How Can You Guard Your Finances During Covid-19?

As the deadly Coronavirus continues to sweep across Kenya, fear and anxiety have gripped everyone. Nobody knows when this shall end. Nobody knows about the future.

Motivational speakers and preachers who told us at the beginning of the year that “2020 was our year” have since gone underground. Even their wisdom cannot define what exactly is happening.

Nasty flu is eating up the earth, one that the World Health Organisation (WHO) has defined as a threat to the existence of humanity. Tears. Sweat. Blood. Shuttered hopes. Unknown future.

As the virus continues to spread, scampering and devouring anybody on its way, economies are feeling the heat. Businesses both in Kenya and around the world are closing/have closed down.

In Kenya, for instance, all bars were closed by the government. Hotels, unable to get customers both within and without Kenya, chose to shut their doors and fired their employees. Airlines such as Kenya Airways and Jambojet have since halted all the flights.

Stats now indicate that in the past three weeks, at least 6 million Kenyans have become jobless. Adding to the already high unemployed population, this is a huge number. The largest number of unemployed is made up of youth.

How can you guard your finances during Covid-19?

Covid-19 is a threat to our finances. The reason why the government has been reluctant to call for a total lockdown is that the majority of Kenyans do not have what it takes in terms of finances to stay indoors and feed themselves even for a week.

There is a misconception that you must have lots of cash to invest or to survive through a pandemic such as this. As much as this might be partly true, what matters is using the little you have in the little way you can for it to grow into something big.

Try Money Market Funds

A money market fund is a kind of a mutual fund that invests only in highly liquid near-term instruments such as cash, high-credit securities, Treasury Bills among others for a period less than 13 or 12 months.

Currently, there is a preference for money market funds as short-term investment vehicles for the majority of Kenyans. Previously, many Kenyans could not think beyond banks when thinking of where to save their cash.

Apart from being short-term with low risk, money market funds have a high interest as compared to bank savings accounts. You can try out the Cytonn Money Market Fund that has been giving customers at least 11 percent on their investments.

For March, these were the top 5 money market funds in Kenya: Cytonn Money Market Fund, Nabo Africa Money Market Fund, Zimele Money Market Fund, CIC Money Market Fund, Sanlam Pesa Money Market Fund.

READ: Take Charge of Your Investment with Cytonn Money Market Fund

Try Real Estate

The wealthy around the world are hiding their wealth in gold. This is to cushion their cash in the event the world economy collapses. This has led to an increase in the gold price.

The rich in Kenya are hiding their wealth in dollars. They believe a dollar is more secure than the local currency, which is partly true given the prevailing circumstances.

But if you have some good cash and wondering where to place it, I would advise you to purchase a house. Although people are scared that there will be no demand for the same due to Covid-19, but a house is one of the safest places to “hide your money.” You will always find a tenant one way or another. Buy a house.

Think Online

So many businesses that were not keen on e-commerce before, are now more active than those who were already there. Some online platforms have reported an increase in orders by more than 200 percent.

Millions of people are at home. As some businesses are busy looking for buyers, buyers are busy looking for sellers online. Do you have a business idea? Do you know that the most product being purchased online is alcohol? Why can’t you set up a temporary online wines and spirits shop, deliver to your customers and make money?

Sell Food and Fruits

Kenyans at home need food but very few are willing to go outside for the obvious reasons. Get the necessary permits from the Ministry of Health (you need it) then start cooking and delivering food to Kenyans. Let your food be of quality and your price friendly.

Bank Savings

I know some people believe in banks no matter what. You can guard your cash during this period by opening a savings account that has some good interest. Look for a reputable bank. Avoid small banks that you don’t know much about.

With this pandemic, there is a likelihood of some small banks going down or being sold. It is good to save with a bank that has a wide customer base and a history of time.

Can you keep cash in the house? 

Big mistake. Inflation will catch up with you and your cash will lose value. Again, it is not easy to “save cash” in your house without using it. It requires lots of discipline. Avoid saving all your cash in your drawer.

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READ: What Do You Understand by “Your Investment Earns Interests Daily”?