Tips to Keep in Mind During Difficult Times

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During a pandemic, many areas of life are seriously affected. Medical supplies are scarce, the economies of nations are sinking, cuts in wages and unemployment are increasing, interruptions in the productive apparatus occur and, consequently, the economy and the finances of individuals are also afflicted.

Although these are difficult times, full of uncertainty and volatility regarding the stock market value of investments in general; there is always the possibility of adopting certain useful strategies to face the current economic predicament.

There are different ways of responding to the imminent economic crisis, the investments during the years after the 2008 real estate crisis which was once effective, seems futile now. Therefore, a revision to the current portfolio and making a small restructure, is not a bad idea, according to Forbes*.

It is always important to strike a balance between doubting our discernment and, in turn, believing in it, in order to develop a financial character. It is valid to doubt your own financial plans, however, it is not good to discard them on all occasions, because difficult times will pass and having a financial plan, even if it is not perfect, may be useful to better emerge from the recession.

It is understandable that in moments like this people go into despair and decide to sell all their shares or perhaps, compromise all the money they have saved for their retirement. However, according to Forbes**, the aforementioned may be a solution for only a short term, which is why thinking beyond is important during a recession, since acting desperately now could have substantial consequences in the future.

In the same report, they suggest looking for appropriate financial advice that will help improve the course of personal investments, as many people may think that the current volatility is the end of the world. However, in reality, these times will end and the financial market will regain its strength, therefore, trusting in a good consultant is always a good way to deal with the crisis.

According to Dineroenimagen.com***, and going beyond trading, it is critical to be aware that keeping calm, as difficult as it may seem, will always bring positive results since making decisions based on fear leads to negative consequences. Hence, the payment of liabilities is something which you should never attempt against; it will be better to reach agreements with creditors or resort to debt restructuring programs offered by different governments. To refuse or attempt against these, in the end, will only bring about problems when everything gets normalized.

Keeping these tips in mind can certainly be positive, first to stay calm and second and most importantly, to make smart decisions in the midst of a socially and financially difficult time.

References

RAE, D. */**

6 Tips to Ride Out Coronavirus Stock Market Volatility

 (Rae, 2020)

Rae, D., 2020. 6 Tips to Ride Out Coronavirus Stock Market Volatility. [online] Forbes. Available at: <https://www.forbes.com/sites/davidrae/2020/04/05/coronavirus-stock-market-volatility/#1a1f3b537a9b> [Accessed 8 April 2020].

ROSALES, E. ***

10 consejos para cuidar tus finanzas en tiempos de crisis

 (Rosales, 2020)

Rosales, E., 2020. 10 Consejos Para Cuidar Tus Finanzas En Tiempos De Crisis. [online] DineroenImagen. Available at: <https://www.dineroenimagen.com/management/10-consejos-para-cuidar-tus-finanzas-en-tiempos-de-crisis/120650> [Accessed 8 April 2020].

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