A friend told me he perceives Covid-19 will have three seasons. And I responded, “Health crisis, Economic Crisis, and Energy Crisis.” It sounds profound, but that was what my brain could see.
Everyone can see the health crisis. Thousands of people die daily as during a major war. In many climes, the economic crisis is coming up. National coffers are being depleted without immediate replenishment. And for the energy crisis, oil tanks are almost all full since planes and cars got parked. Many oil wells will have to be shut in, never to produce at the pre-Covid-19 levels again. Who knows if energy demand will go up (to provide for the drones and robots that’ll be deployed) or go down as more people work from home needing to drive less (after Corona).
The little bit easy to tackle now is the Covid-19-induced robbery, looting and lack being experienced in developing environments. Within a few days of lockdown, millions of people who have had prior jobs took to the streets soliciting for financial help. Shortly after, robbery incidents increased. This points to the fact that most people have no reserves.
Yet, the savings are not the main thing; it is the glaring lack of financial education. You’ll observe that many people who were sufficiently employed to not need help in two weeks have come to need help.
Is it possible to discuss financial education without referring to The Richest Man In Babylon published in 1926 and Rich Dad, Poor Dad published in 1997?
Richest Man in Babylon emphasizes the need to save at least 10% of your income, to get your savings earning more, to get off paying house rent, and to prepare for when you will not be able to work again. What if an entire nation had been living by this rule?
In my generation, we have the perfect excuse to the Babylon book: you don’t know how much I earn; that’s why you are “talking like this.”
Rich Dad, Poor Dad got the answer ready right on time: you can attain financial freedom no matter how much you earn.
🤔 How so?
You don’t spend based on how much you want to spend, you spend based on how much you earn! That’s why apartments are in grades, cars are in grades, phones are in grades, clothes, data, shoes, schools, and even meals are in grades.
One rule of thumb is this save before you spend else there’ll be nothing to save after spending. As it is said in Africa, don’t eat with all ten fingers; not anymore.
Picture Credits: Pinterest
Well written! 👏🏿
Well said Lanre.
You’ll agree though that for some, there’s nothing to save because they do not earn enough to even feed for each.
However, I seriously agree that Financial Education is critical, and we seriously need it as a nation, given the trends now.
How can we begin to implement this as a nation? Can we start with the ‘leaders of tomorrow?’
Another issue worthy of note is Medical Insurance or something like it.
For those who are still managing to save, one medical crisis is enough to deplete such savings.
There’s so much, but we will start from somewhere..
Thanks for this…”save before you spend.” Well noted.
The antedote in a time like this truly is one’s savings. I am a testimony. But, it is getting exhausted now if not even outright because I am a petty income earner.
The night of the last two weeks extension, I looked up only to God for survival and I can say thank God.
Once again, importantly is one’s savings.
In the last 4 days, I have been thinking also that there is going to be a serious economic crisis viz-a-viz personal/business financial challenge. I even have to share with a colleague when I was getting overwhelmed.
“That’s why apartments are in grades, cars are in grades, phones are in grades, clothes, data, shoes, schools, and even meals are in grades”.
Wise submission, I must say. Choose your grade based on what you earn.
Thanks for sharing.