Surviving and Thriving During Harsh Economic Times

The impact of the Ukraine war has affected not only the global economic position but also Kenya’s economy. This has made it very tough to recover from the economic effects Covid-19 pandemic. Additionally, the current drought has been devastating, further worsened Kenyans’ livelihoods, and caused a recession. Food security is quite essential to our livelihoods. The above factors have increased global and local commodity prices fuel and, subsequently, prices of goods and services.

During a recession, consider taking intelligent risks to avoid jeopardizing your financial goals. A recession could harm your finances. However, with intellectual monetary habits, you can protect yourself financially ahead of time. These ideas include having emergency funds, multiple sources of income, controlled spending, diversifying investments, and real risks.

Without further ado, let us delve deeper into some tips to help you thrive in a recession;

  1. Diversified and long-term investments

The market is known to be cyclical, which means that in the long run, the cycles of an economy remain systematic in cases of economic expansion, economic peaks, recessions, and recovery. For example, if the market pushes your investment down by 10%, you shouldn’t be worried if you don’t sell your asset. You will thank yourself when you sell the asset after the economy recovers. You are also encouraged to diversify your investments instead of placing all your eggs in one basket. Make smart decisions when making investments before or during a recession that shall promote maximum profits. 

  1. Multiple sources of income

Having a great full-time job or business is a great idea, but it is ideal to have an additional source of income. It is therefore essential to have multiple sources of income to supplement current income and also to cushion against loss of finances in case one source is adversely affected. As mentioned in our previous article, this could be a service or consultancy job. 

  1. Mindful spending

Make a habit of living within your means. With this, you are less likely to get into debt. Consider mindful spending and adapting coping strategies that can save you a little money on your expenditure. Switching to cheaper outlets and brands, purchasing household items with promotions and deals, and avoiding take-out or dining out are some coping tactics to adjust your income during these harsh economic times. 

  1. Revisiting your budget

If you had a budget before the recession, it’s high time you revisit and review it and make sure it works in your best interest, depending on the current financial situation. Then, as you draft your new spending plan, remember always to take care of your necessities, cut spending habits, live within your means, and control your debts for a more fruitful and flexible budget. 

  1. Innovative practices

Developing advanced and new practices will aid you in adapting to the changing market demands and the latest marketing conditions and allow you to stay ahead of your competitors. If you own a business, consider using technology to market and distribute your products. Technology is known to reduce costs, increase efficiency, and improve the competitive ability of your business. Additionally, speak to financial advisors and consultants to help you and your business survive a recession. Amica Savings & Credit takes great pride in offering free financial literacy to all members aspiring to thrive financially and beat tough economic times.

According to Maxwell Maltz, most crises are opportunities to advance or stay where you are. Use this opportunity to grow financially. 

Talk to us if you need a friend to help you Plan Smarter so you can Live Better.