The financial state of the global economy has become an eye opener to many organisations and individuals as positivists are of the opinion that the pandemic is a blessing in disguise.
Organisations have become creative in their mode of operations and more careful in their choice of investment, seeking new ways to have more gains and reduce losses. For individuals, everyone can see their financial capabilities through the current financial setback and ways to improve on it in readiness for “another rainy day”.
How ready are you if there is another downward trend in the economy? How financially prepared are you to face the realities of a full year lock down if there was to be any? How strong are you financially to face inflation in the future?
We are all faced with realities the current state of the economy has brought our way. How well do you stand financially?
A penny saved is a penny earned (George Herbert): You can never grow above what you have as what you have is an indicator of the stuff you are made of.
It is often said that wise men save more than they spend. Your money should therefore work positively for you. On the order hand, it will be best to say, wise men invest more than they spend. What are your modes of investment? The popular saying “No man knows the future” is not a reality if you are financially strong. Being a team player in the Pension industry has made me realise that in times of financial challenges, the only one thing that will work for you are resources you have grown over a period of time. People have turned to their PFA’s for financial support, others to other financial houses where they were probably coerced or mandated to save a little. Of course, we no longer need to preach investment as the message is passed already.
Attach your savings /Investment to a project: I often tell people that the best way to reserve and grow funds is if you give it a name. Name your investment by attaching a project to it. However if you don’t know what to save for then, Save for a rainy day. We are hardly ever prepared for financial setbacks, making our recoveries slow. This setbacks may come in form of global pandemic affecting the economy, inflation, unstable exchange rate, wars between nations etc. Our financial readiness will to a large extent indicate our level of survival. You might not feel the impact of your investment at the beginning, but in the long run, it will “speak for you”
Build a rich financial portfolio: Spread your investment as it is no longer a case of putting all your eggs in one basket, but spreading them into various containers with reliable managers as a seal. Invest in stocks for long term projects, bonds, improve on your Pension scheme, make constant researches to know the type of investment that is doing well at a particular period and channel your funds there.
You are as strong as your economy when you save more and spend less; or weak when you spend more and save less. Always remember; Spending is quick and earning is slow.