Hello Grasshoppa,
As I am writing this, I’ve just heard the announcement from our PM on the latest MCO extension which is scheduled until 9th June 2020. There are over 6.64 million people that have started their work & he expects more industries to be able to start their work soon. With the limitation of the MCO, we will definitely see the effects even after the MCO is over. The good news is, many countries seem to be recovering steadily from this pandemic.
With the pandemic & MCO that has kicked off since 18th March 2020, many people have lost their job & some may have limited income during this period. A situation like this is tough but with the help from the government, some may be able to sustain during this period. As the saying goes, “tough times don’t last but tough people do” which I believe all of you are fighting this through.
What Are The Financial Lessons That We Can Learn From This Situation?
Cash Is King
I couldn’t agree more on this because this situation requires cash. If we were to take a step back to replan all this, don’t you think we need at least 6 months worth of emergency savings? Never in my life have I imagined that we will go through this pandemic & it is taking a toll on everyone physically, mentally & financially. Those who have cash or job in a situation like this are definitely are able to survive better which is the sad truth. Hopefully, when everything is back to normal, we are able to plan ahead & have more cash just in case situation like this happens again.
Diversification Of Your Investments
As you can see, many investors are pulling off & selling their investments. Even Warren Buffett sold his stakes at the big 4 airlines in the USA. That shows that the market is changing & we are all experiencing a downtrend in the market. Does that mean that all the markets are affected? As a whole, yes it is, but if we are looking at certain sectors, some are doing quite well. Medical-related industry for one is doing well. Commodities like gold is performing as well. If we were to diversify in those sectors & commodities prior to this pandemic, we are able to minimise our losses.
Spend On What We Need Not What We Want
In times like these, the latest fashion and branded item don’t matter. We can own the most expensive or limited edition item but I don’t think we can even show it to the public at this point. Even the malls are quite empty during the weekend & people are just there to get what they need & leave immediately. What we really need is basically our essentials like food.
Never Rely On A Single Source Of Income
Similar to investment diversification, we should never rely on a single source of income. We may be busy with our daily job & family but earning extra income really helps in a situation like this. Imagine if someone lost their job during this situation but they have additional side business that they are working on, that would allow them to have extra savings & extra income. There are so many ways to earn extra income & you just have to do some studies & pursue it.
When One Door Closes & Another One Opens
In every bad situation, there’s always an opportunity only if we look for it. You may lose your job but that may lead you to find other opportunities such as business or a better job. Never give up in any situation. There’s always opportunity as long as you are willing to pursue it.
Conclusion :
I hope everything is well on your end. In whatever situation that we are facing right now, we can definitely go through this together. Each of us may have different stressful situation but there’s always light at the end of the tunnel. Most importantly, never give up. It may take awhile for everything to be back to the way it was but let’s make each of these days count. Take up a new skill or start a new online store. Anything is possible as long as we are willing to do it. Listen to some wise words by John Cena & hopefully it may able to motivate you to never give up in any situation.
OSS!
