As we blame too many things on this pandemic, clearly, in the middle of it will be our finances. This is because a lot of us are primitive money thinkers, we think of no other way of making money than working daily for it. Sadly, this season we really can’t go outside to make money in the ways our hustle has taught us. So, let’s re-imagine our finance, decisions and trade-offs. There are no worthy decisions without trade-offs.
Beyond looking for just alternatives to generate more revenue, start from adjusting your balance sheet. Your expense cannot be the same if your income has reduced. Have a budget. The truth is, too many people spend money they really don’t have, to buy things they really don’t need to impress people they don’t like, who don’t care too.
I suggest that you “prioritise” your spending this season (break them into utilities, essentials, short term versus long term, vitals and trivial). Depending on your social category, (while for some it’s to pause on a capital project as mortgage and buildings, for others it’s to decide whether to turn off all auto updates on your mobile to conserve data, or what AC to turn on to conserve power or when to turn on the generator. Proper planning, they say prevents poor performance. Stay off unnecessary payments and subscriptions. Furthermore, consider the following tips too:
No panic buying: Stay off panic buying. It leads to high pricing and unnecessary waste. And in the words of M.W Harrison, “the waste of money cures itself, for soon there is no more waste”.
Stay off impulse buying. If you don’t define where your money is going, you’d end up wondering where it went. Have a budget and stick by it. Anything that is not an emergency and no in the budget can wait. Also, avoid living above your means at this time. Never spend money before you have it. Don’t do “audio money”. The term “Audio Money” was made popular by one of the P Square artistes; he used the word “audio money” to refer to money that is never seen but constantly heard from people who claim to have money. Giving a false impression of wealth puts too much pressure on you.
This a good time to reimagine your debt profiles. Move to reduce your account receivables (debts). And also, maybe those that owe you. As the saying goes, the only person who sticks to you closer than a friend in times of adversity are your creditors
No matter how things get bad, keep an emergency fund. With all your dependencies, the health crisis all around household hazards, I pray you wouldn’t need it. But the reality is that life comes with uncertainties.
This a good time to reimagine your debt profiles. Move to reduce your account receivables (debts). And also, maybe those that owe you. As the saying goes, the only person who sticks to you closer than a friend in times of adversity are your creditors. Get personal with your creditors. Just sending an email won’t work. Call up the client. Meeting up the client face to face where possible. Most times, unannounced visits would help. Perfect timing is also key. Understand timing; send an email very early in the morning, so it’s the first thing they see when they wake up. If it’s either still early or late in the month, perfect time to send a subtle reminder. Offer conditioner discounts on loans (say for example, discounts or a percentage write off on the total debt can be given to people who pay you on time or in this season).
Leverage on updated regulations from the macroeconomics bailouts (some taxes may have been suspended that affects you). For example, Buhari has directed that a three-month repayment moratorium for all TraderMoni, MarketMoni and FarmerMoni loans be implemented with immediate effect. A lot of people are restructuring their rents and bank loans too. Also, except where necessary stay off borrowing this season. Don’t ever borrow money for something that doesn’t enhance your financial goals, nor where you want to be in the future.
It’s time to think beyond and ahead. An African proverb reminds us “whoever you give the power to feed you, you also give the power to starve you”. Most people have given too much power to daily hustle and employment.
The Covid-19 suddenly didn’t drive u to stay indoors. It drove us to somewhere deeper, online. And it will never return us back to exactly where we used to be. Upgrade now. Our lives have just changed!
There is crisis and panic. As the world become more anxious, beyond survival and being desperate and hungry for a solution to these deaths and pandemic, after all these what will emerge suddenly will be new opportunities for businesses. After this pandemic, alternatives to 9 to 5s will be more available. This means layoffs and more MBOs (Management by Objectives). More underdogs that have taken advantage to draw closer to neglected clients will take over the opportunities that they have seen and explored while others were asleep and on lockdowns. The Work from Home concept will have more credibility. For a lot of companies, in the past, there has been some sort of mental barrier to letting people work from home. Well, not anymore. I think a lot of organizations will see how well their business copes (if they get the right digital tools in place) with more of their employee base working from home (which could invariably create more work-life balance as well as cost saving,
I predict new business models, new brands, a new league of power brokers and problem solvers. Will you be one?
Also, one other thing to quickly embrace now is to maybe have an extra income. The truth is that what we most have as JOBs just an acronym for being Just Over Broke. In other words, most people work just hard enough not to get fired. And get paid just enough not to quit. It’s a rat race.
Have other streams of income. Explore your passion, challenges around you as opportunities or even begin to monetize your expertise and experiences. For example, you can start to offer consulting in your field (you’d be surprised how many people can pay for the knowledge you have and you take for granted); you can start to launch that out through blogging, a webinar, a free virtual event or even a podcast. You can write a book too. You can offer a free or discounted service in your neighbourhood at this time. E.g. you can teach your kids neighbours how to play Chess, use the piano etc.
Stay positive, stay off too much news, stay hydrated, stay home, and exercise to reduce anxiety.
