In three months, we will be entering the third year of our new normal. Masks are still a mandatory fashion; our houses continue to have the double role of being home and office, and even the slightest cough sends a tiny shiver down our spines. So much has changed, yet so much has stayed the same. The one inconspicuous yet significant change to come out of this period is the intentionality that goes into financial planning. The rapid job loss, pay cuts, and overall state of the economy have led many to thinking about how to better plan for the future. Here are a few financial and investment lessons from the pandemic that can guide us as we draw nearer to normalcy.
Creating multiple streams of income is a sound step towards securing your future. Diversifying your income streams allows you to maintain greater economic security and stability should one stream dry up. This extra level of financial security allows you to take risks and venture into different businesses and markets, which gets you out of your comfort zone and enables you to grow. As the saying goes, nothing ventured, nothing gained.
When incomes fail, the next thing to bank on is emergency savings. Money set aside for a rainy day gives you a fallback plan as you look for an alternative source of income. It also helps to offset unexpected matters that require financial attention. The more money there is in the bank to deal with issues like these, the better your odds of coming out on top.
Health insurance has never been as important as it is today. Health issues are always unprecedented, and the costs they incur can eat away at one’s finances, leaving even the most financially sound individuals completely spent. Prioritizing your health by getting regular health checks and paying for a health cover is an important investment that goes a long way.
For non-profit organizations the withdrawal of funding, by international donors mainly, has been a learning point on the importance of forging networks locally. This owes to the allegiance shown by Kenyans who showed up to support organizations by donating to their campaigns at the onset of the pandemic. Further, the sudden shift to a virtual world made the need for an independent online presence imminent. Following these two discoveries, businesses and organizations are now consciously putting effort towards growing their virtual presence and in turn made it possible to build worthy networks with both local and international audiences.
In the fundraising world, the simplicity, security and convenience of online fundraising has been something that has gained significant publicity during these COVID times. People now know that it is possible to manage the whole fundraising process from the comfort of their devices. Compelling organization stories, working systems such as established fundraising platforms and money transfer channels are now things considered to be valuable.
The effects of COVID-19 are slowly dissipating as more people learn how to navigate this pandemic. While we hope never to endure such an event again in our lifetimes, we can only hope for the best and prepare for the worst by getting our financial affairs in order while we can.
M-Changa is an African online and mobile fundraising platform that was launched to make fundraising more convenient, more efficient and more secure than the traditional Harambee. To date, over 50,00 fundraisers have raised millions of dollars from over 1M+ contributors.
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