TIPS: Keep RISING Despite the Global Financial CRISIS.

Reading through this is pretty WORTHWHILE!!!

FORECASTS:
For once, both optimists and pessimist agree on one thing:2009 would probably be one of the challenging times in living history for most people.
Even those who predict that Nigeria was too detached from the global economic crisis have all reversed their positions. Warren Buffet (arguably the greatest investor of our time) says: The secret to making money is to be cautious when everyone is greedy and be greedy when everyone is cautious. But a lot of questions are on our minds:
Have the Nigerian stock market reached its bottom? Should I average down by investing at these low prices? Is there a real estate bubble? Will naira depreciate further? What else can I invest in? Will I keep my Job in 2009? Will there be a banking crisis or consolidation? How best can I survive in 2009? This is our attempt to answer all these questions and more.
Many experts on the Nigerian economy agree on the following predictions:
Foreign exchange rate will depreciate further to between N145 to N155 per US$1 by the end of the year 2009; Nigeria’s foreign reserves may have halved by 2009 ending, from about US$52billion in December 2008($63bn in September 08);Prime lending rates would range between 20% and 25% depending on CBN’s willingness to print money and the mode of financing our N1trillion deficit budget; crude oil prices range between $25 to $55 per barrel depending on weather conditions and events in the Middle East; Real Estate Prices would adjust downwards between 10% to 50%(especially in Ikoyi, Lekki and Victoria Island);Nigeria’s cocoa exports would drop significantly.
There would be huge swings in share prices (Upwards and downward) with an average slow trend upwards; Unemployment would rise (especially amongst bankers);Consumer confidence would drop and crime rate would rise and the foreign exchange black market would re-emerge and trade at a Premium of between 5% to 10% above the official exchange rate.

Generally, all you need in 2009 are the 3 C’s: CASH, COURAGE and CALM।

CASH - To survive and take advantages of all the golden opportunities which will arise.

COURAGE - To aggressively implement all the highlighted recommendations/tips and

CALM - To remain steadfast।

Other tips include;
Determine and Monitor your Net Worth: Net worth is what is left after you add all your Assets and subtract all your Liabilities।
Assets include Shares which have been dematerialize into CSCS at current market prices; Real Estate with other title documents; Cash in bank, Gold and any assets with a high probability to appreciate and determine market values.
Please note that items like cars, cloths and furniture are deliberately excluded and are considered dead assest.Liabilities include: Loads, mortgages and anything guaranteed to cause consistent cash out flows in the future. Your aim in 2009 is to measure and increase your assets/net worth consistently on a monthly basis.
Form a Cash Backed Family Reserve: In 2009 we recommend you have a cash backed Family reserve in your savings or fixed deposit account. This can be calculated by estimating your savings or fixed deposit account. This can be calculated by estimating your total family expenditure for 6months assuming you and your spouse lost both Jobs today. If you do not have this reserve, sell what you can and cut all unnecessary expenditure until you can form this reserve.
This amount should be left unused until 2009 ending. Once you have your cash reserve you can stop saving and start investing. Every additional inflow after your cash reserve forms part of your investable funds.
Avoid debt: with astronomical interest you should be very careful before you use any debt in Nigeria.
Live below your means: If you cannot save/invest at least 10% of your income you are living above your means. To live below our means you should save/invest 20% of your monthly income, every other expenditure should be cut off or suspended.
Take a Health insurance and Life Insurance: This eliminates 2 major risks you and your]
Dependants may face.
Invest in Real estate using Investment club: With the proposed decline in real estate, small investments in different real estate ventures, with minimal debt would be preferable to large investments. This form of investment is usually available using an investment Club.

For 2009:
Invest in equities; invest with a 2 year perspective in selected high quality company equities with higher dividend yields and lower P/E ratios compared with their pairs। But gradually, buy what you understand and avoid stocks known to have manipulated prices. In addition you may invest in trusted Mutual Funds.

Investment in private Equity can be very profitable if done via experience managers. We recommend about 20% of your investible funds should be allocated to equities.
Invest in Fixed Income: Invest in commercial papers, Bonds, Guaranteed investments, Treasury bills, and foreign currency can be easily liquidated to take advantage of interesting opportunities. We recommend that about 60% of your investible funds should be in this form.
Like Buffet सीक ONLY “DEALS”: In 2009 a lot of once-in-lifetime deals would emerge however only those who are ready with cash would be able to take advantage quickly। Make it a point not to part with your cash unless it’s a deal of a life time… Don’t be in a hurry to invest। Always walk away if you are unsure। More deals would come subsequently। The opportunity cost of spending your cash is high.
Reconfirm the status of your pension (PFA) contribution: Those little monthly contributions could amount to a future.
Safeguard your assets and yourself: This includes enhancing your immediate security as crime rate is expected to increase. Also insure your House and any major asset.
Do a Will or a Trust: As morbid as it may sound, this would make a world of difference to your dependants, just in case the unfortunate happens.
Form the habits now and continue updating the Will as you increase your net- worth.
Set2 major Financial Goals: i.e. Education for you and your kids and Housing for the family. Invest towards them aggressively.
Remain Motivated and seek opportunity aggressively: This is the time to remain motivated and violently seek opportunity. No gentle man survives the war front.
Do a Budget and stick to it meticulously: To manage your expenditure you need to measure them continuously.
In conclusion aggressively preserve your cash। This would give you more options in 2009।most importantly, be OPTMISTIC not necessarily about the future which you cannot control, but about your ability to make the best out of whatever the future present at you amidst this uncertainty, most of the traditional assumption that determine the industry boundaries/rules would have silently changed. Now more than ever, a Game Changing Idea will work.