n times like this, the importance of having a financial plan and managing your finances is all the more evident. You never know when a crisis may break out and leave you uncertain about what the future holds.
Recently, we shared an article on how to manage finances during a pandemic, which also highlights the importance of having an emergency fund for unexpected events. Read the article here.
More people have now realized that having other sources of income is a better way to grow their finances rather than leaving money idle in a bank. For instance, towards the end of the lockdown, we received a lot of enquires across all our social media platforms and our Contact Centre. A lot of people wanted insights on suitable investment options for the COVID-19 season.
Therefore, we decided to find out how some ‘smart’ investors were investing during the pandemic. Here are three (3) people who shared with us, how they choose to invest this period. We hope you learn a thing or two.
1. Mohammed, Banker, 28 years.
I used to think I was great at managing my finances. The pandemic humbled me. I found myself working from home with uncertainties and the security of my job. This made me step up my investment game. Having so much time on my hands, I started trading stocks online using my mobile device. Equities are sure for me this season.
Should you invest in equities? Yes, if you have prior knowledge about investing in stocks and have a good tolerance level. You can pick stocks with good fundamentals too. You can start trading stocks here.
2. Chinwe, Executive, 32 years.
Before the pandemic, I already considered foreign currency investments for the various benefits. Fast forward to now, my Dollar investments help to hedge my investments against the risk of inflation or Naira devaluation. While analysts speak of a looming recession, I am not so bothered. My investment strategy is simple; diversify while hedging my investments against risks.
Should you consider investing in Dollars? Yes, if you have Dollar obligations and want to hedge your investments against inflation. Learn more about Dollar investments here.
3. Ope, Entrepreneur, 26 years.
Times are hard o! How my business has managed to stay afloat is by grace. Before now, I have been investing in mutual funds; money market fund to be precise. I don’t like taking risks. The only risk I am comfortable taking, for now, is in my business. I realized that mutual funds are a good alternative to savings. As a businesswoman […laughs], I prefer an option that provides regular returns and liquidity. My mutual funds even served as an emergency fund at a time during the lockdown.
If you ask me, I’d say I choose to invest in mutual funds like the money market fund which is safe, provides regular income, and liquidity.
Should you invest in money market funds? Yes, if you prefer liquid and low risks investments. Learn more about investing in money market funds here.
In these uncertain times, investing may seem secondary. A lot of people are suffering from the virus, businesses are facing a financial crisis, people have lost their jobs and a lot of people are uncertain of life after COVID-19.
However, the goal is both staying safe and surviving every wind of change the pandemic will bring in your finances and well-being. We have always recommended staying true to your financial goals. Now, you have to add reviewing your investment strategies, and choosing the investment instrument(s) suitable for you at this time.
Besides, having another source of income is a great way to stay afloat financially. And as you know, investments can also serve as passive income. Always remember, when faced with life’s challenges, never quit, rather, find a way to make things work and you’ll be happy when you come out on top.
To know more about our investment offerings, call 07002673767 or email [email protected]