Panic Buying

Few days ago I talked about how inflation makes people lose out on delayed gratification. This is because, if you are earning on an inflated currency, in an inflated economy, the value of your earning decreases everyday. Imagine having a salary that can sustain you for a month two years ago only to earn the same salary but it doesn’t sustain you for 2 weeks. But what can you do? Others would suggest leaving that country to a better country, but remember that the longer you have stayed in the country, the more expensive it will get to leave the country, all thanks to inflation. While you are still in the country, you have to survive, so how do you survive?

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You can survive by getting a work that pays in a more stable currency like the dollar, pounds or euro, this way, if your local currency is inflated, the foreign currency you are earning keeps you a step ahead inflation. This is another reason Nigerians are fully invested in crypto, while they stay ahead inflation with dollars, they hope the value of the asset increases in dollar value as well. Trying to kill two birds with one stone, which is crypto. But what about the people that don’t have that opportunity? Well, they have to do what is called panic buying. They can’t afford to delay their gratifications anymore, because if they delay it, they will definitely not be able to afford it the next day.

The moment they see what they like, before considering saving for it, they have to make sure they do everything they can to buy it at that moment. This is because, there is no guarantee of getting it at that price the next day. In such situation, all the financial lectures and having financial discipline you have been taught will be flown out the window because they don’t matter anymore. The economy is experiencing crisis and you can’t do anything about it aside survive or look for another means, or better still migrate.

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