Welcome to a new week. I trust that the last week was a fruitful one.
In continuation of our countdown to 2021, we will be discussing some of the ways we can individually respond to the challenges expected from the Nigerian economy (as outlined in the article of last week).
Continue to recession proof your finances – it is no secret that Nigerian economy is in a recession that is expected to extend into the New Year. Therefore, it is critical we take this into cognizance in our personal finance journey.
In the words of “The Motley Fool”, your investing skill is not proven until it has survived a recession.
As such, it is advisable that we continue with the basics:
o Maintain an emergency fund
o Keep expenses low
o Diversify our sources of income and investments
o Continue to save and invest.
o Diversify your currency holding

Maintain enough discipline to enforce your risk tolerance threshold – if 2020 has taught us anything about investing in Nigeria, it is that “if it is too good to be true, it is too good to true”.
We need not look further than the increasing number of defaults in the Agrictech space. According to Businessday newspaper, AgroPark, HO Corn, Farmzhi and Payfarmer are some those currently owing subscribers.
Another notable name, Thriveagric has already commenced redemption of due investments,
The key takeaway is that high yielding deals and investments will always appear and we need to analyse whether or not we have the risk temperament for them.
It is very important to always keep in mind that is better to earn little or no interest than to lose your principal amount.

Be satisfied with low margins – one constant thing about investing is that the markets are cyclical and continuous; meaning that there will always be periods of boom and bust, highs and lows, growth and recession etc.
The awareness of this fact is key as it helps patience, is an important virtue for any investor.

Take advantage of opportunities as they come – In the words of Richard Branson, “business opportunities are like buses, there is always another one coming”. Like business, like investing; opportunities.
Locally, even though treasury bill rates have been at historically low levels, many investors have still maximized their returns either from the stock market, FGN bonds, Eurobonds or even through capital appreciation (by diversifying from Naira to other currencies).
Other opportunities such as angel investing and real estate also abound for those willing to invest for the medium to long time horizon.
These opportunities are still expected to abound in the coming year and to take advantage; you need to not only to have investable funds but position yourself accordingly to take advantage.

Please remember that new COVID 19 cases are being reported in Nigeria, especially in Lagos State and as such we must continue to take personal responsibility for ensuring our safety.

Kindly remember that there is still no cure for the corona virus and that prevention is always the better option.

Keep washing your hands, maintaining social distancing and wearing your face masks in public.

Till next week, do have a wonderful week ahead.

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