As it stands, we’re currently witnessing one of the fastest market crashes in history. Since the coronavirus has shut down entire countries, it is now certain the global economy will enter a recession. As market prices plummet, it becomes increasingly difficult to keep a cool head.
What’s more, budgets are getting tighter, jobs lost and businesses shutting down, investors are ever more tempted to access their savings to fund living expenses. It’s going to be hard to keep your head.
You could potentially come under real financial pressure. But what you need to remember is this isn’t the first — and it likely won’t be the last time markets will crash.
In fact, there is a real possibility this is the best opportunity you will get to deploy funds. Fortunes are made during times of chaos. Here’s what should you do…
#1. Keep it simple – Curb your spending habits
This is a very common mistake people make – they spend more than they earn. Or even more common, they buy things they don’t need. This includes spending more than half of your monthly income on “entertainment”.
Now if you’re serious about growing your money, you won’t buy unnecessary items. What you need to do is look at your monthly salary and draw up a financial plan and allocate your money to the essentials, only. Then use what’s left and put it in a savings tool like a fixed-deposit account where you’ll earn decent interest. Once you have enough money, you can “supercharge” it by investing.
#2. Keep it cheap – Invest in low-risk investments with safe returns
A good way to start investing is to use a diversified, low-cost exchange-traded fund (ETF). ETFs are just one safe way to increase your wealth because the fees aren’t expensive and you’ll receive a relatively consistent performance.
It’s also a safe way to invest in shares, especially during this coronavirus pandemic when prices have dropped.
#3. Keep at it – Build on the wealth you already have
As you earn more money, then… and only then… can you afford to splash out on”. Once you’ve built up a good amount of money from low-cost investments like ETFs, you can start delving into the more sophisticated and riskier investments.
All the best as we fight coronavirus! And please self isolate.