5 things to do about money during this Coronavirus pandemic (Part 2)
I have provided some background in the Part 1 of this article.
The common questions on the lips of so many Nigerians in the last weeks have included:
- What should I do with my money now?
- Should I liquidate my investments?
- Is it a good time to invest? What should I invest in now?
1. Stay liquid
History has shown us that times like this present exciting financial opportunities for those with “cash” and very liquid investments. In the last week, for example, I have had someone who either wanted to sell some asset of theirs at some ridiculous rate and another who needed cash to take advantage of a shipping opportunity. There are persons who acquired real estate at ridiculous rates during their Great Recession.
Remember cash is still king, and “cash” here is not wads of money under your bed; I’m referring to money in accounts you can easily access and assets that can be very easily liquidated.
2. Spend less
While everyone is panic buying and stocking for a zombie apocalypse (LOL), this may be time to take a pause. Review your budget. Determine which of your current spendings are unnecessary, and cut them. In the last weeks, a few companies have either cut down on their workforce or reviewed wages. If you are unsure of the security of your income, it becomes even more critical to spend less.
3. Keep investing — in higher yield liquid assets and positively impacted companies/sectors
Don’t get carried away with only surviving. Think about life after these times. We will beat this. When we do, how would you want your finances to be? Save for it. Keep investing. Make that choice wisely — preferably products with returns higher than the current inflation of 12.2%. If you are investing in agritech, invest in a platform with a secondary market that allows you liquidate your investments anytime. reQuid aggregates safe investments in the agricultural sector (Disclaimer: I am a co-founder).
There are companies whose businesses are positively impacted at this time — remote work enablers like Zoom, pharmaceutical companies producing chloroquine (as the FDA approves clinical testing), food delivery companies and the likes.
4. Invest in You
This is a great time to invest in yourself — rest, exercise more, engage your relationships better, learn a new skill. Do you have a (set of) skill(s) optimised for remote work? If you don’t, this might be a great time to.
5. Invest in soap and a deep pocket (pun intended)
Remember that frequent washing of your hands or application of a hand sanitiser helps to significantly protect you from the virus.
Keep your hands away from your eyes, nose and mouth. Better still, keep them in your (deep) pockets.
Stay well.
