You most likely have been hearing and seeing the devastating impact the Coronavirus is having on the world. This unprecedented event is a global pandemic and has brought with it a wave of social panic, employment disruption and financial market volatility.
People react to situations differently, some people may be experiencing fear, uncertainty and anxiety, while others will see this as an opportunity.
However you are taking this, we want you to remain calm, be kind, patient and continue to spread the love (virtually), not just to everyone else, but especially to yourself.
I'm sending you lots of love and positive vibes hoping that this situation passes quickly and we can all get back to our normal lives.
To keep abreast of the situation, these are my top tips on how you can be financially savvy amid COVID 19.
When you meditate and breathe you focus on the front area of your brain which allows you to be less emotional. Take a deep breath in through your nose and breathe out slowly through your mouth. Staying calm will allow you to focus and make informed and logical decisions.
It is important at this time to go with the flow. Like Marlin, the turtle from the finding NEMO movie says " you just have to ride the wave". The market is at it's lowest but whatever goes down comes back up.
I have had many calls this week of clients unsure of what to do with the market so volatile and at an all-time low.
As a licensed financial adviser my recommendation has been that if you are invested correctly according to your risk profile, then this is just part of the cycle. I have had many people ask me if they should take out their money and change it to cash. My answer has been, that the only time you really lose money is when you crystallize it and change it to cash. History shows that as fast as the downturn occurs, the markets also recover just as quickly when you least expect it and if you have changed your investment to cash, you may not have time to reinvest it and will lose out on the gain.
So stay calm and ride the wave.
With interest rates at an all-time low. This is the time to reduce your debts and pay much as you can off it. If you have credit card debt, get rid of it. Make extra repayments on your home loan, to be ahead and make use of the low-interest rates. Work out a payment structure and stick to it.
By now you all would have heard me talking about emergency funds, but if you have no clue what I'm talking about don't worry let me explain.
An emergency fund is a bank account where you set aside money to cover urgent or unexpected costs. This could be car repairs, an urgent medical bill or unexpected travel costs.
You can build up your emergency fund over months or even years, putting in as much or as little as you want. However, having one there even if it has $500 or $2000 is better then not having one at all.
In times like this, it is handy to have an emergency fund to rely on to help cover and pay for the unexpected costs you may occur.
Above all stay safe and keep that social distancing going. We don't know what the next day, week or even few months hold. But by being informed rather than reacting to fear, we are already a step ahead.
Lot's of love and my thoughts are with you during this confusing and ever-changing time.