Amidst the Cova 19 pandemic there are
three things you need to ensure you are
doing checking in on your loved ones
making sure you dodged suspect people
coughing around you when you're out for
groceries and making sure you survive
the economic downturn that the world is
facing and while I can teach everyone
how to coffin to their elbow I can help
you maintain or even improve your
financial state during this pandemic
therefore in this video I will share
with you 5 steps to survive financially
during a recession and if you're new to
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content step number 1 stash cash when
the economy starts to dip our jobs and
our income can be put in jeopardy and
it's for this reason that saving as much
money as you can is recommended now if
you've been listening to my advice then
you should already have an emergency
fund in place but if not then don't
worry because you can still make efforts
to save money even in a financial
recession you see right now it's never
been easier to save money unless you
were coping with the stress of this
pandemic by shopping online they're
really the only thing you should be
purchasing at this time or groceries
this means that the couple hundred
dollars you spend every month to go to
the bar with your friends or spend on
new clothes for the office can be put
directly into your savings now I know
that right now your spending is lower
than usual or at least it should be
but when stashing away cash try and save
about three to six months worth of your
normal living costs this means the
amount of money you would have been
spending if we weren't all on lockdown
by doing so you can avoid the slippery
slope of having to cover your day-to-day
cost with credit which can burry you
financially now I usually recommend
sending 5 to 10 percent of every
paycheck into your emergency fund
but in these tough economic times job
security is as uncertain as it's ever
been which is why I recommend you put
100 percent of your disposable income
that's left after your core expenses are
paid into this account well I hope it
doesn't happen if you were to lose your
job you have at least something to tide
you over until the economy starts to
rebound or you find new employment if
you want to be extra careful when
planning out your savings efforts then I
recommend performing some water
scenarios where you assess your
savings runway of different
circumstances were to arise for instance
how long could you last if you're
supposed to austere job if your hours
were cut in half or if you lost your job
completely if you can save enough money
for the worst circumstance possible then
you can at least have peace of mind that
you won't have to hand over the keys to
your house or beg for food if you were
to lose your job step number two pay
down debt
now that you've stashed away a good
amount of money it's time to get serious
about your debt getting out of debt
especially high interest debt should be
a top priority especially as the risk of
job loss Rises my advice is to do
whatever you can to pay off your current
debt from highest interest rate to
lowest or transfer your most costly
interest balances on to lower APR
financing vehicles also whether you're
still employed or have recently lost
your job do yourself a favor and call up
your credit card company and bank as
soon as possible many lenders are
providing temporary hardship concessions
such as allowing you to make
interest-only payments waiving interest
payments entirely or even suspending all
payments for a set amount of time
another way to access cheap cash in
order to pay down your costlier debts is
to apply for a home equity line of
credit most individuals who have equity
in their homes can apply to draw out
money against US equity but the key is
to do this while you still maintain your
employment status after losing your job
the bank will see you as too much of a
lending risk which is why if this is a
method of debt repayment you were
considering then you should do it sooner
rather than later
in fact with interest rates being
extremely low during this recessionary
time this may be one of the best cash
flow tools to use so that you don't have
to rely upon credit to pay for your core
expenses one important point to note
with a home equity line of credit is
that it can put you at risk of losing
your home see you're using your home as
collateral to gain access to the solana
credit and the bank can repossess your
home if you default on payments so keep
this in mind if you decide to pursue
this financing option step number three
diversify your income most of us are
familiar with the saying don't put all
your eggs in one basket and this adage
could be applied to your source of
income relying solely on a particular
for all your income has inherent risk
because if the economy tanks and you
lose your job you'll also lose your only
source of income and your ability to
meet all your financial obligations in
fact I think that besides the lessons of
the importance of community and access
to health care what many people will
come to learn out of this global
pandemic is that relying upon one source
of income
ie their job is a lot riskier than they
probably ever imagined you see where as
past recessions employment rates were
less affected Luke Ovid 19 virus has put
a strain on the workforce meaning that
more people will lose their jobs
the longer the economy stays idle and
people who never thought they'd lose
their job are in for a rude awakening
and this is where having multiple
streams of income can really help if one
income source starts to dwindle or gets
eliminated completely you'll have other
sources to fall back on to help keep you
afloat
now diversifying your income can mean
many things it doesn't necessarily have
to be getting another job in fact if
your spouse is working in a different
industry than you you have some income
diversity right there however if you'd
like to expand your horizons and bring
in some more income you can look into
many different options such as tutoring
online doing freelance work or
delivering groceries while people try
their best to stay inside well it might
be hard to even think about doing more
work amidst this pandemic the reality is
that you probably have more free time
now than you've had for years and
setting yourself up with a second or
third source of income and something
that you should be working on in fact
these efforts can contribute greatly to
your ability to grow your wealth during
and after this recession is past the
average millionaire has seven sources of
income and as you begin to develop your
own supplementary income sources you can
actually not just survive but thrive in
these harsh economic times step number
four protect your investments during
recessionary times it can be easy to get
emotional around your stock holdings
markets dip and rise almost daily and on
a string of down days it can be easy for
people to get nervous and cash out their
holdings to try and salvage the
remainder of their portfolio value
however the key to surviving financially
during a recession when it comes to your
stock holdings is to stay the course and
rely upon your long-term investing
strategy unless you need the cash for
your core expenses cashing out your
stocks during the recession isn't
advisable what I recommend is that you
strap in for the emotional rollercoaster
and hold on for dear life recessionary
times means a lot of turbulence in the
market but down periods are always
followed by times of prosperity heading
into the 2008 recession stocks lost more
than 50% of their value in 17 months
before shooting up nearly 400 percent
over the next 10 years this means that
you need to injure the bad to benefit
from the good and you certainly will if
you don't panic sell at the bottom step
number 5 prepare for the upswing one of
the great things about life is that what
goes up will always come down and vice
versa
meaning that while we are going to hard
times now there will be better days and
when those better days come you need to
be prepared you see in the last
recessionary period in 2008 the job
market took a big hit with unemployment
seeing a nationwide high of 10%
unfortunately young workers were hit
especially hard for May 2008 to March
2011 nearly 1 in 3 people aged 25 to 34
had a period when they were out of work
compared with 17% of workers aged 50 to
61 now obviously I don't share these
statistics to scare you but this
information can be essential in
understanding when the upswing will
occur economist suggests that an uptick
and unemployment is one of the last
developments in a typical recession so
when this time comes you have to be
ready to pounce on new opportunities
that present themselves however in life
I believe that you don't have to get
ready if you stay ready which is why
during this time of isolation you need
to use your free time to ensure the
following activities are taken care of
the first is to use your free time to
upgrade your skills this could come in
the form of working on a new designation
or upgrading your computer skills by
taking in an Excel course I know that
it's 10
to use all this free time to watch TV or
play video games but the reality is that
neither of those activities are going to
allow you to make a big move after the
recession and dramatically improve your
financial position in fact keeping your
skills current offers two main benefits
first it allows you to be up to date in
case you lose your job and need to apply
for a new role second it will actually
help upgrade your skills which you can
use to secure higher paying positions
once company's hiring budgets recover
from these tough economic times
once you've sharpened your skills it's
time to update your professional profile
make sure that your resume contains all
of your most recent experience and
credentials so that you'll be ready to
fire it off when the time is right
moreover make sure your LinkedIn profile
has a picture and a summary that's more
than three lines this is the first thing
recruiters look at and will be a
make-or-break component when applying
for a new job once you have your
professional profile updated it's time
to network during recessionary times
many people are experiencing very slow
days at work and this is a great time to
extend an invite to chat with people who
work at organizations you've had your
eye on not only will these people be
more willing to chat but this will put
you at the forefront of their mind when
the economy turns around and that
company starts to hire on more people
thanks for watching if you want to go
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