The global pandemic has brought along with its spread, lockdowns which have resulted in not only health, social and economic challenges but also financial ones too. More means of earning and saving are shrinking and for many, newer realities are emerging some of which were known but not adhered to before and for others completely new ones.
Here are five of such financial or money realities that COVID-19 has shown us Nigerians.
Having multiple sources of income is the sure way
The COVID-19 pandemic is a key reminder that the average Nigerian cannot rely on one means of income only. Economic implications have made employers relieve some staff of their services and for those who do not get a new job quickly, the future days may not be convenient. Therefore, it is important to have another or even more than two sources of income — you just never know when somethings happen to make you lose your job.
Having an emergency fund is non-negotiable
In such uncertain times as these, everyone needs a cash reserve to lean on. This reserve should be different from the regular savings — we call this an emergency fund. The thumb rule to creating an emergency fund is to have at least 3–8 months of expenses saved up in a place where it can be easily accessed.
Diversify your investment portfolio to mitigate risks
The pandemic and its attendant economic woes mean that key investments were badly hit. Keeping all your investment in one instrument may not be wise -even before the virus outbreak. The pandemic may have only added more damage. Equally important is to ensure that your investments are not about chasing unrealistic quick returns but to ensure that your investments fit your risk appetite, financial goals, and liquidity requirements.
Never take a loan you cannot afford to repay
There is a saying, “cut your coat according to your size”. This should be applied to taking loans. Loans can be used as a bail-out from a financial emergency, however, taking a loan you cannot repay is a bad idea. The lockdown has made so many lose their jobs and source of income-earning to make loan repayments, therefore you should only take a loan you know you can repay.
The Saying Health is Wealth is so true
If there is one thing the COVID-19 virus re-emphasized, it is that our health is very important. Ask yourself, what is the benefit of huge wealth when your health is not strong enough to enjoy it? We advise that you have a personal health insurance plan in case you suffer job loss when a health plan provided by an employer is not available again.
With all these said, it would make financial sense for you to save money and find investment instruments that can give you good returns in the long run. Fortunately, Octa is a savings platform that offers you up to 13% interest returns on your savings. You should consider saving with Octa.