To save, invest or hoard? Navigating the COVID-19 pandemic

To save, invest or hoard? Navigating the COVID-19 pandemic

Apr 20, 2020

3 mins

Augustine Ogwo

Augustine Ogwo

With the current issue rising as regarding the novel COVID-19 pandemic, quite a large number of people have been worried about their personal finance. People want to know whether they should save, invest or hoard their resources until this whole thing blows over.

With the current issue rising as regarding the novel COVID-19 pandemic, quite a large number of people have been worried about their personal finance. People want to know whether they should save, invest or hoard their resources until this whole thing blows over.

With the current issue rising as regarding the novel COVID-19 pandemic, quite a large number of people have been worried about their personal finance. People want to know whether they should save, invest or hoard their resources until this whole thing blows over.

In this article, we will help guide your thoughts by addressing each of these possible situations. So question is - Should you save, invest or hoard in these COVID times?

For emphasis, this generation has not witnessed this sort of pandemic before. Globally, economies and nations have literally shut down due to the COVID-19 outbreak.

The sheer magnitude of the pandemic alone has triggered an overflow of information across media channels. Even though this pandemic is new, we are hopeful that a solution will be found soon.

In Nigeria, most states have tried to reduce social interaction by introducing curfews. The Federal government earlier announced a total lockdown of badly hit states like Lagos, Abuja, and Ogun for an initial 14 days and have since extended the lockdown by another fortnight. This has definitely reduced disposable income and posed a huge threat to personal finance.

People are therefore wondering whether to hoard, save or invest.

Now, let’s take a look at what we should be doing and those things we shouldn’t be bothered about.

To save or not?

To be honest, if you have nothing to save due to a number of reasons, you obviously can’t save. So it becomes imperative to look into your physical and mental health. If you have run out of money during this pandemic, there is nothing wrong with dipping your hands into your emergency funds.

If you are fortunate to still have a source of income, it is important to keep saving a percentage of your income. Seek out savings platform that allows you to withdraw at any time without paying penalties and also gives you a favourable yield on your savings.

More importantly, you have to cut off unnecessary spending. Every Naira counts!

To invest or not?

Seeking investment opportunities at this time isn’t such a terrible idea but you need to be smart about it as the stock market is plagued with uncertainties and the world is plunging into an economic recession.

There are low risks, medium risk, and high risks investments. We suggest you pick low and medium risks as you may not lose all your funds, however, it is important to note that the returns on investments may not be as encouraging but you will get something in return more than just saving your money. If you choose to go for a high-risk option, we suggest you use a percentage of your income so that in event of a loss you would have enough in your savings and lower risk investment plans to fall back on.

To hoard or not?

It has never been a good idea to hoard anything whether in terms of money or materials. Seek out any option to multiply your income in this lockdown.

Stocking up with groceries and household essentials is a necessity in this pandemic. Despite the similarity, this shouldn’t be confused for hoarding.

While it is important to stock up what you need at home for maybe a period of one month, it is not necessary to buy up everything in a supermarket just because you can. This is not a famine. Also, remember those who do not have enough and share with them.

All hope isn’t lost ❤️

The economy is continually faced with a huge threat every second as this pandemic continues.

One thing is certain though; things can only get better. A positive mindset might be all you need right now.

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