As we’re in an unprecedented time, we’ll need to do some things that may feel counter-intuitive in order to remain stable with money.
Note that I did NOT say “win with money” as I often do - this isn’t about winning, stability is going to be the biggest win on the other side of this pandemic.
PAUSE your Baby Step. Whatever Baby Step you’re on, temporarily stop doing it to favour stockpiling CASH. Do not borrow, do not lend, do not co-sign on anything. For any reason. Focus only on spending as LITTLE of your income as possible.
DO NOT get fancy with these savings! You want this money liquid and easy to get to in the event that an emergency comes up. You will have this money, unspent, if no emergency comes up on the other side of COVID19 to put towards your current Baby Step.
DO be flexible! Things may take a long time to stabilize after this virus is cured.
Your time may have been worth $20 an hour before the virus and could be worth $14 an hour after. You may be underwater on your house after this pandemic. There are going to be rich rewards for financially conservative folks after this pandemic. Your job may change and you may end up unemployed during this time. Don’t panic; re-tool. Learn something new.
PREDICTION: WORK - for a few years after Coronavirus, I believe that people may have to move/travel to where work is. I see a re-emergence of people moving around from place to place like they did during the Great Depression.
REAL ESTATE: because of my prediction that folks may need to be nomadic for work, I see less value being put on home ownership. If you’ve been in a situation where you’re debating what to do next with your living situation, be conservative. The only folks who are going to be able to win in this panicked culture are those who can use CASH to do things.
This is the most risky time I can think of in my memory to borrow money. Don’t do it!
Stay home, don’t take risks, and be open to coming out on the other side of this with changes. The flexible, the people who are willing to play by a new set of rules are going to win huge when the dust settles.
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