It is no longer news that the prices of goods and services are skyrocketing on a daily basis. The inflation rate cuts across every sphere of life, business, construction, technology, industry, education, health etc. It remains pertinent for us to examine the consequences and how to navigate the economic season.
Navigating this time requires intelligence and proven strategies to safeguard money and protect financial future amid uncertainty. The brighter side is that there are ways to cushion the effects.
Three ways to keep afloat these times:
- AVOID INVESTING IN VOLATILE SECTORS.
When the economy is down, it’s natural for investors to be curious about what to invest in to stay afloat. However, there is a need to act cautiously and remain vigilant in monitoring the market landscape for opportunities and most importantly make informed decisions. Jumping into any type of investment at this time can be very risky, to be on the safer side, talk to an investment advisor. If you want to invest in businesses, it is advisable to invest in well-managed companies that have low debt, good cash flow, and strong balance sheets.
- INCREASE CASH RESERVES.
This is the time to be prudent in spending. It’s always a good idea to go through your monthly expenses and identify services or items you don’t need and which items are a necessity. Expensive dining out, vacations or anything that one would potentially consider a luxury expense may be reduced. Implementing these will help save more thus increase cash reserves.
- FIND PASSIVE MEANS OF INCOME
Passive income does not mean one will not do anything. It requires an upfront investment before dividends are made. Adding passive income streams to your portfolio can help you increase your earnings and accelerate your financial goals in tremendous ways. For an existing business, diversification might be a good idea. A rental property is a fantastic way to bring in an annual passive income. Land banking is another way to hedge against inflation.
As we navigate through these times, let’s note that informed decisions are crucial to safeguard the future.
For professional advice on real estate investment, you can talk to us. Send an email to duo@mixtafrica.com
