This archive report was first published on 16 November 2019.
As the saying goes, 'Don't put all your eggs in one basket.' This age-old adage reminds us that it's always a good idea to have multiple options, so if one fails, we have something to fall back on.
However, some people argue that with hard work and perseverance, you can make a success out of anything. While that may be true, it's always better to be prepared for the unexpected.
With the current economic environment being as shaky as it is, it's more important than ever to have a Plan B in place. And if you're currently happy in your job, it's still essential to be ready to move on at a moment's notice.
According to research, millennials are less likely to stay with the same employer for more than three years, making it easier for them to adapt to new situations.
So, what does a Plan B look like? For starters, it's essential to have a financial safety net in place. Investment adviser Rina Hicks recommends saving enough to cover your expenses for at least six months.
Maureen Wamahiu, Head of Data Operations at Credit Reference Bureau, TransUnion Kenya, suggests starting to save and spend less than you earn. This will give you a cushion in case the worst happens and you need to fall back on your savings.
When it comes to investing, spreading your risk is crucial. As Hicks puts it, 'Don't just put all your savings in one investment because it promises a great return. All investments come with an element of risk, and it's essential to analyze that risk before investing your money.'
Some safe and secure options for investing include Treasury Bills, Fixed Deposit accounts, and money market funds from reputable institutions.
Having a Plan B also means being open to new experiences and opportunities. This could mean taking on a side hustle, learning new skills, or even relocating to a new area.
As W. Brett Wilson, author of Redefining Success, puts it, 'Don't fear the unknown; embrace the opportunity.'
By having a Plan B in place, you'll be better equipped to handle whatever life throws your way. So, take the time to think about what your Plan B looks like and start working towards it today.
