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How To Build Enduring Wealth In A Turbulent Economy.
[Image: Recession930X620.png]

This personal finance article aims to prepare our dear followers ahead of the turbulent season in Nigeria- The Looming Recession!  

As we head towards recession, what are your plans? How do you intend to survive the economic realities? How do you plan to play in the market?  What type of assets would you be buying, considering the low yield environment as we all know the current true position of the fixed income market- the usual safe haven for everybody. These questions and more of such are begging for answers as the impacts of COVID19 are beginning to unfold gradually. Are you prepared, my people?

I strongly believed that this platform owes you this privilege- What we are about to teach would aid your strategies in preparing against recession and give you a clearer perspective on the type of investment or stocks you should be patronizing when the recession finally sets in.

We are going to put economic and investment realities in context- not only that but this article would also put forward some simple step-by-step actions on how you can battle and survive the looming realities from both personal finance and investment fronts.

As we all know, the Nigerian economy is projected to slide into a recession by end of Q4’2020 – this means you have been warned ahead.  At least, you have enough time to research, study, plan, prepare, and fortify yourself in advance.

As we all aware, the major factors that are driving this anticipated recession are stemming from the effect of the pandemic, which had negatively impacted both global and domestic business environments drastically.

As you can see, Nigeria is already combating currency devaluation, inflationary pressure, weak revenue and gradually becoming a debt-ridden nation in the face of dilapidated infrastructures that are meant to cushion some of these hardships.

Not only this, citizens- (working middle class, and low-income earners) on a large scale are battling deteriorating income, low purchasing power in the absence of low impactful stimulus packages. In a situation where both supply and demand sides are likely to be hampered greatly, just as we are already experiencing in Nigeria, both corporate and personal finances are likely to be battered while investments are not immune.

In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit. Investment may not thrive in a country with weak microeconomics fundamentals, shrinking disposable income, and a bleak future. Please note; the current macroeconomic problems go beyond these key issues of low-revenue, a weak currency, and shortage of FX - security challenges are compounding this.

How Would This Affect You?

This is the reason we all need to understand personal finance strategy, so we can tackle this and safeguard our finance and investments- It is important you have a personal strategic plan.

As we have carefully highlighted above, one does not need a soothsayer to know that one needs to more careful while searching for investment opportunities in the stock market. You would need to design a strategy to take a position in great stocks at a HUGE discount. In this case, one needs to be very close to the market, cautiously monitoring happenings, and developments.

On Personal Finance Front

Design a strategic plan to put your income, expenses, and disposable income in good shape. Let the focus of your plan be on how to INCREASE your DISPOSABLE INCOME -Investments are usually hampered when disposable income is low and weak.  The more disposable income you have, the more the investment you have for yourself and the higher the economic balance and growth you attain during the turbulent period.

Your disposable income is what you have left after taking care of all your essentials - you may need to pen down your expense and chart on excel to see the true picture- with this, you would know at a glance where your money is going.

How Can You Increase Your Disposable Income?

You may need to devise your personal and suitable ways of growing your disposable income. Nevertheless, here are some tips you can start with:

Cut your expenses and spending, improve your savings habits, invest in passive income business (side-hustle), and cut down on BAD DEBTS (loans used to acquire depreciating assets). Please note that all tips mentioned above require methodology, strategic plans, and self-discipline.

For instance, SAVINGS is not easy as it sounds- One of the best ways to achieve tangible savings is by paying yourself first and attach a goal to your savings- e.g Saving To Buy A House In 3Yr's Time.

You may set up a Direct Debit/Payment system into a COOPERATIVE INVESTMENT ACCOUNT or Mutual Fund that pays dividends regularly. With this system in place, your savings would grow over time. A lot of Stockman Cooperative subscribers are achieving great results with this strategy

On The Investment Front

Your game plan should focus more on capital preservation while we would advise you to be cautiously optimistic towards available opportunities in the market. Please note that we would be considering the stocks market only as everybody has been shut out of the fixed income market for now

What Type Of Stocks You Should Be Buying In A Difficult Environment As Recession Looms

It is important you avoid stocks that are highly leveraged, carrying so much debt on their balance sheets- because the possibility of bankruptcy would be potentially high, particularly those companies that have FX exposures.  Please note that you can’t trust or rely on a low debt-to-equity ratio, which could be tricky or misleading if revenue is severely threatened. For instance, Nigeria has low Debt-To-GDP-Ratio but has revenue challenges as the revenue or income stream is battered and threatened.

Just keep in mind that the more debt or exposure companies have, the more vulnerable they are during a recession. The same thing goes to revenue, the more the revenue is threatened, the more vulnerable companies are. Please have in mind that there are sub-sectors that are capital intensive e.g telecoms- in this case, the cash-flow analysis would guide you here.

Nevertheless, you are advised to buy more quality stocks (at a huge discount) that have low debts, healthy cash-flow within the active industry that is likely to be less impacted by the anticipated recession. For instance, investors can cut down spending on traveling, parties, and leisure but healthcare and consumer goods generally would remain immune as life depends on this, and such sectors tend to attract more patronages, optimism, and investment during recession periods. The blue chips in these sectors would be a good buy for you.

Please be wary of Penny Stocks, they are not always good buys during turbulent periods as they largely treated as speculative stocks with low and weak investors’ loyalties. Penny stocks suffer a lot during the recession.
I managed to sneak a little time at work and during my lunch hour and I think I got it working. My file structure is an absolute shambles with "this" crammed here and "that" crammed there, but it works.
One thing I want to ask, for the teensyduino, what packages do you need to install? I installed all of them, but just to make sure. Thanks for the tutorial.

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