In this post we’ll be going over how to prepare yourself financially in times of a crisis.
2020 has been crazy. Who would have expected a crisis like the Coronavirus to happen? And who would have thought that everyone would not be allowed to leave their homes?!
It’s been a sad time. My co-worker’s father passed away due to this pandemic, and I know several others who have gotten sick from COVID19. It’s not just older people who are getting sick, either; I’ve heard cases of healthy, young people getting hospitalized as well. It really is a scary time.
I feel extremely sad for those who have been heavily impacted physically, mentally, emotionally, and financially.
The world is in a financial crisis right now: people are getting laid off, businesses are not doing as well, creatives can’t do their jobs anymore, etc. A lot of people need to do their jobs in-person, but because of this pandemic they are losing that ability.
I always encourage people to have multiple income streams to make sure they’re financially safe. You never know what’s going to happen, so it’s important to diversify your income streams. This pandemic is really proof that we need to start thinking about expanding our opportunities.
In this post, I want to talk about things we can do to prepare ourselves financially.
How to Prepare Yourself Financially In Times of A Crisis!
1. Pay Off Debt
If you currently have bad debt (non investment types of debt), make sure to prioritize paying them off as high interest rates can make it difficult to become financially stable.
2. Diversify Your Investments
Currently, the market is dropping rapidly. This is why I believe that when it comes to stocks and real estate investing, you shouldn’t put all your eggs in one basket as you never know if things are going to tank. In my eyes, it’s good to invest what you are okay with losing. I’m very risk-averse, so I never encourage people to put all their money into one place.
However, I do believe that once everything is lifted, the market’s going to rise exponentially and people will buy homes and stocks left and right. So when it’s getting to that inflection point where hope is being restored (fingers crossed), I definitely feel like I’ll be investing more. Like Warren Buffet said, “Be fearful when others are greedy, and be greedy only when others are fearful.”
3. Reduce Expenses
If you haven’t been good about saving money, you should definitely start now. This means no online shopping, unless for necessary purposes like buying groceries.
In disasters like these, when your jobs are at risk it’s important to have a solid nest-egg to keep you afloat. So in the future if you’re able to cut your rent costs or mortgage costs by house hacking, it may be wise to do so.
It’s also a good idea to start learning how to cook if you haven’t already done so. By cooking instead of eating out, you’re going to save a lot of money. Every little bit counts!
4. Look into Passive Income Businesses
Now is a good time to look into passive income businesses, though many businesses are getting hit financially as well. My passive income businesses are not performing as strongly as in the past, but it’s still nice to have a bit of income coming in from different channels.
If you want to get started, please make sure to check out my passive income toolkit where I provide information for free on how to get started. Also, check out my free blogging course and free Etsy course to get started with those channels as well.
5. Sell Old Stuff
When it comes to selling old stuff, now might not be the best time to be selling stuff in-person. However, sites like eBay, Mercari, and Poshmark allow you to sell remotely and mail your packages to people. Of course, to prevent the spread of the virus, you should definitely sanitize and wait two weeks in quarantine (to check for symptoms) before sending things out.
It’s a good idea to start getting rid of old stuff, because the more you become accustomed to minimalist ways of living, the less you are prone to buy, and the happier you are prone to be!
6. Learn Tech Skills for Remote Jobs
Now that things like this are happening, it’s more important than ever to learn tech skills in order to survive when you can’t leave the house! That’s why I like the digital nomad lifestyle, in which you can be anywhere as long as you can work through the comforts of your own laptop.
As you learn remote skills like coding, digital marketing, copywriting, working as a virtual assistant, and more, you’ll be able to feel much safer knowing that your earning ability allows you to be anywhere and everywhere.
Conclusion
I hope you guys enjoyed this post on how to prepare yourself financially in times of a crisis. I can’t stress enough how important it is to keep yourself and your family safe with finances. It’s the worst feeling to be stuck in a position where you can’t make ends meet, and people are depending on you.
Let’s start positioning ourselves to be financially free and aim for a future without worries, so we can live the dream life that we deserve to live!
