Coping in a tough economy
Mustapha met one-on-one with Charles Bwogi of NTV Uganda on the economy. Charles is in bold, below:
The Uganda Economy is said to be experiencing a downtime, how would you advise people to cope?
Our Economists are yet to advise us of how the economy is fairing. But going by the facts on ground, it is tough: we’ve just had four public holidays. After a highly monetized election, that saw social media and mobile money censor. Economists estimate that action could have cost a lot of money to the economy! Now Brexit has happened upon us.
Being a former colony of Britain, there will be repercussions in terms of aid in flows and business investments. Britain is a big investor in Uganda, and they will do everything to protect their pound. This could mean reducing the support they extend to the country and transferring some jobs back home! We have to plan for the days ahead as for sure, no one can precisely predict the future. Your best weapon is effective planning.
To cope you need;
1. Prioritize your expenses. Don’t make a budget. That is too theoretical. Make a list of priority expenses and allocate your incomes based on those priorities
2. Analyze where you spend most and reduce. If it is high rent, go to a cheaper house? Or Food? Buy food from the market. The secret to winning is taking quick decisions, and sticking to them. Avoid delaying to take decisions only changing them fast!
3. Avoid spending more than 20% of your net total income on rent.
4. Establish a loving strong network and start group savings
5. Don’t help dependents who are lazy and unfocused. You are better off helping non-relatives with high chances of success. Focus on education support and teaching dependents on how to fish