As we hear the news and see so many damages Covid-19 has done to our financial markets, my mind goes to the small businesses, side hustles, that entrepreneur who was just finding their foot in this competitive market! Are we going to survive the hard kick from this, what kind of entrepreneur personality are you? Is the question l get to ask myself?
How many actually plan for uncertainties or we only look on the bright side and plan accordingly. No, I am not encouraging a negative mindset, but life has uncertainties and as a business-minded person you must always have that provision if things go haywire, what to do in times like that? Weeks ago, l shared an article on budget stress testing, you can read about it here and l get to ask myself how many individuals have actually put this into practice.
Do companies and individuals actually do budget stress testing? From the survey, l contacted many are in the panic mode which just tells me that they were not really prepared. I spoke with one of my friends and she was telling me that they will be paid 20% of their salary because they had only worked 1 week of the month. That was before the lockdown and now l am just thinking of her with this lockdown how she is going to survive. This is truly a hard time for everyone, what is the best way to handle this?
I just came across two financial survival tips which I will share below:
- Apply for a payment holiday
Payment holidays are simply a freeze on commitments such as bonds and loans for a certain period. I advise this for only people who are in a financial tight position like the example of my friend l have given above. In common sense, there is no way she can cover all her expenses with 20% of her income only. If you are in the same situation, avoid the stress and go straight to your bank and apply.
- Access Credit insurance
Credit insurance is a policy that pays your debt in times of unfortunate events like when you die or become disabled or sometimes get retrenched. Most credit providers here in South Africa have launched “Covid -19 debt relief holidays” where debt repayments are extended for a period. Many people do not know that they have, check if you have credit insurance and make use of it.
As overwhelming as it can be, when we not sure how our tomorrow is like. It is also good to revisit the terms and conditions we signed and understand if they are no reliefs in place which can help us with reducing and managing financial stress levels.
Let’s continue having the faith and hope. Together we can fight this. Always remember good hygiene practices and social-distancing.
Arthur: Talent T Manyonga