How To Prepare for The Upcoming Financial Crisis
How To Prepare for The Upcoming Financial Crisis

Prepare for the Upcoming Financial Crisis: 10 Things You Should do ASAP

Before anything else, I will tell you that’s one of the most important posts you would read here on Monetize.info. Please do not ignore it. You will thank me in a couple of months.

If you are a regular Monetize.info reader, you know that we have been preparing to face the global financial crisis, which is already here, since 2020.

I did well in the ’08 crisis and learned many things that helped me anticipate the upcoming turmoil and prepare accordingly.

So, without further ado, I will list ten things I suggest you do to stay safe and why not make a profit in these troubling times.

Make sure you and your loved ones are safe.

That’s the most critical piece of advice I can offer you. Your family, close friends, and loved ones must care for their health and safety.

So please don’t take this advice lightly. Eat well, get enough sleep, relax, and ensure you’re in perfect mental and physical condition.

Reduce your expenses.

If you still need to do it, you should closely examine your monthly expenses and cut the things that are no longer essential. I did this in 2020, right in the middle of the pandemic, and I was shocked to see how much money I was spending on things that I could easily cut or reduce.

For example, I subscribed to online tools and services I barely used. Also, I could downgrade my mobile phone payment by around 60% by switching to a smaller plan and the TV subscription by about 30%.

Could you look closely at your monthly bills and start reducing or cutting what is not essential as soon as possible?

Lower your debt or try to remain debt-free.

This is important. As the interest rates rise, you’ll pay much more for your loans. Also, the banks and lending companies will become ruthless in getting their money back. That’s why you need to lower your debt as much as possible and ensure you pay the loans on time. It would be awesome if you could quickly become debt-free.

Could you make sure you’re not easily replaceable?

This applies to you even if you’re employed or a freelancer. During a financial crisis, many companies reduce their working force; the first ones laid off are persons who are optional to the business.

So, ensure you bring value to your employer or the businesses you work with. Become better, learn new things, and automate as much of your work as possible to have competitive rates.

This is also a good opportunity to review your withholdings and ensure you’re fully optimizing your take-home pay. After all, life changes all the time. Use a withholding calculator to see what impact a new baby, new house, or any other major life event can have on your paycheck.

Have 6-8 months of expenses covered.

If you get laid off or do not get any more work as a freelancer, you should have AT LEAST 6-8 months of expenses for your family covered. I recommend even having 12 months of expenses covered. I know this sounds too much, but remember that we don’t know how tough the crisis will be.

Keep some of your savings in hard cash just in case the banks limit the withdrawals. It’s not SCI-FI; it happened before in the 08 crisis in Greece and Cyprus. For instance, in Greece, the daily withdrawal limit was only $67 each day.

If you plan to sell anything, do it now.

If you plan to sell your house, car, or other assets, I recommend doing it as soon as possible. Soon, there will be less money in the markets, and interest rates will go up, so people will be reluctant to purchase things that are not essential or are overpriced now.

Educate yourself – Learn new skills

In the 4th point of this list, I’ve told you to ensure you’re not easily replaceable. In a recession, companies look for ways to cut their costs. One way to do this is through automation.

Besides automation, new industries, like blockchain, web3, digital healthcare, electric cars, etc., are rising. So feel free to reinvent yourself for the jobs and opportunities of the upcoming years.

Develop multiple income streams (side hustles)

Multiple income streams ensure you will still make money even if you lose your primary job or income opportunity. In times of financial crisis, relying on multiple income streams is risky.

You may lose your job, your stock investment may plunge in value, etc., so ensure you have a few income streams in diverse industries.

Check the money-making opportunities we recommend and choose one or two that fit your skills and risk profile.

Keep your eyes wide open for opportunities

A financial crisis is not only about hard times but also about opportunities. Netflix, Airbnb, Uber, and a couple of highly successful companies of today were started in the 08 crisis.

On top of that, the stock, commodities, and other assets were at good discounts. As Warren Buffet said, “Be fearful when others are greedy, and be greedy when others are fearful.” In a financial crisis, most people are fearful and sell their assets at great discounts. That’s when you can get them at a fraction of their actual value.

Pay attention to SCAMs

The last piece of advice that I would like to share with you is to pay attention to SCAMs. That’s because criminality rises sharply in troubling economic times, and many want to get rich by stealing others’ hard-earned money. So research everything, and avoid falling for promises too good to be true.

(Bonus) Have a plan

It’s mandatory to have a plan and stick to it if you want to be well in these troubling times. If you don’t have one, you will be easily distracted by the news or the rising events. As long as you have your plan, you can adjust it quickly, but do everything you can to reach your goals.

Conclusion

And there you have it: 10 things + bonus that you should do to do well in the following financial crisis.

To recap, this is what you should do to prepare yourself:

  • Take care of yourself and the health and security of your loved ones;
  • Cut or reduce your debt and your expenses that are not essential;
  • Have money aside in case you get laid off and for investments and opportunities that arise;
  • Learn new skills and become better at what you do;
  • Develop multiple income streams;
  • Pay attention and do not fall for SCAMS;
  • Have a plan!

Even if you need to prepare, starting action now is okay.

What about you? Are you prepared? What actions would you take to be safe in these troubling economic times?

Let me know the comments, and remember to share this article with those who may need it.

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About Daniel S.

Daniel is the founder of Competico SEO & CI agency and co-owner here at Monetize.info.Since 2005 he helps online business owners to establish a presence online and win the digital race.

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