Thursday 23 April 2020

Covid19 and Personal Finances

50 Personal Finance Tips That Will Change the Way You… - The Muse

Where is your money going?

When total lockdowns started happening, so many things came to a stop. Movements were restricted except for personnel going to buy home groceries.
People normally spend their money on things like entertainment, concerts, etc. But for now all that has been shut down. People now need to use this time to educate themselves rather than be entertained.
The question I would ask now is, Where is your money going? Are you saving more or there is nothing to save at all since it is basically survival for now?

I read an article from CBC, entitled 'I'm spending way less': The caption says that the lockdown is leading to more savings for some Canadians. I don't know how it is for you wherever you are and in whatever country. Surely back here in Uganda, so many things have slowed down and I could say on a personal note, I have saved on travel since I can only walk or drive somedays to the nearest supermarket. I last fuelled the car with $27.

In their article Max Miller said, she is spending less with the exception of groceries but most of her discretionary expenses are almost zero. Another person, Jo-ann Trunzo said, their account balance was much higher and that they realized they don't go out for dinner or shopping and that it's amazing to realize how much money you spend that you really don't need too. For some people, I also know their account balance could be less or non-existent since they work every day and it's a hand to mouth affair. There are people who don't even have emergency savings at all. This situation has hit hard in so many places world over.

What I have Heard Other Households Say

When the Lockdown was looming, people went into panic buying and I remember telling people to buy but to also know that what they buy would eventually get spent. However, the word SAVE has resonated on the mouths of people, others have said, we won't waste. In Uganda, people have a practice of throwing away food and this is because we know we have plenty of it. But that attitude of wastefulness can hurt in the long run especially in hard times like this. 

Some of the people I know have chosen to plant food in empty plots or in sacks around their homes, some have learned how to bake bread, cakes, etc. so that they don't have to buy it from the grocery store. We only hope that this will become the new normal however, we also know that old habits die hard but it will take serious discipline.

So right now it would be good to ask yourself, where can I put the monies I had previously budgeted for. For me personally, I am thinking of putting my travel money into an investment like so that it can be invested. Travel money has been one of my biggest expenditures. You know we have to move from saving to investing, I am quite certain so many people know how to save, but to grow wealth the game-changer comes in investing. 

Many of us are baby boomers, Millenials and we can't let the consumer mentality continue to rob us. The good thing is the Lockdown doesn't require us to dress our best to show off, doesn't require us to drive to show off, right now is a time for mindset shifts and it would be good 

"Don't let the fear of the time it will take to accomplish something stand in the way of your doing it. The time will pass anyway; we might just as well put that passing time to the best possible use." - Earl Nightingale

Time To Restrategize 
  • If you can pay off your debt.
  • Convert your time into tangible products, Jim Rohn once said, "Time is more valuable than money, you can get more money but you cannot get more time"
  • Determine what your needs are and focus on them, cut off wants for now.
  • Grow your own food, if you can, it's high time we started using empty containers to grow food especially here in Uganda.
  • Start thinking long term by putting aside money to invest, if you don't know where or what to invest in, save the money in because at least it won't just be saving but it will grow since it will be invested.
  • Start envisioning your future post covid19, life won't be the same, there will be a new normal, somethings will change for good but what needs to change with you is your attitude towards money and how you will beat the trap of consumerism. Many people have realized that there are many things they don't need that are stacked up in their house and this is the time to declutter.
Invest In A High-Income Skill

More than ever, you and I need to invest in a high-income skill, we need to learn more about money than ever before. Dan Lok once said we don't have a money problem, we have a skill problem. A high-income skill comes through learning and applying what you have learned. It's not good enough for us to have all the knowledge on money and not use it. It is like theoretically knowing how to drive but never getting into the car to actually drive it.

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