The markets worldwide are in turmoil and economic forecasts predict an unprecedented global recession. Fear about the impending financial crisis are intensified due to your exposure to the 2008 recession. The daily anxiety feels very real, amplified by the international news about COVID-19 pandemic. How can you ensure you will make it through the uncertainty?
The opinion shapers of the world considered the COVID-19 threat for many months. 2020 started with the idea (perceived promise and ‘prophecies’) that this will be the year of a great prosperous economic turnaround for the country. No one have thought that the country would be shut down and everyone would be afraid to go to the grocery store, pharmacy, doctor or hospital.
After advising clients for nearly 35 years, I thought I had seen it all. The 1988, 2008 and 2018 crises, but then COVID-19 trumped it all.
Now is not the time to bury your head in the sand. Unprecedented times like this one, call for immediate action. We have no idea how long, or how deep this crisis is going to last. Some parts of the country will start to move to a stage 4. Positive progress can only happen if the majority of people (two thirds) still have to stay home, and we adhere to curfews.
Firstly, to be able to be successful you have to survive this ordeal. You cannot be well and succeed if you are worried all the time. Secondly, the only way to be successful is to be proactive!
- Look for the light even when others just see doom, gloom and darkness.
- Nobody knows how ugly the situation is going to be, so prepare for the worst.
- Do not bury your head in the sand; do not make hasty emotional decisions. Stay rational!
- Your whole household must work together to decide on actions you need to take to protect you and your family. Do not try to do this alone.
- You are not alone; there are millions of individual economic crises. Reality is that people may start to lose their homes, cars, investments, possessions and still sit with a lot of debt.
- Many struggle to pay their rent, electricity and put food on the table, as well as their debt payments.
- Make the wisest financial choices possible. There are no guarantees, but doing nothing will not change anything.
It is time for tough decisions and people and companies will come through this better and stronger.
The question remains, have you done everything you possibly could to make sure you, your business and your family make it through this COVID-19 economic crisis as safely as possible? That is a great start.
I want to highlight a number of recommendations and ideas for you, but remember these are suggestions. Each person, family, business or community’s situation is different and it is important to get sound advice.
Consult a trusted, properly registered financial adviser; do not take self-made WhatsApp, Facebook and social media gurus’ recommendations.
What should I do? Go to Step 1