As world economies plummet, smart investments and financial management are more important than ever
As the world continues to reel under the disruptive effects of the global COVID-19 pandemic, it seems inevitable that the consequences of this pandemic will be substantial and long lasting, and won’t fully dissipate when national and regional lockdown policies ease – or, in fact, even when the virus itself is eradicated.
A large number of industries have been shaken to their core and have been challenged to a significant degree by this international health crisis, and many perhaps-overdue developments in the working culture of various companies have been fast tracked. It is, for example, looking like remote working – also known as “telecommuting” – is going to become virtually ubiquitous in certain fields, and will doubtless play a significant role in the professional dynamics of many companies going forward.
Outside of particular industry changes and shifts in governmental policy to address broader public health concerns, however, the pandemic has plenty of implications for economic matters broadly considered, and will certainly mean that smart investments and good financial management are set to become as important now as they ever have been.
Global economies are suffering quite dramatically as a result of the quarantine which is, in many areas, still ongoing. The United Kingdom has reportedly experienced an economic downturn of approximately 20% at the time of this writing.
Here are a few things to consider looking into as a means of managing your investments and financial health effectively.
Choose your investments wisely in light of likely trends and outcomes
While it’s always impossible to predict the future – especially at a time like this – it might already be early enough to get a sense of where certain trends might be leading.
Instead of necessarily investing in “traditional” and normally “safe” channels, this is a good time to take stock and remind yourself of just how unusual the current circumstances really are, as well as the potential effects of these circumstances.
Pay attention to likely trends and outcomes as they seem to be emerging at present and plan accordingly. It is probably not the best time to get into the restaurant business, for example.
Use tools such as a best house loan calculator to help you plan and strategise more effectively, whether you are aiming to invest in property, or are looking to explore an altogether different form of investment.
Emphasise autonomy and self-reliance
One thing that the pandemic has revealed quite clearly to many observers, is the tenuous nature of the highly complex and interdependent systems that we all rely on for everything from our food delivery, to our manufacturing industries, and even our ability to visit the local gym and get a good workout in.
Going forward, it seems clear that a wise investment strategy will involve a substantial emphasis on the importance of autonomy and self-reliance. Whether you are running a small business, or are simply looking for ways to tie up some of your money so you won’t be overly subject to the twists and turns of outside circumstance, this is a good time to focus on things like localism and on-site production resources.
Depending on whether you are trying to make a savvy business investment, or whether you are simply trying to ensure that you have a greater degree of personal resilience in the event of future plight, the specifics of your “investment” and financial management strategies will, of course, change.
Even if you’re just looking for a bit more peace of mind on a purely individual level, however, this might be a great time to have your land surveyed and to think about having a well or borehole dug, not to mention trying your hand at a bit of vegetable gardening in your backyard.
Look for opportunity in industries and sectors that are set to thrive during the current upheaval
While many industries have been terribly and severely hit by the pandemic and are likely to experience hard times ahead, there are – on the flipside – a variety of industries that have actually been doing quite well during this period of stress and upheaval – and which seem set to do even better, consistently, going forward.
Many savvy e-commerce online-focused businesses fall into this category – including, of course, streaming and entertainment platforms, delivery services handling things like grocery shopping, and more.
Tech, broadly speaking, seems to be quite robust in the face of the particular challenges that confront us all just at the moment. But the specific effects of the pandemic will ultimately have to be measured on a case-by-case basis.
In any event, opportunity often hides in plain sight during periods of stress, upheaval, and challenge. If you can spot the right sectors to invest in and dedicate your attention to, you might be in a good position to rescue something positive from this otherwise awful scenario.
Downsize where possible and be smart with your resources
Efficiency and good resource management have always been essential in business – and they have also always been at least broadly positive in many domains of personal life, as well.
In the midst of a global pandemic, however, and the associated economic troubles that go along with that, waste is a potentially make-or-break issue.
This is a good time to focus on tightening up your operation, being more responsible in your personal financial management, and “downsizing” wherever appropriate.
Be meticulous in tracking your expenses and expense-related metrics
An old truism in business states that “what gets measured gets improved,” and the same can be said about investment and economic subjects, broadly.
At this particular moment in time, having meticulous systems in place to track your expenses might well be an invaluable practice, and can help you to ride out the wave and stay on top of things in a balanced and reasonable sense.
For personal budgeting, a tool such as You Need a Budget might be appropriate. For accounting matters, a tool such as Quickbooks may do just the trick.
