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Personal finance in the times of coronavirus.

- A THREAD
1/ Times are tough and they will get tougher in the short term.

Here's why:

A supply-fueled recession is relatively easy to resolve. Just produce more stuff.

A demand-fueled recession is tougher: people are just not buying stuff.

We are in a demand-fueled recession.
People are not buying stuff because there is so much uncertainty in the air.

That means non-essential product manufacturers and service providers are not selling.

They will have to lay off their staff (no sales) and the ripple effect will make things worse.
How then should you react?

1. Embrace minimalism.
2. Think liquidity
3. Think necessities.

Let's unpack these items.
Embrace minimalism: buy just what you need and save like crazy.

Should I buy a new car? NO
Should I buy a new house? NO
Should I buy a new (insert anything discretionary)? NO

Just save and wait.

Things will get much cheaper around August so you want to have cash in Q3.
Liquidity: cash is king.

I already alluded to this earlier - hold on to your cash or invest in liquid assets.

I bought a property for $XYZ,XXX in 2009 (during the recession) and sold it for an 85% profit margin in 2011.

Recessions are great opportunities for people who save.
Think necessities.
You want to start a new fashion line: NO
You want to start a new ad agency: NO
You want to start a new event planning biz: NO

Think necessities
You want to build a farm: YES
You want to start a new school: YES
You want to start a new hospital: YES
Think necessities:

Your new business planning model should answer just one key question in 2020, what do people NEED?

Just like they did in 2008, people will prioritize NEEDS and skimp on WANTS.

Don't get stuck with high fashion products in 2020. You may NOT be able to sell it
Here are the 3 key items again.

1. Embrace minimalism.
2. Think liquidity
3. Think necessities.

We will be alright. The economy will pick up again later in the year.

Just stay safe and socially distant from other people.

All the best.
time*
BTW, my recommended liquid asset is @Overwoodng. It is safe and highly accessible.

overwood.ng
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