Old Mutual Malawi Limited has unveiled a five-point survival plan to help individuals navigate turbulent economic times, particularly in the face of potential job losses.
The plan comes in the wake of the recent US President Donald Trump’s Executive Order 14169 titled ‘Reevaluating and realigning United States foreign aid’, signed on January 20, ordering a 90-day pause on all US foreign development assistance programmes pending a review.
In a statement yesterday, Old Mutual Malawi Limited financial education manager Benard Chiluzi said while the stop order could be temporary, it is important to prepare for any potential long-term impacts such as job losses and increased stress.
He said at Old Mutual Malawi, they understand the importance of financial resilience during uncertain times; hence, providing five survival tips.
First, Chiluzi said the affected people should prioritise needs over wants and focus on essentials such as food, rent, utilities and school fees for dependents.
“Temporarily reduce spending on entertainment, dining out and luxury items. Furthermore, track expenses by using a simple budget tracker to monitor expenditure and identify areas to cut back,” he said.
Secondly, Chiluzi said there is a need to start saving to cover basic expenses in case of job loss or income delay, adding that there is a need to automate the transfer of savings into an instrument that brings growth to the invested money, citing investment options through OldMutual Unit Trust.
Thirdly, he said this is also the time to think of starting a small business to generate additional income in case the situation turns negative.
Chiluzi said the fourth survival tip is to negotiate with lenders for more flexible repayment terms or lower interest rates in situations where one has a loan.
He said because financial challenges affect the entire household, there is a need to have an open conversation with the family about the situation and explore ways everyone can contribute to cutting costs.
Old Mutual is a financial services group that has been operating in Malawi for the past 70 years.
