It has been one year since the down turn in the market started. Stocks and Crypto are down up 40 to 80%. You think the world is ending and you do not want to touch anything. Interest rates are up 4% to 5% and you just lost 30% of your purchasing power to inflation and the property market is set to crash..but for the moment you don’t feel the pain because you still have savings..or your completely uninformed..but how is this going to look one year from now?
Its tough times ahead!!Do not get caught off guard!You can turn this around to your favor. However there’s no need to focus on the doom, instead lets look at how to seize opportunity. Here are some few steps you can take.
- Get a job NOW or find a way to increase your income (example online business)!! if you don’t have one, also don’t quit your job now unless you have a plan!!!. The best investment the next 24 months is having a fixed income that you can rely on to pay your fixed bills. Depending on where you live you lost at least 30% of your buying power, you’ll need the extra money to make sure your bills are settled. Many companies and households are currently spending their savings so were all good for now..but how is it going to look one year from now once the savings are depleted?´Many companies that are disrupted will go bankrupt and will lay off employees. If your company is showing danger signs..start job hunting..try and secure a safe place in the next year, in the right companies of the future. (example: not a good time to be in combustion engine companies).
- Reduce your expenses, save and invest your money in solid profitable companies that are selling for a discount…you can literally gain 50% of your money by investing now in the right companies and waiting for the next bull run. Do your research and only invest in profitable companies of the future!
- You can now put a small amount in high risk assets like Crypto. It might be a good idea to start educating yourself on this asset class. It could be the next Dot com bust and boom in the making! You want to be in for the Boom part. Blockchain could be the future!
- Window shop, don’t shop now: With interest rates going up, it is likely that there will soon be less demand to buy property.We all know by now that High supply and low demand = decrease in price. If you dream of owning a flat or a house…for chrisssake….don’t buy now..everything is at the top…be ready for the 30% drop, for this you need to monitor the market.You may have 2 to 5 years to prepare for this. Will you be ready?
- Stay physically and mentally healthy, you need to have a clear head to make the right decisions, and to be strong if your situation changes. Also when the storm is over, you want to be healthy enough to enjoy the fruits of your investments and hard work.
Good luck!!!