Thread by @Global_ImpactNG

How To Manage Your Finances During The Lock Down
By: Jide Adeola | Partner at PwC, Finance Analyst and Management Consultant.

i) First step: Don’t panic
Although this sounds basic, it is very important. In the past week, we have seen a significant surge in the number of households purchasing items on panic.

When you buy things under duress or with panic, you may end up acquiring things that are not essential for waiting this period out. You should also not make any investment decisions under duress.

ii) Second step: Assess what you have and prioritize: Families must prioritize what is important at this point and focus mainly on things are really needed by the households. You need to reduce/limit/eliminate spend on non-essential items.

Use a budget that is aligned with your capacity.

iii) Do not expose yourself to unnecessary credits
Avoid cheap/easy to get credits. Some organizations see this period as an opportunity to offer credit to individuals.

Unless it is utterly necessary, it may be a great idea to avoid them.

iv) Negotiate
Contact your creditors/ debtors and negotiate. Some families have mortgage loans, personal loans, petty trading loans etc.

This is the time to call up your creditors and negotiate more effective payment terms starting with a minimum of say 3 months moratorium on principal etc. For debtors, you may negotiate early payment for a factored amount.

v) Be careful - Be aware of scams.

vi) Engage in trading activity – You can act as a middle-man and take some value in the process. Remain innovative in the process.

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