The last great recession was more than 10 years ago. From December 2007 to June 2009 we had the longest economic crash since World War II. Unemployment doubled, home prices decreased and the S&P 500 index took a 57% drop.
For the last years many experts were saying that a market crash was eminent and that we should prepare, what no one was expecting was the cause of year’s crash, the COVID-19 aka Corona Virus.
As we talked about on the latest post (The COVID-19 Recession) we are already in recession and the markets felt that.
So what are the things that you should have done and should probably start doing as soon as possible that will help you in these times of crisis?
1 – Do not waste time worrying
In times of crisis everyone is worried especially when there is something like a virus or a war going on, but the best thing you can do is to follow the recommendations of the responsible authorities and try to live your life as normal as possible. Think about how is your life going to be different in the next few weeks or month and adapt. A lot of people have to luck to be able to work from home and although that may be hard in the long run, it also gives you more time to yourself. You don’t have to travel to work and you can use this to your advantage. Focus on the good side and you will be much better.
2 – Get an idea
In times of crises, we have the chance to take a different look at the world and find what society is missing. One of the best ways to start a successful business is to find a common necessity, solve it and sell it.
3 – Take the chance
Ideas are great. Almost every single person has at least a 1 million dollar idea, so why is it that few people achieve this goal? Because most people won’t take the chance.
“It’s too risk” “I have a family to take care of.” “I have a good paying stable job”.
These are the types of things people say to justify not taking risks, and that’s alright, it means that person is not a risk-taker. But these people will also live an average life (again, that is also OK) but if you want more, you have to take risks and that is the truth.
“I’d rather have a life of ‘oh wells’ than ‘what ifs’.”
4 – Make a budget and stick to it
By the time I am righting this, almost the entire world is in the state of quarantine. We can only go out to do the most basic things like getting food, gas and help out others in need. This means that a lot of businesses are going to take a hit and a lot of people are going to be unemployed. So, it is important to have some extra cash just in case this happens to you or some one close to you. having enough to buy food and medicine for the next few month is your number one priority, so do a monthly or weekly budget and stick to it.
5 – Start a side hustle
If you’ve been wanting to get some extra cash buy your excuse was “I don’t have the time”, what’s your excuse now? With this quarantine we all have extra time at home so start doing something with it and check out Online Businesses to Start From Scratch.
THE LAST ONE ONLY FOR PEOPLE THAT HAVE EXTRA CASH AVAILABLE
6 – Invest Wisely
Investing during a market crash is the most high risk high reward strategy you can apply. A lot of businesses and companies are going bankrupt but those who get through this will experience a huge growth afterwards. If you are looking to invest, invest on a market that you believe to be strong enough to survive the crash. It could be stocks, cryptocurrencies or if you have more money to begin with, real estate.
Never invest what you cannot afford to lose.
I can’t stress this quote enough:
Be fearful when others are greedy and greedy when others are fearful.Warren Buffet
Now tell me, what are you doing to take advantage of the situation we are currently living in?
Let me know in the comments.
See you next time.