As I write this, I am watching the South Africa president address the nation on the plans that are underway to help the country deal with the ripple effect of the pandemic. He announced that the government has set aside R500 billion to be disbursed to companies, individuals and parastatals. Of interest is the monthly grant that will be given to the individuals for a period of 6 months. What this shows is that they are expecting the pandemic to last a bit longer and therefore in it for a long time.
Whilst this is not the case for us, we know very well that when South Africa sneeze, we catch the cold. Even though the number of cases in Namibia remain at 16, we cannot expect the economy to return to normal anytime soon. We need to be ready for what lies ahead. With that being said, below is our tip of the day.
Re-think your financial plan and re-look at the your personal balance sheet.
A financial plan is your roadmap going forward with regards to your money matters, whilst your personal balance sheet is a stock take on how much assets you have & what liabilities you owe.
So take sometimes to re-look at your roadmap and see if you still want to continue with the same route or you would like to re-direct it elsewhere. Here is how a few friends and I charted ours in light of this:
- For me – Honeymoon savings will probably not be a priority anymore. After all this, I will rethink twice before taking a plane so that will need to be diverted to a local destination or amount lowered as that will not likely to be immediately after the wedding.
- For my one friend – she reached out to asked my advise on wanting to buy a ford ranger. After doing the math I could shed some light on her affordability assessment and the stability of her job and also her plans to start a family sometimes in the near future. She concluded that she is indeed not really able to afford the car at the moment. She has also decided to maybe focus on building a flat on a plot she bought a while back so that she can move in there instead of waiting for bank financing for a big house.
This may sound minor or drastic but the point is to re-look your plan and see if there are any adjustments where necessary. You could get to a conclusion that life is all good and no changes necessary but you might be surprised a few things may require changes.
Until next time, stay safe!