According to reports from the World Bank, the Philippine nation was expected to have a 5.8% increase in economy, but the outbreak of the pandemic annulled this.
These measures are taken to curb the pandemic involving shutting down of businesses and organizations; this puts all exports to International countries on hold.
Beforehand the country’s economy has been in critical condition. You need to plan and examine the financial gaps in the Philippines. It will be best to make use of this situation to prepare for any incoming wave of a pandemic in the future time.
What is the Financial Gap Analysis?
A financial gap analysis is a tool used by managers in a business to determine the level of difference between the desired financial performance of the business and the actual financial performance. This is a very valuable tool not just to determine the gap in financial performance, but also to overcome these gaps.
This applies also to Individuals when managing finances, you need to know the gap between where you want to be and where you are currently. A lot of lessons have been learned from the outbreak of Covid-19, but the most important of them all being that you need to prepare for the future.
Financial Gaps in the Philippines
By now, everyone in the Philippines is starting to adopt the Post effect of covid-19 on everyday life. It will only be best for us to look back and see what financial gaps we need to improve on to survive after this Pandemic. In this section, we will look at the strategies to improve those gaps.
Here are some financial gaps that need improvement to ensure you are not caught unawares if there should be a second wave.
A lot of Filipinos know about the term investments. But before the pandemic, no one was interested in knowing what it entails. Investments are very essential if you must have major progress in your finances.
Regardless of age, every Individual needs an investment portfolio. This enables you to live a comfortable lifestyle of your choice. You can choose to invest in Real Estate, Money Market funds, Equity UITFs, Stock, Forex, and Cryptocurrencies. You are advised to make proper research of various Investment portfolios before opening one; this helps you to plan well; because proper preparation prevents poor performance.
2. Passive Income
A passive income sounds confusing to most individuals; You earn it with less stress than your salary. The Pandemic has taught us that you must never put all your eggs in one basket. Single-income individuals and households must have had to reflect on this proverb after the break out of the pandemic because it became clear that employment in 2020 is no longer a guarantee.
Whether employed or not, passive income is the best way to prepare for unprecedented future occurrences. This guarantees you a constant in-flow of cash regardless of the situation. Some of the passive income services could include Affiliate marketing, Freelancing services, Web hosting, Coding, etc.
Even before the pandemic, Filipinos aren’t known to be the best of savers. The 2019 Manulife Investor Sentiment Index (MISI) showed that Filipinos save only 3.6 months’ worth of income for retirement. After all, nobody knows tomorrow, so why not enjoy your Golden years. But they all got a call to revival after the break out of the Pandemic. Many are now setting aside money for retirement plans.
Having no retirement plan is a financial gap that must be improved with immediate effect because no one knows what the future holds. Starting a retirement savings plan can be daring, but you are advised to start as little as possible: “Slow and steady wins the race after all” This keeps you financially disciplined and well prepared in case of a second wave.
4. Acquiring New Skills
Learning a new skill cannot be overemphasized. Education may seem to shove off the whole idea of skill, but nothing replaces having skills. Many lost their job due to the pandemic and various industries; firms were rendered useless as their services were inhibited by various safety measures against Covid-19.
For this reason, it is advised to learn a skill, that will help to provide a source of income for you, should you be laid off by your employer. You never know when a skill will be in high demand. Examples of skills that can be learned include Catering, Graphics Designing, Programming, Website Designing, etc.
Health is Wealth, is a popular phrase, but people tend to no longer understand the in-depth meaning of this phrase. People tend to feel making money is way more important than taking off your health, but this is a wrong analogy. After a series of pandemics and the most recent Covid-19, you must have realized that your money means nothing when you are dead.
Your ability to earn money is directly connected to your health. So basically, if you don’t take care of your health, you won’t be able to make money. Invest in your health physically, emotionally, and mentally.
6. Emergency Financial Aid
In case of emergency financial situations where you are out of options, getting an online loan could help, there are many lending companies. One of which is Robocash, which is always available to help, by granting you access to funds to settle your emergency needs and also funds to start your side business.
Robocash lending company gives you a variety of affordable short-term loans in the Philippines at Zero or very low interest rates. The loan amount varies from 1000 to 25000 pesos, and the loan term – from 7 to 30 days.