Most of us are likely to experience at least some economic hardship as a result of Covid-19. But how can you recover from this and get back on your feet in no time at all?
At its core, Covid-19 (or coronavirus) is a global pandemic and health crisis, and one that will leave many requiring an extensive period of physical recuperation in the near-term.
In the longer-term, however, the socio-economic impact may be felt by even more citizens across globe, regardless of whether they live in developed, emerging or frontier nations.
This infographic shows that the outbreak will undoubtedly trigger a snap global recession, and one that has been brewing since the second quarter of last year. But how can you survive the worst of this crisis and get back on your feet in a strained economic climate?
The Economic Impact of the Coronavirus on the World
The coronavirus outbreak, which originated in China, has infected more than 1.5 million people around the globe so far, according to the World Health Organisation. Thi … read more
1. Cut Back on Costs
Whenever you’re trying to survive (and perhaps thrive) during a recession, it’s important to think like an entrepreneur.
This is particularly relevant when it comes to financial management, as any recession (and especially one that forces businesses to close and lose significant streams of revenue) has the potential to reduce your income and that of your household.
To compensate for this, your first step should be to reduce your expenditure and cut your cloth to suit the situation. This can help to optimise your disposable income levels at all times, enabling you to avoid the cycle of debt and remain on top of your payments.
However, the real challenge is to cut your living costs without overly compromising your quality of life, particularly if you have a family who are impacted by your various decisions.
One way to achieve this is to review and prioritise each item of expenditure, as you focus on paying your bills and covering basic living costs such as food, drink and utilities as a matter of urgency.
Then, you can see how much income you have left, before trying to commit a minimum of 10% to a savings or investment account.
This ensures that some of your money is always working for you, creating incremental and passive income that can accumulate significantly over time.
2. Create New and Relevant Skills
Over the medium and longer-term, you should also begin to focus on adjusting your skillset and ensuring that this is optimised for the real-time economy.
Make no mistake; the economy is sure to change and recover slowly from the Covid-19 outbreak, and while this will trigger a period of austerity, it will also create opportunities for individuals who are prepared and boast transferable skills.
We’d expect ecommerce to fair better than brick-and-mortar retailers in the coming months, for example, continuing a longstanding trend that has seen online sales grow to account for nearly 20% of all consumer activity.
It may therefore be wise to develop skills in this sector, whether you focus on web design, software development or key programming abilities.
There also remains a strong and consistent demand for online copywriters, and targeting this type of career opportunity can stand you in good stead going forward.
In more general terms, you should also focus on developing viable transferable skills such as leadership, management and problem-solving.
The latter skill is particularly important, as this is indicative of an analytical mind and one that can thrive in numerous, well-paid job roles and lucrative industries.
However, the most important thing is to identify the core skills that you need in the prevailing economic climate, while seeking out proactive ways of building these over time.
3. Get Entrepreneurial
We’ve already spoken about the benefits of thinking like a business during times of economic crisis, and there’s no doubt that an entrepreneurial mindset can benefit you in more ways than one.
This is particularly true in the short-term, as you may well experience some economic damage both during the outbreak and in the immediate aftermath.
To negate this, you may want to consider tapping into your entrepreneurial spirit, by creating timely and lucrative money-making opportunities that can fill the void left by a reduce income stream.
Buying and selling affordable goods online can be an excellent source of income in the current circumstances, for example, as can marketing existing skills as a contractor to firms that are still economically active.
You may even want to consider investing your disposable income and any capital that you have spare. Of course, you must prepare for this eventuality by building a strong foundation of knowledge, but this can be a lucrative endeavour that provides sizable, long-term gains.