Can this model be the path to follow to grow your business and personal finances after the lockdown?
COMMENT | JEANPO OLOWO | Crisis brings clarity. In times of fear and uncertainty, extended lock down, stay home directives, non essential business closures, curfews, social distancing for your own safety and wellbeing you can’t help it but reflect on your business and personal finance reservoir. Before March 2020, life was normal and presumably good. Today I don’t think one can confidently make such a remark in regard to their business or personal lives.
Uganda’s economic scenario has deteriorated due to COVID-19 and its forecasted by economist to continue going down. Quarter four of 2019, registered accelerated growth of 5.6%, however it’s clear that COVID-19 measures put in place have affected us and are going to affect these numbers.
Youth in Uganda are the youngest population in the world with 77% being under 25 years of age. About 700,000 reach working age every year, but the economy creates only 75,000 jobs leaving almost 70% of Ugandans employed in subsistence agriculture. As much as a steady economic growth has been registered not many jobs have been created. The unemployment rate is forecasted to reach 2.40 percent by end of 2020, and this could go higher as a result of COVID-19 measures put in place.
A very small segment of the employable population is employed in the formal sector, others running own businesses, others juwakali’s – earning a daily income and a bigger majority unemployed. The truth of the matter is we all fall in either of the categories.
Lock down has been common to all, and we have had time to reflect on many aspects of our lives including our finances. Findings will either fall on the positive or negative side of the curve. With a lot of time resource, we need to assess our business and personal finances asking questions like what are we going to do to snap out of the situation we have all found ourselves in, what must we do to improve or sustain our financial reservoirs post-COVID-19?
Your assessment would cover aspects like assessing your income and expenditure-inflows and outflows, spending and saving habits, and your emergence fund if any – can it sustain you for the next six months if your inflows were to be cut off? Others are your children education fund, your retirement strategy- goals, plans, and savings if employed, and your short term, medium term and long-term financial goals. These would help you understand your current situation-which is your baseline to plan for your future, post COVID-19. And for those who are unemployed, they could devise ways of being job creators. We certainly know that life will never ever be the same.
In conclusion, for your path moving forward and solutions to growing your business and personal finances, you need be deliberate and put these suggestions in place. You need to establish simple financial processes that will help you achieve your planned goals and objectives. These would include understanding basic financial literacy, understanding concepts of income and expenditure, cashflow analysis, investment strategies, leveraging, risk management, savings, find good soil for investment and adopting simple models of managing your finances.
This Jewish financial management model could be your immediate starting point and part of your culture moving forward. Take your total income, give 10 percent to God, 10 Percent to giving alms/offering, 20 percent to Savings, 10 percent to Investment and only 50 percent for all your needed expenditure. This would be a start to your success and growing your business and personal wealth post COVID-19.
Dr. Jeanpo Olowo, email@example.com
Advisor/Consultant: Financial & Business Operations
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