These are complelely unprecendented times we are living through. There are currently around 17 million people who have filed unemployment and more are joining every day. Non essential businessed are being foreced shut as people stay home and the future far from certain.
Lots of people are asking themselves questions like these:
- What will I do if this shutdown continues?
- What government assistance is there?
- Should I sell my investments?
- Is this a good time to start investing?
We wanted to put this guide together to answer at least some of these questions. These are 5 measures you can take to protect yourself during the coronavirus outbreak.
This is definitely the best place to start when it comes to prepping for the long-term impacts of the coronavirus. The government has already sent out one assistance check and is working on a second.
Stay up-to-date here:
The silver lining is that lots of people are in the same boat as you. This means that lots of people are asking the same questions and will have similar needs. Follow those links to stay as up to date as possible on the situation.
Create an emergency fund
Having an emergency fund is a good practice to implement regardless of the current economic climate. However, a situation like we are seeing now can make an emergency fund all the more important. We realize that it can be difficult to set money aside (especially if you’re tackling debt or making a large purchase) but it’s worth it to have peace of mind.
Additionally, we are not quite sure yet how long this situation will last. If you’re concerned, it’s better to start stretching your cash now in case it needs to last longer than anticipated.
Having a little extra money in the bank when things go south can help prevent a bad situation from turning into a terrible one.
Create another income stream
Creating another income stream can be another lifesaver during times of financial uncertainty. This is especially true when the problem is an “economic” problem and not a “you” problem. For example, say the country slips into a depression and many industries lose business and need to make layoffs. You lose your job but it isn’t because you were doing a bad job! The coronavirus is definitely presenting an economic problem. This is when it’s crucial to have another stream of income.
Here are a few relatively quick/easy avenues to explore:
- Create a blog and make money from advertising or affiliate marketing.
- Create online resources that will help other people (based around a talent you have). List these resources for sale on Amazon, Udemy, or YouTube
- Start selling freelance skills on Fiverr or Upwork
- Come up with an idea for a great product to sell on Etsy (or create your own eCommerce store with Shopify).
Get involved in the gig economy and search for gig jobs in your area.
Identify the perfect time to invest
Believe it or not, poor market conditions can actually be a great time to start investing. Think about it like this: on Black Friday every year stores have huge sales and people rush to take advantage of the deals. The same thing happens during a recession but instead of shoes going on sale, it’s stocks. If you haven’t started investing your money yet, this may be the best time. You can start investing when stock prices are at their lowest and then just relax and watch your money grow over the next 10, 20, and 30 years.
The same is true if you’re already investing. Despite how it may feel at the time, recessions are actually a time to continue business as usual.
Support the community
If lots of consumers are struggling then small-medium sized businesses probably are too. In their effort to save money, consumers don’t realize that they’re cutting off local businesses’ income. If it goes on too long, many small businesses are at risk of having to close up shop.
Continue going to places in your town that you normally eat and make sure that they’re still receiving your business. They will probably need it now more than ever and a small effort on your part can go a long way!
We hope that you’ve found this article valuable in helping you understand some things that you can do if you’ve been financially impacted by the coronavirus. If you’re interested in reading more, please subscribe below to get alerted of new articles as we post them.