Hi friends, today let's talk about how a family men and women cope in taking care of their bills in a growing world of inflation and hikes in the market. As you read is post please drop a comment on your views.
Where Are we Heading to
Between 2011 and 2015, Nigerians bought Premium Motor Spirit (PMS) popularly called fuel by Nigerians at the rate of #65 per liter, which was equivalent to $0.328 (at #197.87 to $1).Source
Making a comparative analysis of the liters of PMS in 2015 and 2021
Based on the two above charts one will see that there's a great disparities in the exchange rate and the quantities of PMS sold by the petrol station. It wasn't mentioned that PMS is sold at #175 per liter, which is about $0.43 (@ $1 to #410.8).Source Let's take that my car will consume 100 litres of PMS in 3 months. The amount of money I would have spent in 2015 will be #6,500 which is about $32.8 based on the above exchange rate, while 100 liters in 2021 will be #17,500 ($42.58). The equivalent of #6,500 in dollar will be at $15 instead of $32.8 which was the actual amount as at 2015. There's a big difference in just purchasing PMS for my car in 2015 and now. The car has other maintenance to do on a monthly basis.
Maintaining a Car Alongside Family Needs
A man having a car and four children with a salary of #150,000 ($365)Source every months what'll be his expenditure in 6 months. In 6 months the man will earn #900,000 ($2,190.2).Source In 6 months time the children would've paid school fees for 2 terms, let's say they're paying #30,000 ($73) each term, four of them will pay #240,000 ($584).Source This is a little bit less than ¹/3 of his 6 months salary. Car maintenance will take about #30,000 ($73) every month, in 6 months he'll spend about #150,000 ($365)Source. Feeding the family will take about #50,000 ($121.67) per month and in 6 months he would have spent #300,000 ($730)Source, other expenses to be at #15,000 per month, in 6 months he'll spend #90,000 ($219). What'll be the savings of this man in 6 months time? The man would've spent #830,000 ($2,019.67) and saved just #70,000 ($170.53).
I'll conclude by asking this question: should the man sell his car to invest in other profitable ventures like hive, crypto and forex of maintain his car? I need your response @ura-soul @uyobong @zarankp @arcange @scholaris.pob @samsmith1971 @nonsowrites @pizzabot @beer