The financial impact of COVID-19 and its aftermath has been significant, causing setbacks for many individuals and business. Factors produced by the pandemic such as bear markets, increased costs of goods and services, widespread job losses and overall negative economic conditions have disrupted personal finances. While some setbacks can be attributed to negative financial habits, others are a result of unforeseen circumstances. Regardless of how it happened, recovering from a financial setback is possible with commitment, careful planning and perseverance. Here are some key steps to consider to bounce back financially:

Assess Your Situation

Assess the current situation. How have your finances been negatively impacted. Review your income, expenses, debts and assets. Knowing your current financial situation and where you fall short will help you identify areas that you should pay attention to. 

Reflect On The Setback

Remember to learn from your mistakes. There is a common saying that goes “experience is the best teacher” and a financial setback presents a learning opportunity. Reflect on the factors that contributed to the setback and take steps to avoid similar situations in the future. Additionally, improve your financial literacy by educating yourself on relevant personal finance topics while practicing good money management habits.

Establish a Budget

Budgeting is where the magic starts. You are basically telling your money where it should go. Now that you know your financial situation, it is important to allocate funds to areas where it is needed the most. Your budget should be a realistic plan you can commit to. Ensure you are spending within your means by evaluating your lifestyle and spending habits, prioritizing essential expenses and cutting back on non-essential items. Look for opportunities to reduce costs and find ways to increase your income, such as taking on a side job.

Determine Your Goals

Set Financial Goals. On every journey, it is important to know where you are heading to give you a sense of direction. Financial goals help keep you on track to achieve the financial recovery you desire. These goals could include paying off debts, building an emergency fund or catching up with your retirement savings. Break down your goals into actionable steps to track progress and stay motivated.

Tackle Your Debt

Difficult financial times may result in an accumulation of debt if great care is not taken. If you have accumulated significant debt, do not feel bad. Develop a strategy to tackle it. Prioritize high-interest debts as a way of making the most of your money and managing your debt effectively. Explore debt repayment options by seeking guidance from a reputable financial professional if necessary.

Build An Emergency Fund

It is widely recognized that having an emergency fund is crucial, particularly during challenging times. If you currently lack an emergency fund or have depleted the existing one, it is important to prioritize building it back up. Focus on establishing an emergency fund that will serve as a safety net against future financial setbacks. Aim to save an amount equivalent to three to six months' worth of your living expenses in a dedicated account. Consider setting up a direct debit or standing order to facilitate consistent and automatic savings contributions.

Seek Professional Advice

It may be difficult to get ahead on your own, seek professional assistance. Some financial setbacks can be quite overwhelming and difficult to handle. A professional may help you assess your current financial situation, provide tailored advice, help you create a personalized recovery plan and stay on track.

Sometimes, unexpected events or personal mistakes can result in unfavorable financial circumstances. However, it is important to understand and firmly believe that recovery is possible. The duration of the recovery process may vary from person to person, as we all have unique financial situations. Patience and determination are crucial throughout this journey. Additionally, by making wise financial decisions, you can overcome significant setbacks and establish a more resilient financial future.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.

Kweku (not his real name) is a middle-income earner who works as a teacher in one of the basic schools in Ghana. He usually goes out on Friday nights with a few friends at a regular spot, where they discuss life events over a few bottles of drinks. This outing is referred as “Sitting” by Kweku and his friends. At one of these sittings, the topic of investment was raised. One of Kweku’s friends, Kwame who usually sponsored the Friday nights’ siting explained that he knows an investment opportunity that yields high returns with very little risk. Kwame added that this investment yielded a return of 10% per month on every amount invested. According to Kwame, he Invested GHS 50, 000.00 in the investment opportunity and has been getting GHS 5,000.00 as interest every month. He further added that this investment has become his main source of income and needed not to work anymore. Kweku was intrigued, he had never heard of an investment opportunity that promised such high returns with such little risk.

Kweku later went for a loan of GHS 20,000.00 from a bank and invested the sum in the newfound investment scheme, and for the first few months, he received his promised returns. He was excited to see his money growing so quickly, and he started telling his friends and family about the investment opportunity.

But soon, things started to unravel. The promised returns stopped coming in. Kweku started to panic, and he tried to get his money back. But it was too late. The investment scheme had collapsed, and Kweku had lost all of his money.

Kweku was devastated, he had been lured into the Ponzi scheme by the promise of easy money, and now he had nothing to show for it. His relationship with his friend Kwame deteriorated after his ordeal. He learned a valuable lesson about the dangers of get-rich-quick schemes. In the end, Kweku was able to rebuild his finances through hard work and smart investments. But he never forgot the lesson he learned about the dangers of Ponzi schemes, and he made sure to warn others about the risks of falling for such schemes.

A Ponzi scheme is a fraudulent investment scheme in which returns are paid to earlier investors using the capital contributed by newer investors rather than legitimate investment returns. These schemes rely on the constant recruitment of new investors to generate funds for the promised returns to existing investors. Eventually, the scheme collapses when it becomes impossible to recruit enough new investors to pay off the earlier investors, resulting in significant financial losses for everyone involved. Unfortunately, Ponzi schemes are a global problem, and Ghana is not immune to them. There have been several Ponzi schemes in Ghana in recent years that have defrauded people of their hard-earned money.

Here are some red flags associated with Ponzi schemes:

I. High returns with little to no risk: One of the key features of a Ponzi scheme is the promise of high returns with little to no risk. This is an unrealistic promise and should be a warning sign. The return from such investment sound too good to be true.

II. Overly consistent returns: Ponzi schemes often provide consistent returns, no matter what market conditions are like. This is because the returns are not actually generated by legitimate investment activities, but rather are paid out of the funds contributed by new investors.

III. Unregistered investments: Ponzi schemes are often unregistered with regulatory authorities, which means they operate outside the bounds of legal investment vehicles. If an investment opportunity is not registered, it may be a sign of a Ponzi scheme.

IV. Lack of transparency: Ponzi schemes often lack transparency in terms of the investment strategy and how the returns are generated. If the investment opportunity is unclear or the operator is reluctant to provide detailed information, this could be a red flag.

V. Pressure to invest quickly: Ponzi scheme operators often pressure investors to invest quickly to take advantage of a limited-time opportunity. This is done to prevent investors from conducting due diligence and discovering that the investment opportunity is a scam.

VI. Complicated or secretive strategies: Ponzi schemes often use complicated or secretive strategies to explain how returns are generated. These strategies are often impossible for investors to understand or verify.

It is important to note that the presence of one or more of these red flags does not necessarily mean that an investment opportunity is a Ponzi scheme. However, if several of these red flags are present, it is important to exercise caution and conduct thorough due diligence before investing any money.

Here are some tips for avoiding being lured into a Ponzi scheme:

A. Do your research: Before investing in any opportunity, be sure to do your research. Look up information about the investment, the company, and the individuals running it. Check if the investment is registered with regulatory authorities.

B. Be skeptical of high returns with little risk: Be wary of any investment that promises high returns with little to no risk. Remember that there is no such thing as a free lunch. Investments that offer high returns generally come with higher risk.

C. Verify the investment strategy: Ask for detailed information about the investment strategy and how the returns are generated. If the explanation is vague or overly complex, this could be a red flag. Verify the information with an independent third party.

D. Avoid investments with pressure to invest quickly: Be cautious of any investment opportunity that pressures you to invest quickly, especially if the pressure is accompanied by promises of high returns. Take your time to evaluate the investment opportunity and do your own research.

E. Be careful with unregulated investments: Be cautious of unregistered investments. Regulatory authorities require investment opportunities to register and provide detailed information to the public. Unregistered investments may be operating outside the law.

F. Be wary of complex investment structures: Be wary of investment structures that are overly complicated or difficult to understand. Ponzi schemes often use complex investment structures to confuse investors and make it difficult to uncover the fraud.

G. Get independent advice: Seek advice from a qualified financial advisor or investment professional before investing. An independent professional can help you evaluate the investment opportunity and uncover any red flags.

By following these tips, you can help protect yourself from Ponzi schemes and other investment frauds. Remember that if an investment opportunity sounds too good to be true, it probably is. Be cautious and take your time to evaluate the investment opportunity carefully.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.

Investing long-term is tough and maintaining that resolve in the midst of difficult economic times is much tougher. With pressing current financial needs, it is easy to relegate long-term goals like retirement planning to the bottom of our financial agenda. Regardless of how challenging it is, if we stay alive, retirement is inevitable. Having a long-term perspective is essential when it is comes to investing towards long-term goals like retirement. Planning for your retirement requires long term thinking, the ability to prioritize the future and stay committed to achieving the comfortable retirement you desire. The question is how do we develop a long-term mindset?

Cultivating a long-term mindset requires discipline. One of the main reasons for financial problems is the lack of discipline. The inability to delay gratification in the short-term may cost you your long-term goals such us retiring comfortably. Also reacting adversely and aborting your plans midway due to challenges can also stand in the way of achieving your goals.

In the face of uncertainties, investors need to be resilient. This is the ability to recover from your own mistakes and difficulties beyond your control. One of the basic concepts of investment is risk and return. Risk is the probability that actual returns will differ from what is expected. Every investment carries some level of risk. To cultivate a long-term mindset and achieve retirement goals, an investor must anticipate and prepare adequately for tough times and be ready to take advantage of opportunities that may arise.

To develop a long-term mindset, you need to have a compelling reason for investing i.e. why are you investing towards your retirement? Investing just for investing sake is not enough. Being disciplined and resilient becomes easy when you have purpose for investing. Set financial goals that are important to you instead of following the crowd so that you are inspired and motivated to still pursue them even when times get tough.

Developing a long-term mindset requires patience, the ability to not be worried or distracted by short-term volatility in the value of the investment and stay invested for long-term regardless of difficulty. It is important to stay focused on the bigger picture.

Having a purpose, being disciplined, resilient and patient are essential requirements for investing in uncertain times. Taking a long-term perspective may help you avoid emotional choices, avoid unnecessary losses and grow wealth over time with small sums invested regularly. History has shown that having long-term mindset increases your chances of yielding positive returns.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555

The New Year brings an opportunity to reflect on the past year and to set new goals for the year ahead. Were you able to achieve your goals for the previous year? Looking at your current circumstance, do you think there are aspects of your life that need improvement? Answering these questions will give you a clear picture of where to focus and how you need to approach the New Year. If you are considering setting physical and mental wellness resolutions, consider adding financial wellness resolutions as well. On the other hand, if you never had a clear plan for the year, this is the time to plan because a sailor without a compass will always get lost.

Planning for the New Year can be a very tedious exercise and you might lose interest and leave your life to chance especially where the previous year did not gone as planned. You need to approach the New Year with high optimism and with the hope of getting the best out of it. A brand-new year is a great opportunity to build a new habit as well as improve upon old ones. You may want to buy a car or move into your own house. Regardless of your goals for the year, you will need a very well thought through plan and strategy to sail through.

One area you cannot ignore for the coming year is having a good financial plan. A good financial plan will ensure that you have financial security and peace of mind. This will mean you will have enough funds to cover your lifestyle, emergencies and future financial goals. Here are a few strategies to help you thrive financially in 2022.

I. Set Financial Goals

The first step you need to take is to set financial goals. In setting a financial goal, you need to assess yourself to know where you are.  To set a concrete financial goal, you will need to answer honestly the 3 questions below;

1. Where am I now (current financial situation);
2. Where do I want to be (financial goal); and
3. How do I get there (action steps).

 II. Live within Your Means

“Living within your means” is simply having your expenditure for each month be less than or at least equal to your income for the month. Remember, you are not in competition with anyone, and you do not need to impress anyone. The best way to live within your means is to set a budget. It is important to note that having a budget alone is not enough. To ensure you succeed, you stick to the budget you set.

III. Pay off your Debt

To achieve your financial goals, you will need to be very discipline about managing your debt, if any. Try to pay off your debt by first getting rid of smaller debts. This will motivate you to pay off larger ones. Avoid taking on new debt if it is not necessary.

 IV. Save and Invest

Once you know your income and you have reviewed your spending habits, it should be clear and easier for you to know how much to set aside every month to meet your future needs. The best strategy you can adopt for the New Year is to pay yourself first any time you earn income.

There are various rule of thumbs you can adopt to help you save and invest but the 10 – 90 strategy is recommended. That is, save and invest 10% of your monthly income and spend the remaining 90% on your needs and wants. Try as much as possible to automate your savings and investment by simply setting a standing order on your bank account or mobile money account.

 V. Plan for a Comfortable Retirement

Retirement is a period you cease to be actively employed. In retirement your savings throughout your working life should be able to cater for you. You need to be able to estimate the amount of money you will need during retirement. Apart from the mandatory schemes, you can enhance your retirement benefits by opting for a voluntary personal pension plan. In 2022, take the necessary steps to save towards a comfortable retirement. This will improve your overall financial wellness.

 VI. Stay Organized

Setting goals and having a financial plan is good but your efforts will be in vain if you are unable to stay on track. You will need time, consistency and discipline to achieve your goals. Try as much as possible to evaluate your financial plan at least every quarter to ensure you stay on track.

 Our financial planners are available to assist you to design and implement a good financial plan. Connect with an Axis Pension Advisor to discuss your financial goals for 2022 and more.

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Axis Pension Trust partners workers throughout their retirement planning journey to ensure they are on track to achieve a dignified retirement. For more information on our services or general enquiries, send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. or call 030 273 8555.