5 Things To Do In Corona Virus Times To Secure Your Financial Future

As Covid-19 has taken the world by storm we realize that the most precious resource we have is our time. In this article I will post some guidelines I think you should really consider follwing during 2020 to earn yourself more free time in the future by starting to invest and get your money working for you instead of working for money all your life.

At the time of writing, 2020-03-15. The Corona virus or Covid-19 has taken the world by storm. Along with the oil price drop last week this has caused the biggest stock market decline in one day that we have seen in over 30 years when most major markets closed at over 10% down on march 12th.

The Corona Virus and its havoc has effected the tourism industry first and foremost with airlines cancelling most of their flights and hotels laying off people. But rest assured when countries are locking down and imposing curfews on their citizens, several companies will eventually suffer losses, it’s not a matter of when, it is a matter of how large those losses will be.

The Corona Virus & the stock market decline could be the start of a long financial depression. At the very least this will put the economy as we know of it today in turmoil for the coming 6-9 months. Putting your head in the sand like an ostrich will do you no good. You have to face reality and take responsibility for yourself and your family. But remember this: Humanity have been through similar viruses like the Corona Virus before, however awful and unfair it is – this too shall pass.

Until it does it is essential that you are prepared to use this situation to the best of your abilities. Therefor I would advice you to follow these simple steps to ensure a brighter financial future for yourself in these strange times.

1. Make a budget and stick to it

I would advice you to make a simple budget of how much money you can realistically live on each month without excessive spending. Just the basics. That means: Rent, food, and household bills like electricity, internet, phone and transportation.

Now more than ever it is important to stick to that budget. Now is not the time to go out and buy a new TV or spend money on new fancy clothes. Now is the time to prepare for what might come. Even if it never does you will be glad you did it.

2. Create an emergency fund that lasts you 6 months

At this point there is a real possibility that you will be laid off from your job during 2020. And you should plan for it, starting right now. After you have done your budget you now have a number to work with how much money you need each month. Multiply that number by six months. And make sure you have have that money available in a bank account should the worst occur.

3. Plan B

You should also plan for what you would do if you got laid off during 2020.

Can you move back to your parents? Can you start downsizing your spending habits right away so that you won’t be leaking money. Do you really need that cup of coffee on your way to work. Do you really need to be eating lunch out everyday? Now is really a time you should be making and eating your own lunches both for money and health reasons.

4. Got a sidehustle? Double down on it.
Have you got a sidehustle that you have entertained yourself with on evenings and weekends? If so, now is the time to start doubling down on that side hustle. If you haven’t got a sidehustle I suggest you start one. A side hustle could be a blog that earns revenue, a podcast, it could be you cutting someones hair on weekends or selling used clothes online. Now is not the time to take it easy. Now is the time for taking massive action and responsibility.

5. If you have money over – Learn to invest it in the stockmarket

If you have money left over after you have 6 months salary put away. You should do the following:

a)     Set aside a week to learn about indexfunds from a trusted source. Buy a book on it with good reviews. Read it. This should not take you more than week. Don’t overdo it. It’s not rocketscience.

b)    Open an online stockbrockers account (depending on your country this will vary).

c)     Starting right now. I would suggest to monthly start investing 10-20% of your gross salary in atleast three index funds with low management fees (0.0-0.3 %).

A good mix of three indexfunds is: A Global indexfund, a Europe indexfund and an American indexfund.

I would to continue this habit for the forseable future. When you pick these indexfunds they will basicly follow the stockmarket in their respective regions. So the global indexfund will follow the global stockmarket the europe index fund will follow the european stock market and so on. Indexfunds average about 7-8% return on your money every year. And right now, the stock markets and the indexfunds is on sale because people are panicking. But reason has to prevail here. If there really is something to panic about - if the world is about to end, don’t you have bigger problems than having some money invested in the stock market?

d)    Nobody can time the market. But if there is ever a good time to start, this is it. When we look back at 2020. We will remember it as a year when the stock market fell rapidly - and those who dared to invest made a chunk of money in it. Make sure thats you.

e)    When you take these steps during 2020, your future self will be forever grateful for it. Because you will have created more financial stability for yourself, and more financial stability means more time for you to do what you want, if that means growing flowers in the garden, spending time with your family, reading or starting a business – that is up to you, but remember that nobody will do the steps above for you. You have to do it.

Disclaimer: I do not take any financial responsiblity for investments you make in the stockmarket. When buying stocks, bonds or funds there is a always a risk that you will lose money. However I will say this. The biggest risk in life is taking none.

Much love, stay safe!

Jim Svensson
Founder of Selftelligence