By Sidney Kawimbe
In last week’s article, I outlined some basic strategies on how one can survive the harsh economic realities. I received varying feedback from a cross section of society. Thank you a lot. In this week’s discourse, I will start by reminding my dear readers that our country’s economic fundamentals do not paint a rosy picture, what with the raising of the Monetary Policy Rate (MPR) by BoZ from 10.25% to 11.25%. The immediate implication is that the cost of borrowing will commensurately rise, further chocking the already capital deficient SMEs. At personal level, what this means is that if you have borrowed money from a financial institution, the amount you pay monthly to service that loan will go up or if it remains static, your repayment period will inevitably increase. One can easily discern that things will have to get worse before getting better. Below are some ways to adopt so you can survive and avoid running into debt.
- Avoid Expensive Assets
Expensive assets are assets that produce little or no income, but generate huge maintenance and running costs. Generators may be cheap when bought are but are sometimes very expensive to maintain, it would therefore be prudent to invest in a once off expense in solar installation if you’re a landlord. If you are a tenant, discuss with your landlord that that you install a solar system and they knock off from the rentals; that is if your landlord is rational. A light bulb is an example of an asset that generates high operating cost by adding to your electricity bills. Energy saving bulbs are better suited. Expensive fuel guzzling cars are another example.
- Sell Unwanted Assets
Following from above, if you have assets that are a financial drain to you, then sell them. I remember a friend who had a car that he kept repairing. At the end of the month he realised he was spending more money on fuel and maintenance than he would have, had he used public transportation. Of course, he sold it and went for public transport
- Downgrade your TV subscription
It is pointless maintain an expensive bouquet which you are only able to watch for an hour only; courtesy of load shedding. Downgrade to other cheaper forms say Go Tv or even use your smart phone to catch up with news and your favourite EPL
The Author is An Entrepreneurship Trainer
For Details: skawimbeATyahooDOT
com
we should brace ourselves. the coming months wont be easy. we struggled to raise $27 to million to pay ESKOM. what more of those millions due in 2022? ala zambians, mukalya amaloba.
When the Privatisation Thief goes away and brings back the tax H-evasion money from PANAMA, Zambians shall survive the H-austerity measures of CHILDISH.
The only way to survive is to replace the two political leaders out HH and Lungu.
These guys are poisonous to our country.
They are both corrupt and they have stollen enough
Another basic article, boss we know all these please tell us something new.
Useless article. Next he’ll advise us to eat cardboard. He needs to address the CAUSE of this sh**. This country is NOT poor it has been made so.
cut the # of cops in half. they don’t do nothing other than what p f tells them
when lungu is travelling, only two security detail. no need to empty the whole police station to see him off…for security, ain’t nobody trying to k ill this loser. no cadres or a sh itload of ministers seeing him off or welcoming him.
have his trips as well as others ministers approved by a non partisan body
have anyone who becomes president/minister’s accounts monitored. if it goes up by 300% in three months when the country’s gdp is still the same. have a real audit team of non Zambians do their work and sell off all asserts
what’s the name of the presidential jet? get rid of that and reinvest that money into a solar farm somewhere in the southern part of Zambia or where daylight is heaviest in…
I like the idea of leapfrogging: for example going straight to mobile devices without investing heavily in landlines. But there are some aspects of western development that can be learnt from: using forests as the engines of development for example (and tackling climate change into the bargain).