Coronavirus has been officially declared as a pandemic by the World Health Organization (WHO). And our social networks are riddled with the opinion of experts, or not, on how to take care of our health against this disease. But how should we take care of our money?
That is why, here at CriptoTendencia we bring you the opinion of several experts on the most important things we must do to take care of our savings. And that they are not infected with the “Coronavirus Effect”.
Humanity paralyzed by the Coronavirus
As we have already seen, stock exchanges around the world are reaching minimum levels. A similar fall had not been seen by humanity for more than 11 years, in the 2008 world economic crisis. That is how serious the situation is.
But, the relationships with 2008 do not end here. Well, just as in that dreadful moment for humanity, the price of “refuge” assets also fell. Like, for example, failing gold or BTC prices.
The price of oil and raw materials also fell in the face of widespread panic, as is happening today. But with the difference that, in this case, the trigger was not the United States mortgage market, but a pandemic.
It was also the first time in more than 10 years that the WHO had declared a virus 🦠 a pandemic. After influenza A (H1N1) in 2009.
Health experts and governments around the world are calling for caution, but it is also essential to be prepared for the Coronavirus outbreak to worsen.
We all know what to do to protect ourselves. Staying at home, washing our hands and being in contact with our health systems. But do you know what to do with your savings?
That is why we bring you the considerations of 5 financial advisers on what to do if you are concerned about what instability could mean for your savings.
What do experts recommend to protect savings?
The first thing any expert recommends is: Don’t panic, as this could lead you to make a mistake you might regret. After that, you can start worrying about these 4 things.
1) Leave your investments alone
Most financial advisers recommend that no moves be made in these times of instability and uncertainty.
“Now is a good time to reevaluate your portfolio goals.”
Ryan Marshall voices.
This with the intention of ensuring that any movement of your portfolio or acquisition of a new investment, is aligned with the stated objectives.
While you may believe the advice that “in crisis is the best time to invest,” it doesn’t necessarily work that way. Investing consistently is more important than trying to bite off more than you can chew.
“It is almost impossible to know what the true bottom is after such a widespread market correction.”
In times of total uncertainty like this, it makes much more sense to stop any kind of investment and keep our money in a much safer place. As it can be under our bed or in our savings account of the most respectable bank that we know.
We must prepare for more falls in the future. For in every international health situation, markets tend to react negatively. And within three to six months after the initial shock, the markets will return to normal.
2) Increase emergency savings
“The main thing to ensure now is to have a considerable emergency fund.”
Shaun Melby points out,
If you get sick and lose your job or lose your job due to Coronavirus, you will need money to go back. Aim to save expenses for three to six months in a savings account.
Or in the case of not having so many savings, the most efficient way is to choose to access lines of credit in the event that your salary is affected by the outbreak of this pandemic.
Although it is very difficult to think this, as an investor you always have to be prepared for stormy times like these.
Make a priority list of all non-essential expenses, including recurring subscriptions and memberships, like Netflix, Spotify, or the gym. Then cancel the non-essentials for the duration of this global health crisis.
3) Ready to support others
This is perhaps the most humane advice that experts will tell us. Typically, the investor mentality is to make more and more money no matter what. But we are not in a normal case.
If you can, and want, be ready to help those in need who are most in need with your money. Family, friends, “today for them, tomorrow for you.”
“Consider your family and friends who are currently in high-risk settings. At the very least, set aside time for FaceTime with people you won’t see as often. ”
Michelle Fait says.
There is no line of communication with people who are not. We are not in a normal case. In your non-financial life there will be people having a very hard time. So the cost is minimal would be to contribute a grain of sand to humanity at this time of the Coronavirus pandemic.
4) The most important tip
This is the most important tip, much more than the previous 3. And it’s wash your hands, stay home and avoid being part of the statistics.
There is no better way to safeguard your money, your savings or your Bitcoin, than staying healthy and to the best of your abilities. In other words, you can’t enjoy your savings if you’re not alive to count it.
“It is important to be informed and aware of the virus globally, in the states and locally in your community. However, try to stay calm, keep perspective and recognize what is under your control and what is not. ”Tracy Sherwood tells us.