Have you ever imagined that borrowing is actually reversed savings? Yes it is. It is called saving down. You can either save up or save down.

Saving up is when you accumulate funds to a targeted sum in order to meet a purchase. For example, people set aside a specific sum of money (e.g. N5,000) every week over period 20 weeks to accumulate the sum (N100,000) required to purchase a generator, refrigerator or to pay their child's school fees. Alternatively you can source the funds (N100,000) immediately, and payback over a period of time. For example, you can borrow N100,000 purchase a generator immediately and pay back N20,000 monthly over 5 months. This is called saving down.

Savings down is a useful concept in period of high inflation like Nigeria is experiencing as a result devalued currency owing to lower oil prices. The rise in general prices that will occur as a result of removal of oil subsidies require skillful management of funds by the fixed rate employee.

In an inflationary environment, the purchasing power of the fixed rate employee drops. Thus the value of savings previously accumulated can no longer fund the targeted purchase owing to rise in prices of goods.

Usually the salary of employees dont rise during inflationary periods, the opposite is the case - companies downsize and keep salaries fixed, such as is being experienced in Nigeria today. It makes better sense for the fixed rate employee to borrow, thereby capturing the value of goods offered at their present value and spread repayment over time in the future. 

This approach preserves existing savings (saving up), and even enables the saver to earn a return on funds accumulated in the past while funding current needs whose price may rise further beyond the reach of planned savings (saving up schedule).