It has been said that we should always hope for the best, but prepare for the worst. I am not a fan of that statement, but I must admit that given today’s reality, it makes sense. Currently there is a global pandemic. Cities are on lockdown, some businesses have come to a halt, people are being made to take unpaid leave or face job termination, the markets are in turmoil. In short, it is not life as usual. So how do we ride the tide in the midst of this uncertainty?
1. Say ‘NO’ to fear.
The last thing you want to do is to make any decision from a place of fear. Fear is crippling and if you allow it to take control of your decision making process, you will dig yourself into a hole that you find extremely difficult to get out of.
If ever there was a time EMOTIONS need to be locked out of your decision making process, it is now. Logic is your friend and ally in this time.
For God has not given us a spirit of fear and timidity, but of power, love and self-discipline.
2 Timothy 1:7 (NLT)
2. Face the Truth
Face the truth concerning your current financial status. What is your current net worth?
List everything down. How much cash do you have? Do you have an emergency fund? What about other savings? What is the state of your investments? How much debt do you have? When are they due? How much is due? Are you up to date with your utility payments? What about your rent?
I will not lie, this will not be easy to do. But, you must make your decisions from a place of KNOWLEDGE.
Then you will know the truth, and the truth will set you free.
John 8:32 (NIV)
3. Budget
Now that you know where you stand financially, it is time to WRITE down your budget. You want your budget to be as lean as possible. Your budget should focus on:
i) Shelter – before you allocate your money to other areas, make sure you have a roof over your head.
ii) Food – set aside enough money to feed yourself and your family. This is not the time to splurge on eating out. Be very disciplined with your grocery budget.
iii) Utilities – electricity and water should be your priority. If you are working from home, internet may be a necessity as well. Streaming services are however not a necessity. Depending on what ‘facing the truth’ revealed to you, you may need to let go of some good to have, but not necessary subscriptions.
iv)Transport – if your city is not on lockdown, be sure to have enough fuel or fare to take you where you NEED to go.
v) Emergency Fund – if you do not have a fully funded emergency fund, allocate money towards it. A fully funded emergency fund should be able to cover at least 3-6 months worth of your living expenses. Do not be discouraged. Set aside whatever you can, no matter how little it may appear. Any extra cash you get, should go towards your emergency fund.
If you do have a fully funded emergency fund, consider buffing it up further. In times of uncertainty, you want to hang on to cash.
vi) Investments – this should only be applicable to you if you have a fully funded emergency fund and you want to take advantage of the current low prices. However, do not be greedy. Take a disciplined, consistent approach as opposed to a huge lump sum approach.
Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it?
Luke 14:28 (NIV)
4. Speak to your Creditors
If you are unable to make your debt payments, speak to your creditors. A lot of financial institutions are putting in place measures to assist you. But you will not know what measures may be of assistance to you if you do not speak to them.
The wicked borrow and do not repay […]
Psalm 37:21 (NIV)
5. Don’t Cash Out Your Investments
The value of your investments has probably dipped drastically. Fear will probably tell you to pull out the investments before they decrease further in value. Please do not give in to fear.
The investment losses you are likely experiencing are book losses, meaning you will only REALIZE the loss once you sell them. Until then, you have not realized the loss. Instead, let your investments be. The markets will eventually recover. When? Noone knows. But history tells us that they WILL recover. Remember, investing is a long-term game. Have a long-term view.
Only dip into your investments if you ABSOLUTELY NEED TO.
Whoever watches the wind will not plant;
whoever looks at the clouds will not reap.
Ecclesiastes 11:4 (NIV)
6. Remember Love
Emotions are running high. People are gripped with panic and fear. People need to SEE Jesus now! Practice love. Not the emotion love…but the ACTION:
Love is patient, love is kind. It does not envy, it does not boast, it is not proud. It is not rude, it is not self-seeking, it is not easily angered, it keeps no record of wrongs. Love does not delight in evil but rejoices with the truth. It always protects, always trusts, always hopes, always perserveres.
1 Corinthians 13:4-7 (NIV)
This is not a suggestion, but a COMMAND.
“A new command I give you: Love one another. By this all men will know that you are my disciples, if you love one another.”
John 13:34-35 (NIV)
7. Put your trust in God
Do your part, be willing to adapt to the changes that may force you to rework your plans. Be diligent with the resources that God has entrusted to you. But don’t put your trust in your plans, on your emergency fund, on your health. Put your trust in God!
Trust in the LORD with all your heart and lean not on your own understanding:
in all your ways acknowledge him, and he will make your paths straight.
Do not be wise in your own eyes;
fear the LORD and shun evil.
Proverbs 3:5-7(NIV)
Be blessed ☺