Hedging means strategically using financial instruments or market strategies to offset the risk of any adverse price movements. In this article, I’ll share with you four things you can do to hedge a few steps ahead during the pandemic.
Emergency Goal: The first thing to do on how to hedge a few steps ahead during the pandemic is to create an emergency savings goal so you don’t get caught unawares in an urgent situation. You should always have something to fall back on.
Multiple Streams of Income: Having multiple streams of income is great. You never have to run out of money. If the pandemic badly affects one of the streams, you have others to support you. That’s why it is even a better idea to have unrelated streams so they all don’t get affected by the same thing at once. This the very important action point to consider on how to hedge a few steps ahead during the pandemic.
Dollar Investments: Another key on how to hedge a few steps ahead during the pandemic is Dollar investment or investment in another alpha currency helps preserve the value of your money against Naira’s constant devaluation. We all know the history of Naira and how it has devalued over time, so it is wise to preserve your money. Even if you’re not in Nigeria, you have invest in a currency stronger than your local currency.
Upskill and Learn New Skills: My last point on how to hedge a few steps ahead during the pandemic is to upskill or learn useful new skills that can help you improve on your job or as a person. The act of continuous improvement and development is never a bad investment. This opens you up to a salary raise, new and better job or business opportunities and lots more.