There has been a great tide going out in the last four to six weeks across the world due to the Coronavirus Epidemic. In a time like this, what do you do to overcome the financial storm that comes with it, without being hit to rock bottom?

Are you aware of the opportunities that you can also unlock at this time?

Warren Buffett, the legendary investor who is worth $68 billion has probably lost $10 billion or so in the last four to six weeks (as you do!)

He’s got some great sayings, and there is one that is pertinent at a moment like this, “it’s only when the tide goes out that you see who’s swimming naked”.

From a finance perspective, it’s very easy to take a lot of risk and invest heavily etc. but if you don’t have a cash reserve set aside and/or a Plan B, when the tide goes out and the times get really tight, it will greatly affect you.

For example, for companies with big cash reserves, such as Apple that sits on $200 billion of cash, they are going to be alright. On the flip side, for companies, particularly in the tourism or aviation industry, many of them are pretty volatile for the last five years prior to all this coming through, it will get even worse. The companies that may be going strong at this time will be those that had been preparing for the rainy days and those who haven’t will rapidly go down.

On a personal level, you need to be really thinking, if things got really tight how will you get by and for how long? You really need to start thinking about building up a cash reserve to get through.

Now is a great opportunity to do that – to just sit and reflect on questions like, “what do I actually need and what’s here that is a luxury? What’s the baseline? How can you eat more food and not waste it? What are you paying for that you don’t really need to be paying for that you can cut out if you need to? You need to be thinking about those backup plans now more than ever.

You should also think about what else you can do to generate an income? For example, you can start those side businesses that we’ve been talking about – the online business and all that kind of stuff. These are all going to be options, going forward.

All business, social groups and gatherings are now effectively online. If you can be remote and earn an income, then you’re going to be in a great position. A lot of people and companies are already making money out of these not because they are evil but because their business model is perfect for times like this. So, there’s definitely going to be opportunities out there for those who are swimming.

Just make sure you get some clothes on pretty quick.

If this is a topic that you would like to discuss in more detail, please go to www.MasterYourMoneyNow.com.au/getstarted to book in your complimentary 30 minute strategy session.

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Disclaimer: This information is general information only.  You should consider the appropriateness of this information with regards to your objectives, financial situation and needs. Past performance does not guarantee future returns.