“In times of great stress or adversity, it’s always best to keep busy, to plow your anger and your energy into something positive.”
– Lee Iacocca
The coronavirus crisis drastically changed our routine. We didn’t expect such an impact on the financial sphere, lifestyle, and politics.
It is a unique case when experts cannot give straight forecasts. Unlike previous issues in the world’s economy, the pandemic is an unpredictable power.
Regardless, there is no use panicking. To protect your financial state, you should mobilize and track the situation. Aware of the issue, you can quickly adapt to it.
Why Do You Need to Act?
As an economic leader, the US quickly felt the coming crisis. Job loss and bankruptcy referred to all classes of the population. The level of personal income had been lowering during the quarantine and fell by 4,2% in May.
Price rise stirred the pot. Charges drastically grew at this time. Americans started to spend much more, considering most of them were quarantined. For such a lifestyle, the outgoings were massive.
With high prices and low-wage jobs, most people use emergency funds or take loans. Anyway, it is only a temporary solution. Now it is high time to rethink your position and choose the strategy.
7 Strategies to Handle the Financial Crisis
#1 End of Procrastination
The harder the issue we face, the less our motivation is. Even feeling the catastrophe, we spend days ignoring it. Some people prefer to act when the situation becomes critical. Not the best decision.
Take measured before it is too late. Count your budget and future charges to understand where to move. Do you need a new job or is it enough to cut off? Are loans and deposits useful? Start realizing your ideas immediately, not the next Monday.
#2 Necessary Minimalism
Conscious consumption is trendy for a good reason. 2020 is time to rethink your habits and establish the priorities. Start with small things you do automatically:
- Treats from cafés and ready-made food
- New collections
- Fashionable products
- Festive home decorations
- Paper books.
The list is eternal. In truth, such stuff cannot make us truly happy. Most probable, you buy automatically. Estimate how much you spend on these little pleasures. Decide whether it is reasonable to cause such damage to your budget.
#3 Rethink Your Present Job
We rarely think of our productivity in the workplace. This way you waste time and potential.
John Hollows, the CSOB CEO, noticed it from personal experience:
“Everyone has noticed that Skype meetings take less time than regular meetings. Board meetings which would normally have taken eight to nine hours we can suddenly do in two to three hours. That has been quite an interesting statement on the inefficiency perhaps of meetings in the past.”
We go with the flow, while someone else makes money using skills. Think of how can you earn more. There is no necessity in a career switch. First, try side jobs. Define your strengths and how they can be actual for the market.
#4 Master New Skills
Soft skills are handful in daily life. We got used to services, while most of them are easy to master. It takes little time to cook the dinner or do the gardening, but the expected savings worth it.
Try to sew, repair appliances, or wash the car. There is no shame in being an independent and skilled person.
#5 Review Your Property
We seek money to cover the charges, while some of them may be excessive. Instead of buying more, see what you have. Usually, we collect more clothes in our wardrobes than one can wear. We throw away food that may be used for new dishes. Probably, you have some cutlery, interior decorations, and appliances in your storeroom. Surely, it won’t help for a long period, but turning to such resources may lower the pressure on your budget.
Moreover, there are regular garage sales, where you can sell additional stuff.
#6 Invest Money
Strange advice in times of global crisis, but let’s make things clear.
Not all the spheres are suffering from the situation. The modern economy is balanced. Use your logical thinking to define what deals can be profitable nowadays.
Did you know? While many companies collapsed during the COVID pandemic, related sectors used the benefits. Clorox is the biggest producer of consumer products in the US. Manufacturing household chemicals, they chose the best strategy for the pandemic period. The demand for sanitizers soared since March, so Clorox quickly reacted and focused on the required product. Therefore, its stocks grew by 5,2%, while other companies suffered from the crisis.
Surely, you don’t need to choose world leaders and possess millions of dollars. Just think of what is demanded now and develop your awareness in business.
#7 Proper Mindset
All changes start in our heads. Only you can define the impact of the crisis on your life. Follow these steps:
- Accept the changes and the fact, that life won’t be the same.
- Change the attitude. Think of what positive sides does it have.
- Brainstorm to create the plan and understand what measures to take.
- Care of your mental health. Relax more, visit a psychologist, or talk to the closest people.
Calmness and determination are the best assistants in creating new life. Care of yourself and be confident in what you do.
2020 is a period for global changes in our minds and lives. Though, how to spend this time depends only on you. Instead of panic and depressions, see the ways to boost your income and reach the new standard of living.