By Phillipa Nanyondo Wavamunno & Lynda Nabayiinda Were
57% of Ugandans were unable to sustain their lifestyles one day into the lockdown. After 15 days into the lockdown, the number rose to 81%. The statistics are based on research done by the Financial Sector Deepening Uganda (FSDU) together with the Ministry of Finance and published in the New Vision in May 2020.
“Disruptions are here to stay, so we must be prepared” – Tony Elumelu.
This year has hit us with a lot of unexpected surprises that have affected us in almost all spheres of our lives but more so financially. The outbreak of COVID-19 and the effects of the pandemic on the economy has made people nervous about their finances. Studies show those fears are heightened right now, but anxiety about managing finances isn’t a new feeling for many people.
How do you maneuver in these times? If you don’t have money to manage a few months of no income inflow, how will you manage to plan for retirement? How do you manage your finances in this new financial era?
Visualize a table with one stand (table A) and another with 5 stands (table B) holding it up. The stands represent your streams of income and the table top represents you. If each of the tables lose one stand, only table B would be left standing. This is the same notion with our finances; when we depend on one stream of income maybe it’s a job or business and the stream collapses we are left with no foothold. If we stem our streams of income especially in unprecedented times like what we are currently experiencing, we guarantee ourselves financial stability as a result of the different cash flow avenues.
“A few years ago, I lived in Bukoto and worked in town. My husband loved popcorn and he frequently asked me to get him some on my way home. My main hurdle was that the closest supermarket Nakumatt Bukoto had no popcorn machine so I had to drive all the way to Ntinda and then back. Due to this ongoing frustration, I approached the then Nakumatt management and asked if I could set up a popcorn stand which they accepted with no hesitation. A few weeks into my new side venture, I was asked by the management to set up more stands in their other branches. I managed to increase my cash flow from an idea that was birthed from my husband’s love for popcorn,” says Phillipa Wavamunno, co-founder of Ascenify Uganda.
Companies Rise or Fall on How Well They Renew Their LeadersShe adds: “The reason I was able to do this is because I started a solution based business and had good personal financial literacy skills that gave me the capital to start. When it comes to starting a side income stream you can base it off your talent, passion or what you studied. You can start with zero and offer a service depending on what you are good at. The only way to keep business growing is through good personal financial literacy management.”
“Personal financial Literacy is a life skill that everybody should have regardless of age, sex or level of education. Unfortunately it is not accorded the necessary attention thus leaving most people grappling and practicing trial and error on something as critical as money matters,” says Linda Were, co-founder and facilitator at Ascenify.
Ascenify Uganda offers online classes on better personal financial management designed to equip the attendees with practical and easy to implement skills. The class is designed to give guidance on how to set financial goals by maintaining budgets that stimulate a clear saving plan. Additional benefits include learning the hidden secret of handling windfall income, how to get started on that side hustle, or additional stream of income that you have been putting off and managing your current debt. The class puts into the light on how you can get out of the vicious cycle of debt through informed controls on investments and financial management with the aim to guide on better decision making from the seemingly complex financial world. Register for the class today at www.ascenify.tech.
Phillipa Nanyondo Wavamunno is a quantitative economist and currently a banker with a bias in credit management for the last 13 years with a Master’s degree in Business Administration from Esami University and certified leadership course from Strathmore Business School.
Lynda Nabayiinda Were is scientist turned Service Experience leader in the service sector (banking and telecom) with a Master’s degree in Financial Management from Uganda Management Institute and certificate as a Bullet Proof manager from Crestcom international.
