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