Recessions are periods of economic pessimism accompanied by a decrease in business and personal spending, an increase in unemployment, a decline in real estate prices and a drop in the stock market. How do you protect your income during these dire circumstances?
First, you remember that every crisis is accompanied by an equal or greater opportunity. Second, you identify those areas of opportunity. Third, you act.
Let’s dive into the actions you can immediately take to protect yourself.
Should You Worry About Your Income During the Coronavirus?
I’m going to share financial advice with you today.
The people who listen are going to do extremely well and ones who don’t will be at extreme financial risk.
This message to you is that the world has changed. We have entered a new era. Now that the coronavirus is here, the world is not the same as it was even a couple of weeks ago.
As a scientist, I can tell you that this pandemic—and the recession it is causing—are not going away any time soon. While we can develop treatments, that is simply management of the disease.
While treatments can save more lives, they still allow the virus to spread from person to person, which will ultimately lead to overwhelming our health system.
The only thing that is going to fix this global pandemic is either a vaccine or a complete elimination of the disease. That is not going to happen for a year or two years (and maybe longer).
The Risk to Our Economy
Then, we have the economic repercussions, which put your income at risk.
Whatever industry you are in, it has been affected. You may see a reduction in your income, elimination of your income, or potentially, the elimination of your entire industry.
The reason is this: All businesses sell to either other businesses or they sell to consumers.
Both of these groups have been hit hard.
It is estimated that up to 50% of small businesses will enter or near bankruptcy during this market recession. Consumers (the public) have filed more unemployment claims in recent weeks than at any other time in recent history.
In the last week of March, more than 6.6 million Americans applied for unemployment benefits — a record number.
What Can You Do To Protect Your Income During COVID-19?
So, what can you do to protect yourself? You’re going to have to pivot and learn new skill sets.
Take this time while we are in the early stages of the lock downs and you have quiet at home to learn new skill sets.
The areas that are going to thrive during this pandemic are the ones related to remote or virtual deliverables, such as:
- e-learning / home schooling / virtual classrooms
- remote team management, such as software, apps, communication tools, etc.
- video production and editing
- audio production and editing
- social media management
- digital marketing
- phone and video sales
- copywriting (writing to sell)
- sales funnels (landing pages that sell)
- etc.
Careers related to healthcare or food production will also do very well, but they might be more difficult to break into, and medical careers in particular will require formal education.
What is empowering about the list above is that you can learn these skills from the comfort of your home during the lockdowns and be prepared for what the economy will look like on the other side of them.
Pivot Now
I’d encourage you to take action now to start learning new skill sets that will be in high demand in a post-coronavirus world, because your existing revenue streams are going to be constricted.
You can pivot, you should pivot, and you are capable of pivoting.
Remember, today in 2020, it’s not the strongest who survive. It’s the most adaptable.
So, will you adapt? Or, will you stay stuck in old norms while the world around you changes?
Truly, the choice is up to you. Hit me up in the comments with questions, ideas or suggestions and let’s discuss!