Prior to the Covid-19 pandemic and the subsequent lockdown in 2020, not many of us thought of the possibility of getting hit by a mega negative event that could hit and deplete our savings. Occasionally, we have experienced financial emergencies, which were swiftly addressed with interventions ranging from dipping into emergency funds or even borrowing.

However, currently some of us still have lingering effects of the shocks to our income. Even as we try to figure out how to manage our money differently, we are faced with the possibility of a repeat event.

As such, the dilemma most of us are grappling with right now is whether we have built enough resilience to be able to navigate the possibility of another shock to income. For example, have you built up the depleted emergency fund or are you still figuring out how to deal with the mounting consumer debt you used to plug the budget deficit? What is sufficient to give you comfort that you can deal with any eventuality? More importantly, are you better prepared for any lengthy emergency given that you have experienced it in the recent past?

As I have said before, none of us can predict the future, but we can navigate it, better if we are better prepared. Ideally, we should have learnt from our past money mistakes. With those lessons at the back of our minds, we have to do whatever it takes in terms of filling the knowledge and skills gap. This will enable us to generate extra income  and be able to comfortably  face an uncertain future.

Obviously, if you live hand to mouth, it is a tall order to expect you to think about the future. Your priority is the next meal. However, even in this kind of scenario, there is something you can do to improve your situation. You only need to work on the mind to think differently. For example, what options do you have to practice farming in your compound? This can work for those struggling with budget to sufficiently meet the nutrition needs. Even without sufficient land, you can still get old sacks or used containers to create nursery beds that can enable you grow some vegetables. In the worst times, you can have some healthy options to feed your family, as you figure out how to source for more income. Giving up is not an option right now.

On the other hand, if you are still lucky to earn income periodically, you can manage this better by putting in place measures that enable these resources to stretch throughout the month, so as to meet your needs. One area to look at is the expenses side. It’s crucial that you weed out the wastage and enforce a strict budget for these items. If a budget item is not a life and death situation, it can be postponed up to a time when you are in position to afford it. Right now, you need to focus on how to get the best out of your shilling. Don’t forget the meal plans that allow you to manage your grocery budget better. Hunt for bargains and purchase long shelf-life items in bulk, where possible. Watching your utility usage to ensure your household doesn’t waste power or water, is a start.

With some savings derived from avoiding wastage, you can have room to restore some savings. These savings can be applied to different goals. Once they accumulate, then you are confident to look for opportunities to multiply and invest these savings. This will enable you to survive any emergency situation, which will hopefully be at a lesser magnitude as compared to the pandemic.

While we are working with a fluid situation, it is important to plan for all the current and future expenses. However, if you are in the habit of letting life just happen, you will always endure financial stress, particularly when dealing with unexpected events. A rule of thumb is not to let your lifestyle become one huge financial emergency that has no end in sight. It helps to work out contingency plans, which will help you to handle any unexpected occurrence better. At the same time, if you plan your finances in advance, you will make more rational decisions regarding money. However, if you are always in a crisis-mode, you will end up making questionable and poor financial decisions.

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