How to successfully navigate the dynamic world of freelancing

With the shilling taking a beating against major currencies like the dollar and lowering purchasing power, the effects of inflation, coupled with policies like rising taxes on fuel, are being felt by all. The weakening shilling has contributed to the high cost of living and made goods more expensive. This has forced some firms to either downsize or shut down completely. As this daunting situation persists, is there a way one can make money and thrive financially? Here are a few tips.

Long term investment
One observable fact, at least for now in Kenya, is that the value of land or property keeps on appreciating. If you buy a piece of land for a song in a less developed area right now, and then hold onto it while developing it slowly as you wait for infrastructure developments to come, your piece could double or even triple in value. You can also consider buying rundown properties at low values, renovating them and then quickly selling them or holding on to them through leasing until such a time the market stabilises and the value goes up.

Diversify your income
There is truth in that saying about putting all your eggs in the same basket. It is similar to betting on a single horse to win a race when it is paired with other better and more agile horses. The same holds true when it comes to investment. Diversify your investment portfolio instead of focusing on a single one. What will happen if that single investment asset happens to be the one that will go down in the face of inflation? Observe how some industries shine while others shut down during inflation. It doesn’t come as a surprise to see some looking for bailouts to sustain their operations in order to stay in business, as others navigate the turbulence and emerge stronger.

Invest in different projects so that when one of them succumbs to the challenges bought by inflation, the others can be a cushion to fall back on. Think of stocks, bonds, real estate, tech industry, health sector, precious metals and so on.

Utility sector
We all know we can’t do away with essential services like electricity, water and gas. Did you know the utility sector is one that is able to keep customers coming no matter what? This sector enjoys the monopoly of pricing power and the consumers have no choice but to adjust accordingly because they cannot do without utility bills. Why not invest in this industry? 

Dividends investment
This is a less volatile sector to invest in where you are assured of a regular income no matter the prevailing economic situation, provided you are a bonafide shareholder. You can get income in two ways – through dividend payments, and capital appreciation. But note that this sector is not immune to market forces, as share prices can go up and down. Just like investing in the utility sector, what you get depends on the number of shares you have. What do you do with your money after paying recurrent bills? It pays to make that money grow, instead of saving or spending it. Why not diversify by buying shares in different companies to increase your financial portfolio? Depending on how the company you’ve invested dividends in is performing, you may choose to buy more shares to increase your income bracket.

Bonds
This is a less risky investment venture than the stock market which is subject to market dynamics. But, be aware that bond prices can rise and fall as well. If you’re lending to the government, you’re assured you’ll get your money back as governments do not default. Before knowing what term to go for (short, medium, and long term), it pays to check the financial health of the institution you’re lending money to and weigh what you’ll get in return when the bond matures.

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