies systematically means addressing them in an organized and logical fashion, using a specific creative approach. Often it involves dissecting the problem into smaller components, evaluating each component and then using that information to create a resolution.

Then, apply a creative approach towards that resolution. 

This process is step by step, where each step relies on the previous one, and the final solution results from a systematic and logical progression. 

The 9 strategies are 

  1. Identify areas of concern and create a personal financial plan and budget to address them.
  2. Reduce expenses and save the residue 
  3. Income investing 
  4. Income smoothing 
  5. Establish emergency funds 
  6. Adopt Frugality as a lifestyle and avoid loan apps 
  7. Create micro-manageable extra streams of income
  8. Upskill 
  9. Strategic networking and intentionally increasing your visibility and influence

Identify areas of concern and create a personal financial plan and budget to address them.

Personal financial plans and budgets are necessary for achieving financial stability and security. 

By implementing the right strategies, individuals can take control of their finances and achieve these crucial objectives: 

“Achieving financial stability and establishing a level of financial security.”

The initial step in personal financial planning is to have clear and specific financial goals, such as paying off debt, saving for a down payment on a home, or planning retirement.

Within the context of this article, the intended result is to beat inflation.

Budgeting is a vital aspect of personal financial planning. 

It involves creating a financial plan that outlines income and expenses each month. 

By monitoring income and expenses, individuals can identify where their money is going and, could make adjustments as needed.

A creative and practical approach to budgeting during inflation is the 60/10/30 rule, which allocates 60% of income towards necessities, 10% towards discretionary spending and 30% towards savings or income investing.

Under necessities, it should cover areas such as transportation, food, household items, health, bills and rent.

During inflation, to achieve financial stability and establish a level of financial security, it’s recommended to reduce discretionary spending from the typical 30% to 10% by allocating more money towards savings and income investing.

Also, increase the amount allocated for necessities.

By discretionary spending, I am referring to the money available for non-essential items and services after paying for necessities like housing, food, and transportation. 

This type of spending is discretionary, meaning that it is up to the individual to decide how to use the money, and it can vary depending on an individual’s priorities and preferences.

Discretionary spending differs from mandatory spending, which is the money spent on necessities, such as rent or mortgage payments, utility bills, and health care expenses.

Discretionary spending can be a great way to enjoy life and reward yourself for your hard work. 

However, it’s necessary to have a budget for discretionary spending to prevent overspending and maintain financial stability during inflation. 

To do this, you can use a Personal Financial Planning Matrix. 

Click here to download the free tool and start drafting a better budget to manage your finances efficiently during this high inflation period.

To effectively plan for your finances, it’s necessary to understand your financial history. 

To do this, you can examine your assets, liabilities, and net worth as if you are about to apply for a bank loan. 

Create a list of all your assets and their respective values. 

Create a list of all your liabilities and subtract them from your assets to calculate your net worth. 

This exercise can be essential in understanding your financial situation and identifying non-essential expenditures. 

To determine what non-essential expenditures are, write your monthly expenses and ask yourself, “Amongst these expenses, what do I need to survive and maintain my physical and emotional well-being for the next six months without a salary?

“Any expenses that do not fall under the critical category can be non-essential, especially during trying times. 

And you should reallocate the money for that expenses towards either savings, income investing or necessities.

Personal financial planning and budgeting are ongoing processes that require discipline and commitment. 

By implementing the right strategies, individuals can achieve financial stability and security and work towards reaching their financial goals.

 Reduce expenses and save the residue 

Once you have identified the area of concern, the next step is to create a detailed financial plan by reallocating your income towards these areas.

Then try reducing the expenses.

The budget you created will pinpoint areas where you can cut back on spending. 

A personal budget is a crucial tool needed to beat inflation for a person who wants to take his finances seriously. 

You can’t do without having a personal budget. 

Using your budget, you can track the rate at which inflation affects your income.

Also, you can get a head start on areas to start from to reduce the impact of inflation because the areas you need to cut down expenses include not only discretionary expenses but also areas such as transportation, rent, health, household items, and food. 

To keep a tab on the rising cost of these areas, you need to consider adopting creative approaches to reduce expenses.


To manage rising rent costs, calculate the percentage of your budget allocated to rent or your monthly rent. 

There is no set percentage for how much your income should go towards rent as it varies based on factors like; income, location and personal financial situation.

However, a commonly used guideline is the “30% rule”, which suggests that you should not spend over 30% of your gross income on housing costs, including rent, utilities and other associated costs. 

For example, if a person earns NGN 300,000 a month, they should not spend more than NGN 90,000 on rent. 

It’s important to note that this is a general guideline and may not be suitable for everyone.

Some experts recommend allocating even less, around 25% of your income. 

The cost of living and individual’s income and expenses also play a role in high-cost cities like Lagos.

It may be harder to stick to the 30% rule or below it and may require additional cost-saving strategies and extra streams of income.

One creative approach for managing rent costs as a salary earner is to calculate the daily cost of your rent. 

For example, if your annual rent for a house is NGN 650,000, the daily cost would be NGN 1,806. 

To create residual savings from this expense, you need to find a savings account; which offers an interest rate between 9% to 15% (Opay Owealth gives a better savings interest) and deposit daily into that account.

Here is the math using Owealth as a case study: 

To calculate the compound interest on a savings account that offers 15% interest, we can use the formula:

A = P (1 + r/n) ^ (nt)


A = the total amount in the account after t years

P = the initial principal or deposit

r = the annual interest rate (expressed as a decimal)

n = the number of times that it compounds interest per year

t = the number of years the money is on deposit

Here, we are saving 1806 daily for 12 months, so:

P = 1806 * 365 = 659,190

r = 15% = 0.15

n = 365 (daily compounding)

t = 1 (12 months)

Therefore, the total amount in the account after 12 months (1 year) will be:

A = 659,190(1 + 0.15/365)^(3651)

A = 659,190(1 + 0.000104)^365

A = 659,190(1.000104)^365

A = 659,1901.05848

A = 699,967.964

So you will have NGN 699,967.964 in the account after 12 months.

NGN699,967.96 – NGN 650,000 

= NGN 49,967 (Residual Savings)

This method can help to ease the financial stress of paying rent when it is due.

You will even earn extra income from the interest on your house rent. 

Then you can use the residual income from the interest to build your income-investing portfolio. 

In situations where co-sharing house space or using your home for Airbnb is not viable such as in Lagos, because of security and privacy concerns, paying rent daily; may be the best approach. 

And also, as a salary earner, breaking down your expenses into daily expenses can help improve your financial situation. 

For example, if you find a deficit of NGN 5000 in your budget, you can generate a business idea to create additional streams of income to balance the deficit.


Health is a crucial aspect of our lives don’t take it lightly. 

Neglecting one’s health can lead to financial burdens. 

There are three creative approaches you can adopt to reduce expenses.

There are 

  • Preventative Health Care 
  • Building a special relationship with medical doctors, pharmacists and nurses are very necessary. A special relationship can save you 50% on treatment.  
  • Subscribe to health insurance. You might think this is not a thing, but let me tell you. You are one sickness away from poverty if you don’t have health insurance. 

So cutting your health expenses, start by prioritising preventative care through regular check-ups, screenings, and healthy habits.

Build a good relationship with a doctor, nurse or pharmacist for better communication, diagnosis and cost-effective treatment options. 

Consider purchasing health insurance to assist with medical expenses.

These approaches may appear costly at first, but if you keep track of your health expense, you notice that having health insurance and practising preventative health care is more cost-effective in the long run compared to treatment. 

Without health insurance and a good relationship with doctors and healthcare personnel, the cost of treatment can be much. 

By adopting preventative measures, you can save money and avoid unnecessary medical expenses.

Feeding and Household items:

The cost of household items in Nigeria is rising, causing financial stress for families. 

The causes are diverse and intricate, with major contributors being inflation, currency devaluation, and fuel shortages. 

To combat this situation, I’ll discuss the most successful strategy that has shown results in Nigeria’s complex environment.

As of the time of writing this article, the pump price of premium motor spirit is NGN320, a 28% increase from what it was the previous week, which is NGN250.

If you look at this logically, you will understand why the approach I recommend is very effective in dealing with the type of complex situation we face in Nigeria.

The most effective solution for coping with the skyrocketing cost of household essentials is buying those essential items in bulk. 

This technique can also reduce food expenses as larger quantities of food items often come at a lower cost per unit. 

A vendor often offers bulk purchasing discounts, which can be as high as 5% to 30% off the retail price.

These discounts give room for a typical street vendor to markup and make profits.

It means that the more you buy, the cheaper the price per unit becomes because you cut off the markup. 

Bulk buying reduces the cost per unit and can reduce how much you pay in the long run on household items.

It will also give you the leverage to adjust as the cost of items increases.

Especially bulk buying is beneficial for frequently used household and food items such as toilet paper, paper towels, milk and laundry detergent.

The question now is; how could you buy in bulk while he is still struggling to meet up with other pressing needs? 

The answer is to join or create a group buying community within your workplace, church, or estate. 

Before my mother retired from active public service, she ran a group buying campaign within her workplace.

 Those days hardly a time does our foodstuff store room runs empty.

And this eases the family’s financial burden.

And that is why I am a Group buying enthusiast. 

Here is a success story of group buying: Here is a good success story of group buying read the case study to see how effective group buying is. 

It sounds pretty elemental that one can cushion the effect of the hyper-rising cost of household items through group buying.

Yeah, it is workable to do so. You stand a chance to save more when you adopt this method of shopping.

Assuming that your monthly budget for frequently used household and food items is NGN8,500 through group buying, you can get a handful of household items more than what you would have gotten with the same amount of money.

One way to take advantage of this approach is to develop a long-term plan for savings; calculate what you would have spent assuming you are buying those items at a retail price.

Subtract the bulk purchase cost from the total spent on the items and save the difference to maintain growth of savings, despite inflation.

To learn more about group buying and how to start and manage a group buying campaign click here to join: Nigeria Vendors Community.


Creative approaches for reducing transportation expenses as a salary earner include leveraging the power of socializing, as humans are social beings. 

Socializing has been effective in achieving goals, and human creativity has allowed us to surpass the accomplishments of other social animals.

Now is the time to unleash your creative ability.

For instance, assuming you live on the mainland but your place of work is at Lekki and your Salary is NGN 150,000.

Considering the rising cost of transportation, you can opt to co-fuel a colleague’s car weekly. 

Calculate your weekly transportation expenses, then reach out to anyone you know who works within the location.

And propose splitting the cost of fueling his car for carpooling from Monday to Friday. 

This way, you can both help reduce your transportation costs.

The percentage to contribute shouldn’t exceed 45% of your weekly transportation allocation. 

The individual must not be heading in the exact direction.

All you need is to identify a connecting bus stop that won’t cost you to spend over 5% of your transportation allocation to get you to your place of work.

After work, you can wait for the person at this connecting bus stop to ride back home. 

Some individuals might ask you not to bother with the contribution, but don’t give in to that insist you want to contribute.

At least this establishes a win-win outcome that will make the person obligated towards it. 

If you reach a better understanding with the person and he keeps to the agreement, you have reduced your transportation cost to 50%. 

In certain areas, this might not work but try it. 

Another creative approach, considering the job, is if you can do it from home, then you need to be bold to approach the Human Resources department to discuss work-from-home or telecommuting options.

While discussing, try to use facts to paint a convincing picture.

For instance, having a healthy mental state without worrying about the rising cost of transportation will likely help advance the organization’s goal. 

You may ask for two or three days off, depending on how critically they need your presence in your workplace. 

It might be hard to achieve in some organizations, but if you are persuasive enough, you may have your way. 

If you achieve this, convert the days into money by calculating what you spend while working from home and what you spend on transportation during those days. 

Subtract and save the residue. 

It will surprise you how much money you would save from this approach. 

The last creative approach you may explore may not have the supporting infrastructure within our environment. 

Still, it is also a great way to reduce the cost of transportation by transferring a fraction of that cost to online shoppers.

 For better understanding, I will call this “freelancing dispatching”. 

Still, using our analogy of a mid-level salary earner that lives on the mainland but works at Lekki. 

Many people are under this category, now assuming you fall within this category. 

Have you given it thought that they are many online vendors living on the mainland that have customers living on the Island? 

I doubt if you have, right? 

Now, imagine if you can agree with many vendors to help them deliver their items to a specific pickup point on the Island, closer to where the customer can pick the order up conveniently.

So, what is that major bus stop or park you stop at before getting to your place of work? 

That park may be a lifesaver–just! Think. 

Here also, there’s a win-win for all the parties involved; the vendor, the customer and you. 

For the vendor, he got to deliver his item faster than using the formal dispatch riders is a great value proposition. 

I once purchased a shoe from a vendor in Yaba, but because of the delivery cost and the vendor’s difficulty in finding a dispatch rider, it took a week for the shoe to get to me in Ojo. 

It is a common issue for small vendors that can lead to lost sales. 

While established e-commerce firms may not face this issue, it is a concern for small online vendors.

If freelancing dispatching was available, customers could receive their items faster and at a lower cost, as they would not have to pay high delivery charges.

Charging the customer for a portion of your transportation cost, you can reduce your daily transportation cost to zero. 

For example, if your daily transportation cost is: NGN1500.

And the delivery charge is NGN2500, by agreeing to transport the item from the mainland to the pickup centre in Lekki for NGN1500.

You have already recorded zero transportation expenses for that day.

The money you should have spent can be saved or channeled towards sorting other expenses. 

Although, many things have to be in place to make this approach practical.

Nevertheless, if you find these approaches way out of your reach, try creating additional income streams that can help offset the rising cost of transportation.

So which of the three creative approaches would you consider adopting? 

Income investing:

Grasping income investing requires comprehending the connection between inflation and purchasing power. 

Inflation refers to the rise in general prices for goods/services.

While purchasing power represents a currency’s value in terms of the number of goods/services it can buy. High inflation reduces a currency’s purchasing power, thus allowing the same amount of money to purchase fewer goods/services.

For instance:

Inflation at 10% indicates a 10% rise in the cost of goods/services over a given period. An NGN100 item now costing NGN110 represents a 10% decrease in the buying power of NGN100.

In contrast, if inflation is low, the purchasing power of a currency increases. 

It means that the same amount of money can buy more goods and services than before. 

For example, if the inflation rate is 2%, it means that prices for goods and services have increased by 2% over a certain period. 

A product that used to cost NGN100 now costs NGN102. 

It means that the purchasing power of NGN100 has increased by 2%.

To counteract inflation, it’s crucial for salary earners to understand how inflation affects purchasing power: rising inflation decreases it while falling inflation increases it.

Primarily, as a salary earner to preserve the purchasing power of your money, you tend to invest in assets that can provide a return that is higher than the rate of inflation, such as income-generating investments, which include ETFs, dividend-paying stocks, buying foreign stocks and real estate or consider saving your money in dollars. 

Mid-level salary earners can beat inflation with income investing. 

This strategy involves generating consistent income from investments like stocks, bonds, ETFs, and real estate rather than solely aiming for stable and consistent income. 

To address the devaluation of the Nigerian Naira, we’ll also examine options for saving in a more stable currency. Some income investing strategies include:

Dividend investing: Investing in companies that pay regular dividends to shareholders for a steady stream of income.

Bond investing: Lending money to companies or governments through the purchase of bonds and receiving regular interest payments, with the risk of default.

Real estate investing: Investing in real estate properties directly or through REITs for income through rent or appreciation.

High-yield savings accounts, CDs, and cash equivalents: A low-risk strategy for generating a steady, low stream of income.

Peer-to-peer lending: An online platform connecting borrowers and lenders directly, similar to bond investing but with a higher risk of default due to the creditworthiness of the borrower not always being known.

While these are basic income investing strategies, they may not be accessible to all mid-level salary earners. 

Therefore, we will focus on selected strategies and examine creative ways to use them to beat inflation.

The strategies we will focus on include:

  • Investing in ETFs
  • Saving money in dollars using USDT
  • Investing in foreign stocks
  • Investing in Real Estate.

Investing in ETFs

 An ETF (Exchange-Traded Fund) is a type of investment fund that is traded on stock exchanges, just like stocks. 

An ETF holds a collection of assets, such as stocks, bonds, commodities, or a combination of these assets, and it can be bought and sold throughout the trading day, just like a stock.

An ETF is similar to a mutual fund, but it has some key differences. Unlike mutual funds, ETFs are traded on an exchange and their prices change throughout the day based on supply and demand. ETFs also have lower management fees than mutual funds because they are not actively managed.

ETFs can be used for a variety of investment strategies, including income investing, diversification, and index tracking.

For example, an ETF that tracks the S&P 500 index, will hold the same stocks as the S&P 500, in the same proportions, allowing investors to gain exposure to the entire market with a single investment.

Additionally, some ETFs are focused on specific sectors or regions, allowing investors to gain exposure to specific industries or geographic regions. Income-focused ETFs, also known as Dividend ETFs, invest in companies that pay regular dividends and can provide a steady stream of income for investors.

Overall, ETFs are a flexible and convenient investment option that can be used to achieve a wide range of investment goals, and they can be a good choice for investors who want to gain exposure to a broad range of assets with a single investment, while also taking advantage of the low-cost and liquidity that ETFs offer.

Saving money in dollars using USDT

Saving in dollars can be an effective way to shield against inflation in Nigeria, where the naira has a history of high inflation. 

However, it is crucial to weigh the potential downsides of this strategy. 

The naira’s exchange rate against the dollar can be highly volatile and there may be limitations on converting the naira to dollars or accessing dollars due to  Central Bank of Nigeria (CBN) restrictions on Fx. 

An alternative option is to use USDT, a cryptocurrency stablecoin pegged to the value of the dollar, which offers the same value as the dollar and is more easily accessible. To learn more about how to access USDT at a better rate, consider joining the Mrchino Club Inc. Click here to join.

Investing in foreign stocks

Diversifying your investment portfolio by buying foreign stocks can be a good strategy, as they may be less affected by inflation in your domestic market. 

However, it is important to consider the risks such as currency fluctuations, political instability, and regulatory differences. 

It is also crucial to conduct thorough research on the specific stocks and markets you are considering investing in, to ensure they align with your investment goals and risk tolerance. 

Here are five apps to consider using for buying foreign stocks: Pillow Fund, Bamboo, Chaka, Trove and PiggyVest.

 Investing in Real Estate

Real estate can benefit from inflation, as property values may rise with the cost of living. However, real estate is a capital-intensive investment, and not everyone may have the means to invest in it through traditional methods, which are: 

Buy and hold: purchasing a property with the intention of holding onto it for a long period of time, typically as a rental property.

Fix and flip: buying a property, renovating it, and then reselling it for a profit.

Wholesale: buying a property below market value and reselling it to another investor without making any improvements.

Developing or building: buying land and developing it, such as by building new homes or apartment complexes.

REITs: investing in real estate investment trusts, which are companies that own and manage a portfolio of properties.

Crowdfunding: investing in real estate projects by pooling money with other investors.

Lease options: providing a lease agreement with an option to purchase the property at a later date, or renting with an option to buy.

Short-term rentals: buying or renting properties specifically for short-term rentals, such as through platforms like Airbnb.

Some creative approaches that may be well-suited for a mid-level salary earner in Nigeria are investing in REITs and Real Estate Fractionalization.

Investing in REITs:

Investing in REITs can be a great way for mid-level salary earners to gain exposure to the real estate market while avoiding the hassles and responsibilities of direct property ownership. With the potential for a steady income and diversification benefits, REITs can be a valuable addition to an investment portfolio.

In a nutshell, Real estate investment trusts (REITs) are companies that own and manage a portfolio of properties, such as office buildings, shopping centers, and apartment complexes. These trusts are publicly traded and provide investors with the opportunity to invest in a diversified portfolio of properties without the hassles and responsibilities of direct property ownership.

One of the main benefits of investing in REITs is the potential for steady income. 

REITs must distribute at least 90% of their taxable income to shareholders in the form of dividends, which can provide a regular stream of income for investors. Additionally, REITs have the potential to generate capital appreciation over time, as the value of the underlying properties can increase.

Another advantage of investing in REITs is the ability to invest in a diversified portfolio of properties. 

By purchasing shares in a REIT, investors can gain exposure to a variety of properties and different markets, which can help to spread risk and reduce volatility. This can be especially beneficial for individual investors who may not have the resources to purchase multiple properties on their own.

Real Estate Fractionalization:

Real estate fractionalization is a novel concept in property investment that has the potential to change the way we approach buying and owning real estate. 

Here, we will explore what real estate fractionalization entails, how it operates, and why it is becoming increasingly popular among middle-level executives, particularly in developing countries with weak mortgage systems.

The core idea behind real estate fractionalization is dividing ownership of a property into smaller, more affordable portions. Instead of purchasing an entire property, investors can buy a fraction of it.

One of the main advantages of real estate fractionalization is that it makes real estate investment more accessible and affordable. Instead of needing a large sum of money to buy a property outright, you can start with a smaller investment of 150,000 Naira. 

Additionally, it offers full control and legal ownership documents compared to REITs.

Another benefit of real estate fractionalization is that it enables investors to diversify their risk. When you invest in a single property, your entire investment is tied to that one property. 

With real estate fractionalization, you can spread your investment across multiple properties, reducing risk and maximizing potential returns.

Another benefit of real estate fractionalization is its liquidity. With fractional ownership, investors have the ability to exit their investments more easily and swiftly than with traditional property ownership.

Fractional ownership also allows for more flexible and customizable terms and conditions, such as the duration of the investment, and the percentage of ownership.

There are two strategies that can be adopted for this, value investing and investing in commercial properties.

Value investing in real estate is a strategy where an investor looks to acquire properties that are undervalued with the expectation that the value of the property will appreciate over time. 

The objective is to find properties that are selling for less than their intrinsic value so that the investor can purchase the property at a discount and realize a profit when they sell it later on. 

For example, in Epe, Lagos, many properties are currently undervalued given the extensive infrastructure development happening in the area. This location presents a great opportunity to invest.

For instance, Esso properties sold a property for 600,000 Naira around six months ago, but now the land is being sold for 1,800,000 Naira, representing a 200% return on investment within 6 months.

If you had purchased this property using the fractionalization method with 150,000 Naira, you would have stood to make a significant profit within this period.

With an investment of 150,000 Naira + 20,000 Naira (documentation and legal fees), and with four co-owners, a locked-in period of 6 months and an administrative charge of 12.5%, each investor would earn 450,000 Naira after the sale of the property. After deducting the 12.5% administrative fee, each investor would be left with 393,750 Naira, representing a profit of 223,750 Naira within 6 months.

To learn more about how to get involved in real estate fractionalization, understand the legal documentation processes, and how to conduct proper due diligence before investing, join the Mrchino club.

Establishing emergency funds and Income smoothing 

Income Smoothing is a similar concept to consumption smoothing, but it refers to the idea of maintaining a consistent standard of living over a longer period of time, such as throughout one’s lifetime. 

It is an approach to managing and planning one’s financial resources in order to maintain a consistent and desired lifestyle over time, in spite of changes in income, inflation and other variables that may affect the budget.

It involves making strategic financial decisions, such as saving and investing, to ensure that you have the resources you need to maintain your desired lifestyle, even as your income, expenses, and other financial factors change over time.

Lifestyle smoothing is a more holistic approach that aims to maintain a consistent standard of living not only during changes in income but also over the long term, such as during retirement.

you may ask what is the difference between Income smoothing and emergency funds, right? 

okay, here is the catch! 

Building emergency funding and income smoothing are both related to financial planning, but they have distinct differences.

Emergency funding refers to setting aside money in an easily accessible account, such as a savings account, to be used in case of unexpected expenses or loss of income. 

The main goal of building an emergency fund is to have a safety net in case of emergencies or unexpected events that would require immediate access to cash.

Income smoothing, on the other hand, is the process of maintaining a consistent level of consumption or lifestyle over time, despite fluctuations in income. 

This can be achieved by saving money during periods of high income and drawing on those savings during periods of low income. 

The main goal of income smoothing is to maintain a stable standard of living over time and avoid having to make drastic changes to one’s lifestyle due to changes in income.

While building an emergency fund and income smoothing are related, the main difference is that emergency funding is more focused on having a safety net for unexpected events, while income smoothing is more focused on maintaining a consistent standard of living over time. 

Both strategies are important for financial stability and security, but have different goals and focus on different time frames.


In conclusion, as a salary earner in Nigeria, it is important to take control of your finances in order to overcome inflation and financial difficulties. The strategies outlined in this article, such as creating a personal financial plan and budget, reducing expenses, income investing, income smoothing, and establishing emergency funds, which can help you achieve financial stability, security, and growth.

One key strategy for achieving financial stability is embracing a frugal lifestyle. By cutting back on unnecessary expenses and avoiding loan apps, you can reduce your debt and increase your savings. Additionally, creating micro-manageable extra streams of income can help unlock consistent daily cash flow, giving you more financial flexibility.

Another important strategy is upskilling. By investing in your education and developing new skills, you can increase your earning potential and improve your chances of getting a higher-paying job.

Finally, strategic networking and intentionally increasing your visibility and influence can help you expand your professional network and open up new opportunities for career advancement. By following these strategies and taking control of your finances, you can navigate the challenges of inflation and financial difficulties and achieve financial success as a salary earner in Nigeria.

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