Coronavirus couldn’t have picked a bad time to come. Markets were over-bought and the bull cycle was about to end.
A recession is very much on the cards.
Given that, I have already started taking precautions. Here is some advice on the same.
- Minimize expenses. Don’t buy things you don’t need. Examples - the latest laptop, the latest bike, etc. Save cash.
2. Don’t quit your job. This is a bad time to lose your income. Don't quit your job to find a better job. Similarly, don’t quit your job for a startup now. Try to start it on the side.
3. Be wary of long-term offers. Businesses are losing revenue so they want cash. So, they will roll out lucrative offers like 1-year airline membership for only 10k, 6-month gym membership for only 6k. These can be a bad purchase if you are locked down in your home. So think thrice before getting such a deal.
4. Hold on to cash. You don’t know how long you will be employed. Keep that in mind before putting your cash in an investment. Don’t go all-in with your savings in the stock market just yet.
5. Get better at your job. As the world moves into quarantine, most businesses will lose revenue. They will fire some staff. Don’t let that be you. This is the time to work extra hard to make sure you are not fired.
Best of luck and stay safe!