Have you ever heard about Malthusian theory? I bet you haven’t, unless you studied it in school or heard about it somewhere. But I believe you’ve heard about Corona Virus, AKA, Covid-19. In this blog post, I’m going to tell you about Malthusian theory and how it is linked to Corona Virus. And finally, we’ll briefly discussed about the lessons learned.
But before talking about how these two terms, “Malthusian theory” and “Corona Virus” correlates, let talk about Malthusian theory first.
What is Malthusian Theory?
Malthusian Theory, otherwise known as “Malthusian theory of Population” is a theory published in the year 1798 by an English Cleric named “Thomas Robert Malthus” as an essay on the Principle of Population.
This theory is basically referred to as “Theory of Exponential Growth and Arithmetic Food Supply Growth”.
Notice that this theory is based on “Population” and “Food Supply”, let see why this great cleric published this theory and we’ll see how exactly it correlates with Corona Virus (COVID-19).
Explanation of Malthusian theory
Thomas Robert Malthus noticed something about human race, and that is ‘Increment in population’ and ‘Decrement in food supply’. Meaning that, as times goes on, there will be very shortage of food to eat. And this will lead to great famine which will kill millions of people, if the population is not controlled.
I remember during my secondary school days, there is something we learned in biology about ‘competition’ when it comes to ‘Feeding’.
Let me use fish as a good example.
If you throw a bait, let say an earthworm into a river (or sea), each of the fishes in the water (in the area) will struggle in other to be the first fish that’ll eat the earthworm… Fishes competes against themselves before they can have something to eat.
Although there are herbivorous fishes that feeds on plant. But still, they’ll need to compete before they can be satisfied. Why? Because there’s shortage of food.
Fishes eats and survives on what they see in their environment.
But how does this correlates with human being?
If you notice that our population is crazily increasing while food supply is decreasing, this creates competition among us.
For instance, prices of foodstuffs keep increasing and only those who can afford buying it will eat, while those who can’t afford to buy it, will have to starve.
In Africa, our population is increasing rapidly. For instance, in Nigeria, we have more than 204 million people here. In Lagos State, Nigeria, there are over 22 million people living there and that’s more than population of a country. For example, Netherlands (a country also known as Holland) population in Europe is not up to 20 million.
In China, the population according to World Bank and United States Census Bureau report more than One Billion people living in China as at 2018. In 2020, I’m sure it will be more than 1.5 billion people.
China is a country in Asia and the people living there are more than population of the whole Africa as a whole continent.
India population is competing with China as India has more than 1.3 billion people living there.
What am I trying to tell you?
As this population is rapidly increasing, more people are getting poorer and finds it difficult to eat good food because they can’t afford it and there’s no enough food to feed people.
Nigeria is the World Capital of Poverty because major part of the population can’t afford $1 per day.
And let me tell you that Nigeria is better than most African countries but we are the representative to describe how poverty is affecting AFRICA.
In India, they’re so poor that they beg for $5 jobs. And if you read their story, you’ll notice India is previously world capital of poverty until Nigeria took over.
This is the reason why there is something called Malthusian theory of population.
Let talk about they two key points in the theory;
- Food Supply
According to Thomas Malthusian theory, populations grows in Geometric progression or G.P in mathematics.
G.P is a sequence of numbers where each and corresponding terms are gotten by multiplying the previous one with a constant number known as common ratio.
For example, in the following term: 2, 6, 18, 54…… the next term will be what?
To get the next term, you need to find the common ratio, which is 3.
2 * 3 = 6 and 6 * 3 = 18 and so on. So, to get the next term after 54 will be 54 x 3, which is equal to 162.
That’s how population increases across the world.
For example, as at the time Nigeria got her independent in 1960, our population was 45,138,458.
After 10 years, that is in 1970, our population increased to 55,982,144. In another 10 years, 1980 the population was 73,423,633 and in 2000, the population was 122,283,850….
In 2010, the population increased to 158,503,197 and in 2020, the population is 206,139,589.
Do you noticed how it increased from 45 million+ to 206 million+ within 60 years!
And between 2010 to 2020, the population has increased with over 47 million people (within 10 years). And we’re expecting over 50 million to be added by 2030.
You see how the population grow faster and how it follows the Geometric Sequence?
Now let me talk about the food supply.
- FOOD SUPPLY
According to Malthusian theory of population, food supply or production increases in Arithmetic Progression or A.P.
A.P is a sequence of numbers where each and corresponding ratio is gotten by differences between the terms.
For example, in the series of 2,5… can you guess the next number?
Remember in G.P, we would say 2 x 3 = 6 and the next number would be 6 x 3, which is 18. But we don’t calculate an Arithmetic Progression like that.
To get the next number in the series; 2, 5 …, we will need to find the common difference which is 3.
You don’t multiply but you add to get the next number.
Which will be 2 + 3 = 5, to get next number, you say 6+3 = 9 and so on.
Let bring back the population and food supply in comparison;
If the population increases as 2, 6, 18, 54 etc., the food production will increase as 2, 5, 8, 11, 14 etc.
Notice that by the time we reach 5th term, population will be 162 will food will be 14.
Meaning that 162 people will have to share or compete on food meant for 14 people!
That’s bad right?
Don’t worry, you’ll soon see how Malthusian theory correlate with Corona Virus.
Thomas Malthus didn’t only postulate and published theory about population and food supply but he wrote about possible (and may be “only”) solution to avoid famine or shortage of food.
Malthusian theory stated that, there’s need to control the population to avoid many people dying from shortage of food. He then stated that this phenomenon can be controlled in form of “Natural or Positive Checks” and “Preventive Checks”.
And these “checks” or control will lead to something called Malthusian Catastrophe which will control the population to normal or sustainable level.
But let talk about these two checks;
Two Ways of Controlling the Population – According to Malthusian Theory of Population
- Natural or Positive Checks
Malthusian theory of population stated that natural forces is capable of correcting the imbalance between population growth and food production.
And these natural forces can be in form of natural disasters such as hurricane, earthquake, flooding, fire outbreak, War etc. when these things happened, they will reduce the population growth.
Remember that the preventions will leads to Malthusian Catastrophe…
Okay, let talk about Preventive Checks
- Preventive Checks
Malthusian theory of population suggested that preventive measures can also be adopted in other to control and contain the population growth with respect to food supply.
He said that prevention measures like celibacy (to avoid marriage and having sex), family planning, and late marriage.
Now, how does Malthusian Theory Correlates with Corona Virus?
Although Malthusian theory of population was criticized because there’s rapid advancement in technology, which has makes food processing master and easier.
But according to research, more people are getting poorer.
According to World Bank, those who are living in extreme poverty can’t afford $1.90 per day.
In 2016, about 734 million or 10% of world population are extremely poor – that’s they can’t afford a dollar per day. And in extensive research, the country with the amount of people living in extreme poverty is Nigeria with over 86 million in 2015 who can’t afford $1 and by 2020, I’m sure the amount would have increased to 100 million people (I will update this later when the latest number is published by the United Nations).
Those who go below $1.90 per day are also poor and those who are below $10 are poor.
Now, let see this stat by the World Bank as at 2015;
The rate of people who are extremely poor are 734 million people (1 in every 10 people). Half of these people living in extreme poverty lives in China and India.
And to control this population according to Malthusian theory, something needs to be done.
Government has mandated family planning in countries like CHINA and INDIA in order to reduce the population. But yet, China and India are still the first two most populated countries in the world with half of the poorest people living in the world.
Poverty rate will decrease economic growth.
That’s why it is suspected that “Corona Virus” is a man-made weapon used to control the world population. And if you notice, Corona Virus originated from China, the world most populated country with high amounts of people living in extreme poverty.
Meaning that, some powerful people are behind this pandemic. I can’t say if they’re helping the world by reducing the population because lot of lives has been lost in the process.
But all the way, Malthusian Theory is proved to be true with this pandemic, COVID-19. Because this pandemic is not from God, it is man-made!
If they want to use this pandemic to control the world population, then we should expect this to hit India and Africa just like it happened in China.
Currently, over 1 million people have been killed by this virus, with most in China, Italy, Spain and the United States.
Lesson learned from Malthusian Theory of Population in Correlation to Corona Virus?
- Many people believed that Corona Virus is from God, as a way of punishing the wicked ones. But this is NOT true. Corona Virus is man-made weapon
- They say there’s currently no vaccine for corona virus. If this virus is man-made, then there is vaccine but they’re not ready to release it.
- Corona Virus will not end the world, it is just a weapon to control the world.
- They may want to end this pandemic but it’s out of control
- This pandemic will control the population to an extend but the population will spike up again
Rounding Off: Malthusian Theory of Population and Corona Virus
This is an opinion written on basis of Malthusian theory.
To learn more about this theory, you can google search about it and you’ll learn a lot. Also, all statistics are taken from Wikipedia according to direct reports from the United Nations/World Bank.
I don’t mention the name of anybody behind this corona virus pandemic and I do not know who are they. The government of all countries affected are trying to deal with this virus except where it is turned to COVID-419.
What do you think about this article?
Kindly drop a comment sharing your opinion either in support of, or against my opinion here. And you think that this information is useful and elated you, kindly click on the social media icons floating here in other to share instantly with your friends on social media.
Thanks for reading and I will be expecting next time. You can do good by subscribing to my mailing list here and you’ll be notified whenever I publish new helpful contents relating to this, business ideas, how to make money online, banking and other tips.
How To Start a Logistics Business in Nigeria – (10 Easy Steps)
Have you ever want to launch your own logistics business in Nigeria but don’t know how to start or what exactly to do? I’m going to show you an easy and practical approach to starting a profitable logistics or delivery business in the country.
Do you know that some businesses are complementary to others? Yes, they work for the benefit of both businesses. And in this age of the Internet, the tendency to shop online continues to increase as the days go by, hence, the need for a complementary service, that’s a service to fulfill the deliveries.
Logistics or delivery business in Nigeria or any place in the world is not ending soon because almost all e-commerce business owners or companies are now on the internet and they need a logistics company to help bridge the gap between the end of the buyers.
Just in case you don’t know much about the logistics business, below is a quick explanation;
Understanding How Logistics Business Work
In a business sense, logistics aid the movement of goods/services from the manufacturer/wholesaler to the consumer. By definition, it sounds simple but by the implementation, it is rather complex. This is why manufacturing firms sparingly have their own logistics team—relying on an independent logistics company.
Logistics companies are tasked with the responsibility of the planning, implementing, and movement of goods, services, and other valuables from the point of origin to the final consumer. The origin of logistics can be traced back to world war 1 (WWI) and WWII where the military had to make supplies available for their soldiers.
Logistics is now a full-fledged business today and lots of money can be made. This is why I’ve made this post to guide you on starting a logistics business in Nigeria.
If you have ever shopped on Jumia, Konga, Amazon, Aliexpress, and other top online shopping sites, I’m sure you understand that the guy or company that picked the products from the manufacturer’s warehouse and delivered to you, in operating under what we know as logistics business.
Now, let’s talk about starting your own logistics business in Nigeria or anywhere in the world!
How to Start a Logistics Business in Nigeria: 10 Steps!
#1. Develop Your Business Plan
Writing your business plan is the first step to take when starting a logistics business in Nigeria. Many take this for granted but having one is pretty important. You really don’t need to have good writing skills or be a business expert before crafting a good business plan.
Although, there are a lot of services that can assist you in generating a business plan I advise you to write manually or hire the someone who can personally do it for you.
Since your business plan will be your guide as you grow your logistics business, a personalized version will always come in handy. I won’t go into great detail here as we already have a post on writing a business plan and a free template.
Check this guide on how to write a good business plan.
So, let’s talk about the next important step!
#2. Get Your Capital
After your business plan, the next thing is to get your capital – which you know is very important. And there are several ways you can source for your capital. You can choose to finance it personally or get a loan from the bank.
Getting a loan or financing your logistics business yourself has its pros and cons and it’s totally up to you. Lots of commercial banks would be willing to offer you a loan, you can as well apply for business grants which will save you from the stress of providing collaterals.
Once the funding is acquired, the next step is to;
#3. Get an Office Space
You don’t need a big warehouse, but an office where you can attend to clients and enquires in case a company or a customer need to see you before transacting with your company.
Ensure your office is well decorated, not beautifully but professionally.
- Your main office should be separated from where you keep customer goods
- Your office should be easily located, don’t rent an office space very far to the main road
- Your business location should be google (You can hire me for this)
If you’ve got your office space, then do this:
#4. Choose Your Delivery Mode
Logistics business in Nigeria can take different forms. We’ve got companies who make use of motorcycles, buses, mini-vans, or trucks. You can start with one of these, or you could mix them up for flexibility.
Knowing what means to use for transportation will determine what you choose to use as your capital. Using a motorcycle/bike means less capital expenditure but also, it limits you to carry certain goods.
Also, you’d be choosing between:
- Intra-state (e.g within Lagos state)
- Inter-state (e.g Within and outside Lagos state – to Kwara State, etc.)
- Inter-countries (e.g from the USA, China, etc to Nigeria)
Or perhaps, you can decide to do both but keep in mind that you’ll have to learn more travel routes in a short span of time.
Okay, the next up in purchasing the tools needed for your business and also, hiring some personnel to fill out different positions. From our definition of logistics, it is very evident that you will be needing a good number of workers to ensure everything is carried out seamlessly.
#5. Buy Necessary Equipment & Vehicles
You need to buy important Items like computers, stationery, dispatch box, telephones are some of the important items needed to run a successful logistics business in Nigeria. With these and more in place, it is expected that you have an effective logistics business like the top brands in the country.
Considering your mode of delivery, you can buy some motorcycles or small buses and brand them with your business identity, just like the like of Jumia, etc.
Some logistics companies also partner with taxi drivers and okada riders to fulfill the deliveries instead of using their own cars, motorcycles, and drivers.
If you want to deal with inter-countries, then you need to grow your network with aviation companies.
#6. Setup a team or Employ Staff
About getting the necessary requirements, the next big deal is to set up your own team or employ some people to work with you.
Also, make sure to hire staff to fill out different positions and not just drivers. Asides from delivery, business management, customer care service, and planning need to be top-notch which the driver can’t do.
This team or staff includes;
- The drivers (if you have motorcycles or buses)
- The customer care agents
- The marketing team
If you don’t have enough money to pay staff, you can hire university students, or those people who are smart and conversant enough, then train them yourself or hire an expert to come and train your team.
#7. Register Your Business
If you want your logistics business in Nigeria to be taken seriously as a business entity, then getting your business registered should be a top priority for you. These days people are getting more aware of fraudulent businesses. Failure to register yours puts up a red flag for potential customers.
Looking at it critically, the cost of registering your business with the Nigerian Corporate Affairs Commission isn’t expensive, so why not do it? Starting with N10,000, you can register your business in Nigeria. If you have a business name already for your logistics company but don’t have enough funds to register, you can reserve your business name for 6 months with just a little token of N500.
Check out our post on how to register a business name in Nigeria.
If you need me to register the business for you, it cost N25,000 and I will get your business approved and your business registration certificate will be sent to you, or you collect it yourself.
#8. Go Digital with Your Business
The world is digital itself, all businesses are going digital and if you’re not on the internet, then you don’t have a business yet. And when I say you should go digital, I’m not saying you should just open social media pages and that’s all.
You should try and get a professional website, do your google business listings, list your logistics business on business directories, do Search Engine Optimization (SEO) and of course, your business social media pages are important.
If you need a professional website design or development, my Web Design and Digital marketing agency can handle that for you. Kindly contact me here or visit our website here >>> https://www.gbolabyte.com
We can also handle your digital marketing, google business listing, SEO, and other digital or remote tasks you need us for.
Remember that most of your customers are online, you also need to get your business and the first approach is to get a business website for your logistics business in Nigeria.
#9. Brand Identity Design & Branding
Business identity and branding will really differentiate your business from other logistics businesses in Nigeria. When it comes to branding, you need the service of a professional graphics designer.
Note that some graphic designers are not experts when it comes to branding.
Branding is more than designing a logo, it involves anything that will make your business stands out. Brand Identity designer offers everything ranging from your logo, icons, social posts banners, ID cards for your staff, brand your company vehicles, brand your office equipment, and everything brandable.
This is very important and it goes along with your marketing, that’s what I’ll be explaining last!
#10. Market Your Business.
You’ve come a long way in starting your logistics business in Nigeria. As a new player, unless you’re extremely lucky, no one is going to find out about you. Which is why you’ve got to market your brand.
The top logistics firms in Nigeria like GIG Logistics, Creseada International Limited, Ocenj Logistics, and more didn’t get to where they are today by chance. They sent the word out about their business and then delivered on the customer’s expectations.
And in this age of the Internet, it’s much easier to market your business by using available tools like social media. Remember, you’ve got to offer something different from the rest, or make a service offered by your competition better. With these, your logistics business will soar to great heights.
Part of your marketing strategy is to try and connect with e-commerce website owners or companies in Nigeria so that they can recommend you to their customers. Try to reach out to these companies and your business network will continue to grow.
CONCLUSION – How to Start a Logistics Business in Nigeria
E-commerce is getting bigger by the day in Nigeria and this is why the logistics business in Nigeria as a complimentary service is getting more traction. And yes, like every business, this has its own risks but with a good management team, these risks can be reduced to its bare minimum.
At the moment, the logistics space in Nigeria isn’t that saturated which is a good reason to start as soon as you can. As you do, keep in mind the steps above as they’ll be your guide when you experience obstacles.
So, over to you, when do you wish to start your logistics business in Nigeria? And if you own one already, how did you start yours? Let’s hear from you!
President Muhammadu Buhari’s Full Speech on #EndSars Protest
Have you watched the broadcast of President Muhammadu Buhari’s full speech on the #EndSars protest? Well, many of us are opportune to watched it live on NTA (their YouTube channel).
We all know what’s happening in the country since two weeks ago and the President hasn’t until today, address the citizens of Nigeria. Before he went live to deliver his speech, Nigerians had set their expectations so high to listen to see what Mr. President planned to do with Lekki Toll gate’s Massacre, Police brutality, bad government, corruption and other things happening in the country.
But, well… Nigerians are left disappointed.
I know by now, you have being seeing some posts on social media by Nigerians, saying they need need to leave this country and travel to Canada and sort of cruise like that regarding President Muhammadu Buhari’s full speech on #EndSars protest.
You’re eager to listen to it right? Worry no more! You can watch the video below or read the speech.
VIDEO: Full Broadcast of President Muhammadu Buhari on #EndSars Protest
You can read the speech speech below;
ADDRESS TO THE NATION BY HIS EXCELLENCY, MUHAMMADU BUHARI, PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA ON THE ENDSARS PROTESTS, 22ND OCTOBER, 2020
It has become necessary for me to address you having heard from many concerned Nigerians and having concluded a meeting with all the Security Chiefs.
2. I must warn those who have hijacked and misdirected the initial, genuine and well – intended protest of some of our youths in parts of the country, against the excesses of some members of the now disbanded Special Anti-Robbery Squad (SARS).
3. On Monday 12th October, I acknowledged the genuine concerns and agitations of members of the public regarding the excessive use of force by some members of SARS.
4. The choice to demonstrate peacefully is a fundamental right of citizens as enshrined in Section 40 of our Constitution and other enactments; but this right to protest also imposes on the demonstrators the responsibility to respect the rights of other citizens, and the necessity to operate within the law.
5. As a democratic government, we listened to, and carefully evaluated the five-point demands of the protesters. And, having accepted them, we immediately scrapped SARS, and put measures in place to address the other demands of our youth.
6. On approving the termination of SARS, I already made it clear that it was in line with our commitment to the implementation of extensive Police reforms.
7. Sadly, the promptness with which we have acted seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.
8. The result of this is clear to all observers: human lives have been lost; acts of sexual violence have been reported; two major correctional facilities were attacked and convicts freed; public and private properties completely destroyed or vandalised; the sanctity of the Palace of a Peace Maker, the Oba of Lagos has been violated. So-called protesters have invaded an International Airport and in the process disrupted the travel plans of fellow Nigerians and our visitors.
9. All these executed in the name of the ENDSARS protests. I am indeed deeply pained that innocent lives have been lost. These tragedies are uncalled for and unnecessary. Certainly, there is no way whatsoever to connect these bad acts to legitimate expression of grievance of the youth of our country.
10. The spreading of deliberate falsehood and misinformation through the social media in particular, that this government is oblivious to the pains and plight of its citizens is a ploy to mislead the unwary within and outside Nigeria into unfair judgement and disruptive behaviour.
11. On the contrary, both our deeds and words have shown how committed this administration has been to the wellbeing and welfare of citizens, even with the steadily dwindling revenues, and the added responsibilities and restrictions due to the Coronavirus pandemic.
12. Government has put in place measures and initiatives principally targeted at youths, women and the most vulnerable groups in our society. These included our broad plan to lift 100 million Nigerians out of poverty in the next 10 years; the creation of N75 billion National Youth Investment Fund to provide opportunities for the youths and the Micro, Small and Medium Enterprises (MSME) Survival Fund, through which government is:
a. paying three months salaries of the staff of 100,000 micro, small – and medium – enterprises,
b. paying for the registration of 250,000 businesses at the Corporate Affairs Commission,
c. giving a grant of N30,000 to 100,000 artisans; and
d. guaranteeing market for the products of traders.
13. These are in addition to many other initiatives such as;
e. N-Tech and
14. No Nigerian Government in the past has methodically and seriously approached poverty-alleviation like we have done.
15. With regard to the welfare of police personnel, the National Salaries, Income and Wages Commission has been directed to expedite action on the finalization of the new salary structure of members of the Nigeria Police Force. The emoluments of other paramilitary services are also being reviewed upwards.
16. In order to underscore the importance of education in preparing youths for the future, this administration has come up with a new salary structure and other incentives for our teachers.
17. Let me at this point reaffirm the Federal Government’s commitment to preserving the unity of this country.
18. We will continue to improve good governance and our democratic process, including through sustained engagement.
19. We shall continue to ensure that liberty and freedom, as well as the fundamental rights of all citizens are protected.
20. But remember that government also has the obligation to protect lives and properties, as well as the right of citizens to go about their daily businesses freely and protected from acts of violence.
21. To our neighbours in particular, and members of the international community, many of whom have expressed concern about the ongoing development in Nigeria, we thank you and urge you all to seek to know all the facts available before taking a position or rushing to judgment and making hasty pronouncements.
22. In the circumstances, I would like to appeal to protesters to note and take advantage of the various well-thought-out initiatives of this administration designed to make their lives better and more meaningful, and resist the temptation of being used by some subversive elements to cause chaos with the aim of truncating our nascent democracy.
23. For you to do otherwise will amount to undermining national security and the law and order situation. Under no circumstances will this be tolerated.
24. I therefore call on our youths to discontinue the street protests and constructively engage government in finding solutions. Your voice has been heard loud and clear and we are responding.
25. And I call on all Nigerians to go about their normal businesses, and enjoin security agencies to protect lives and properties of all law abiding citizens without doing harm to those they are meant to protect. Let me pay tribute to officers of the Nigeria Police Force who have tragically lost their lives in the line of duty.
26. I would like to thank those state Governors, traditional and religious leaders who have appealed for calm and restraint. I also thank youth leaders who have restrained their followers from taking the law into their hands.
27. This government respects and will continue to respect all the democratic rights and civil liberties of the people, but it will not allow anybody or groups to disrupt the peace of our nation.
Thank you all. God bless the Federal Republic of Nigeria.
That’s the full speech of President Buhari on #EndSars protest 😉
I don’t know what to say on this… But someone commented on Twitter that the President Buhari’s speech make the whole country “speechless” — Maybe that’s why I don’t know what to say.
But I know most Nigerians are disappointed.
But just in case you’re thinking of traveling out of the country and you don’t know how to start, here is how to get your international passport in Nigeria
What do you think about the 10 minutes speech? Kindly use the comment box below.
8 Effective Ways to Reduce Your Household Expenses
Are you finding it quite difficult to reduce your household expenses? Okay, don’t feel depressed, this page is what you need to get motivated and take that action!
Among all lessons we have learned during this COVID-19 “pandemic period”, one good lesson we should always stick to, is how to manage our funds and resources. Millions of people across the world became unemployed as a result of this world-renowned virus, but how do they survive? By simply cutting their expenses and wise management of their savings.
It is very important we learn how to manage our money wisely, or hence, we might end up becoming financially broke or a debtor. I know you don’t want that!
Today I’ll be showing you how to reduce your budget and lower your household expenses. These tips work for everybody, regardless of who you are, either you’re a 9-5 employee or an entrepreneur.
So, let’s check them together!
8 Ways To Reduce and Manage Your Household Expenses
Tip #1. Cut Off Your Cell Phone Plan
Having and using a cell phone is quite expensive when studied critically. No doubt they’re beneficial… but we also get charged for services, tax, etc., that we can’t even explain. This is why it’s important to choose a good cell phone plan.
According to NCC (Nigeria Communication Commission), Nigerians collectively spent about N450 Billion per month on recharge cards and data connections. That is approximately $1.17 million spent every month on cell phone plans.
You know what?
The amount of money spent on recharge cards and data connections covered about 73% of Nigerians’ expenses while the remaining 27% covered foodstuff, emergency funds, skincare, and other personal stuff.
I’m sure you’re one of those people enriching these telecommunication companies every month, I personally buy data worth N15,000 every month!
We need to learn how to reduce these expenses, and the best way we can do that is to reduce the hours we spent on social media apps (especially, Instagram and Facebook), YouTube, and online streaming sites.
Also, a prepaid plan is the most suitable option. You can get it with the major carriers at almost half the price of the regular plan. The beauty of prepaid plans are the added bonuses and incentives. Things like unlimited calls, unlimited SMSs, reduced call rates, and lots more.
If you’re looking to save some bucks, cut the regular plan and switch to a prepaid plan.
Tip #2. Do Away With Cable Subscription
One of the best ways you can reduce your household expenses is by ditching your cable plan. I know it feels good to lay on the couch after the day’s work… sipping your favorite drink… watching a good movie. I get it. But you’re on a budget and some things have to go.
Thankfully, we have digital platforms today where you can watch your favorite TV and sports shows. You can watch TV on YouTube, Netflix is a good option—it costs less per month, Showbox for Android users is great, or you could get a fire stick.
There are lots of these services out there, using any will help in maximizing your finances in the long run.
Tip #3. Get an Insurance
We live in a world where everything is risky either on land, in water, or at home. Accidents can happen anytime, you can start developing a kind of sickness any day, your car might develop faults and different unforeseen circumstances that may suddenly require you to spend money.
Sometimes, you have to borrow money from your friends, co-operative society, or take a loan from your bank, in order to take care of those issues.
But to help you manage your funds and reduce your expenses, Insurance plans are ready to cover that for you.
If you are a car owner, it is very important to have auto insurance. It comes in handy because you never know when uncertainties or accidents may occur. But the cost of these plans does take a toll on your finances.
You can always shop around for a less expensive plan. The big carriers tend to charge you higher than necessary. This may be due to you having certain covers you don’t need at the moment, or you’re probably in a wrong plan.
Take out time to review your current insurance plan, do away with covers you don’t need. Or better still, check out smaller firms with similar benefits but at a lower cost.
Tip #4. Cancel Memberships
Membership plans do get you exclusive features and other juicy benefits. This could be membership plans from your gym, Netflix, Amazon, or Audible. Whatever it is. If it’s not necessary at the moment, cancel it.
You wouldn’t miss much. There are alternatives you could check out: YouTube for Netflix, visit a local library in place of Audible, and work out at home instead of going to the gym. Remember, you’re trying to cut costs.
Tip #5. Consider Reducing Your Rent
It’s time to do away with luxurious living if you stay in a rented apartment. Take for instance you live in a 3 bedroom apartment…you could switch to a 2 bedroom or 1 bedroom to reduce household expenses.
Also, if you can, assuming this wouldn’t affect your work: try switching locations if possible. Certain areas are characterized by huge housing costs but you can change to less expensive areas if possible.
I know a guy who spent up to $2,500 (N800,000) on his new rented apartment, he had enough money in his savings to take care of feeding and other necessary stuff for the few months. But as an entrepreneur, he invested the savings on a business which went against him!
Dude is broke, and the next thing for him is to relocate to a small apartment which will cost N40,000 per year ($100/yr) instead of his previous N90,000 per year ($220/yr).
So, don’t be afraid to reduce your rent, change the location, and start looking for the bigger picture (stabilizing your business and getting your own house).
Tip #6. Cook in Your House, Stop Eating Outside!
Yes, you read right. And you’re asking if it’s possible? Of course, it is possible. We don’t tend to keep records of how much we spend on food and restaurants. I don’t do that.
And so we go ahead without knowing because we think the amount we spend per meal or snack is little. No, it’s not. When summed up, we could see how much we’ve spent and how big the amount is.
I was a regular fan of a restaurant close to my house. I spent up to N1500 on every meal. To me, I thought that’s cool and not too much to satisfy my belly. But at the end of the first 30 days, I realized that N45,000 has left my pocket on just a 1-square meal per day. And that doesn’t include the transport fare to buy the food, the tips, and money spent on food for another 2-square meal.
Averagely, I spent up to N60,000 in that month on food.
Again, you may think it’s very small when you’re spending it, but when you calculate the total money spent at the end of the month, you’ll see how much you’ve spent.
So, I decided to start buying foodstuffs and cooking at home (I have kitchen utensils already). I spent an average of N15,000 per month on foodstuff, and like N200 per day on other things I need to buy, that is N6,000.
It means I spend N21,000 on food I prepare myself instead of the previous N60,000 on outside food (saving N39,000)!
So please… stop eating out. Start cooking at home and see how much of an impact it makes. Yes, it might be difficult but you need to stop.
Tip #7. Reduce Your Grocery Bill
Staying with our previous tip, I asked you to cook at home. But wait! What if you’ve been spending more than you should on groceries? If you’re guilty of this (maybe you’re not) here’s how you can reduce your grocery bill.
You can start patronizing stores that offer discounts. Others may have deals like “By One, Get One Free”, or you could shop online using coupons. Don’t tell me you don’t love those deals…those discounts. You do, right? So go ahead and change your grocery store or supermarket.
Buy your groceries in bulk instead of buying at a very expensive price per one or two.
Also, notice those things you don’t really use and stop buying them or maybe, reduce the quantity.
Tip #8. Fancy Grooming… Are They Even Necessary?
Sure they are! I know we all crave those fancy stuff such as good shoes, chains, clothes, coffees with milk, cream, sugar, or whatever. But there comes a time when we need to sit back and ask: Do I really need this? Especially if you’re like me who is grinding to save some money.
Go get yourself a coffee maker and start making yours at home. If you’re not going to any occasion that demands you for new clothes, don’t buy it, if your shoe leather is getting worn-off, fix it by giving it to a professional shoemaker instead of disposing of it.
I know it’s convenient to get out there and fix your nails, make your hair, or do some makeup. Right now you need to consider doing these things yourself.
Are they difficult?
Not at all. Unless you’re too busy. If you’re not, pick up your phone and head over to YouTube to start learning these things and start saving money.
CONCLUSION – These Tips Will Help You Manage Your Funds and Reduce Your Expenses
There you have it: 8 Ways to Reduce your household expenses. I know we love to do all these things: we love to eat out, live in luxurious homes, have some fancy coffee daily, then come home to watch our cable TV.
But right now, you need to implement these tips above. If you can’t do it all, no problem. But make sure you implement the ones you can.
So over to you, which of these things will you be cutting? Let’s hear from you.
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