During this period of the Covid-19, the Government of Ghana has stepped in with a stimulus package to help small and medium scale enterprises stay in business.
A study by the Ghana National Chamber of Commerce and Industry (GNCCI) has shown that an estimated 108 businesses have lost a minimum of GH¢39.8 million to the coronavirus pandemic which broke out in the country on March 12. On Tuesday, May 19, 2020, President Akuffo Addo launched the GH¢1 billion Covid-19 Alleviation Programme Business Support Scheme, which is being provided by the government and partner agencies to small and medium-scale businesses in the country. The pandemic has thus, demonstrated the need to be financially prepared at all times irrespective of the business scale. The following presents principles on what you can do to keep your money safe after Covid-19
Cut down and eliminate your debts
Make the conscious of efforts to cut down and eliminate your debts which may include personal and business loans. Your debts in the case of business and personal loan incur interest which can take a chunk of your monthly debt repayment allocation.
Cutting down and eliminating your debts gives room for available funds to be redirected into more profitable gains such as investments and business expansion.
Have a passive income
There’s always great benefits to boosting your income. Having a ‘side business’ so to say, that you execute in the evenings or over the weekends are great to help pay off your debt faster and fulfill other financial obligations you may have. The internet offers a lot of business opportunities you can take advantage of to earn a secondary income stream. All you will need is your computer or your smartphone.
You can also begin by researching into what consumers need at the moment, draft a simple business implementation plan, and begin to execute.
Set-up an emergency fund
Setting up an emergency savings fund that takes care of unforeseen expenses such as the current pandemic is a solid financial idea. Businesses and individuals with emergency savings funds are most likely to fare better in any crisis.
The International Labor Organization (ILO) predicted that 25 million jobs will be threatened by the coronavirus. This is a staggering number and should drive you to hedge against financial uncertainties.
As a business or individual, target an amount that would provide the comfort of at least six months for business operating expenses or your personal financial goal.
Diversify your investments
As the saying goes, “don’t put all your eggs in one basket.” Diversifying your investments helps limit financial loss. Depending on your comfort level with risks, you can go for a 60% investment in stocks and 40% in bonds. However, if you want to go risk-free, treasury bill is a great alternative.
If you have the resources, seeking an expert financial analyst will be the sure way to gain insight into the right investments that are best suited for your business and personal self.
In conclusion, the coronavirus pandemic has taught us one key thing which is being prepared. Always be prepared for a crisis.