A Few Reflections When Faced With A Financial Crisis

I hope you are all doing well and enjoying the different resources that are being shared on this platform. You know it's not how much knowledge we have but how we use the knowledge - it's application is what brings transformation.

At the beginning of this year, I happened to be a witness to some truths about life. Where I do work, we hadn't been paid for some time and some allowances had also delayed for a long time and mind you, people had got loans best on the allowances that were to be paid and also the institution was closed indefinitely.

Despite people having salary loans, they also had loans from loan sharks and from colleagues within. The debt level increases because of multiple borrowing and also borrowing to service another debt.

When we were paid eventually some people were still indebted because of multiple borrowing since whoever was owed wanted to be paid there and then.

There a few lessons I learnt from this period in time.

1. Financial literacy is important

I have been reading up on articles from the likes of James Abola, First of all his book MAKE SENSE OF YOUR MONEY is one we must all have, you can get it from bookstores around or contact him by visiting this site for more. I have learnt about saving, budgeting, investing etc. Empowerment comes from what has been revealed, it's like searching for truth and you find it, it releases you there and then. 

I read his articles from prosper magazine, that's in the daily monitor. In that period, instead of waiting for salary or allowances, I resolved to do something instead of just sitting home doing nothing. I did some transport business and also continued (trading) selling yellow york eggs - you know this is passive income and it comes in handy. Some people sit back saying i have no work or nothing to do which basically means they have suspended their brains. We all have brains that need to be put to work.

2. Have an Emergency Fund 

I learnt the value of having an emergency fund. Of-course my wife and I already had one and it reminded me of what I have always heard, that it should be able to take you from 3-6 months of expenditure. It is good to be visionary, people who talk and write about these principles have so many reasons why, experience is the best teacher. Cutting out many luxurious things and having a mind of an entrepreneur is very important. Dave Ramsey teaches and says that you should build an emergency fund of $1000 which amounts to about 3 million Uganda Shillings plus depending on the dollar rate. By the way if you put your mind to it, its possible and it can bail you out in many tough moments.

3.Multiple Sources of Income

I learnt the importance of having multiple sources of income, because depending on one stream is total DISASTER as an individual, I explored SHARES even more. I bought my first shares many years ago in stanbic and recently i was called to see if i was getting my dividends, this encouraged me. I decided to buy in Umeme as well and this is in a way to widen my net. I am still thinking of more avenues, they are so many, I just need to understand what I am to invest in.

4. Work your way out of RENT

I also realized that many of the colleagues at the institution were renting just like me and the "CRYS" of the Land Lord knocking on their doors was the cry of the day, this taught me to start thinking of working on our goal of housing with my wife, we now have two young boys and things like shelter are a necessity, whatever it takes you have to provide it. 

Because of  many good practices, the Land Lord did not disturb us because my wife and I work together on our finances and this really is a STRENGTH because when one is down, the other lifts you up, and when we are all UP, it gives us the opportunity to do more. In the long run, we would love to become Land Lords and be on the receiving side. As I write this, we have made great strides on our shelter, and with time I will be sharing more about this.

5. One reading, One Seminar isn't enough, we need constant learning

I also got to realize that financial literacy is something people to need to hear more and more so that it can improve their lives, some people turn a deaf ear but you know its a choice at the end of the day if you want to see things change. My wife Martha and I are a big testimony of the things we learnt and put to practice and let me say this, these principles work, you just have to tell yourself, am going to do this, it will discipline you but you will learn and help others as well.

6. keep the right company

Always keep the right company, you will get good advise, wisdom to conquer many problems, if you are around negative energy, you end up complaining and doing nothing.

#Impact #Empower #Transform