COVID-19, Some Thoughts
The world is shutting down. Some people are panicking, some don’t seem to care much, both of which are very dangerous. We don’t know how long this will last, how bad it will get, and most importantly how deep the damage will go. I am not a doctor and this piece is not intended to give any advice as it pertains to the virus itself. Be cautious, follow recommendations from the authorities and cooperate with others. If you have any symptoms, get tested immediately.
I have had the opportunity to be in Bali during the initial shutdown of the last few days and there are some things that seem plainly evident that we need to change in the future. I have been able to observe the madness from a far and some things are painfully evident. My intention is simply to give my thoughts on how we can be more prepared for tough situations like this in the future. Too late to implement this time perhaps, but never too late for the future.
People are not ready for this and it showed in dramatic fashion. People running to grocery stores stocking up on hand sanitizer, water, toilet paper, canned food and everything in between. Check out lines a mile long. This left store shelves empty and many people without food and other necessities. This means only one thing. People have no food/supply storages. There needs to be a consistent effort by all of us to create a food and supply storage for ourselves and those that could be in need. The fact that everyone rushed to the stores to get supplies meant they simply didn’t have any and that causes incredible fear and panic.
Make it a priority to start building your storage immediately. Stock it with water, personal hygiene items, canned food, and medicine. You don’t need to buy it all at once but you do need to buy it. I know people who do have their storages well stocked and they can feel some security knowing they are covered for an intermediate amount of time. They don’t need to panic or tackle people at Costco. Make a list of the essentials and simply buy a little extra every trip to the store until you cross off the items on your list.
The second factor when it comes to preparation is money. Very few people have savings, very few. I am in the real estate industry and am a member of multiple Facebook groups with agents and other entrepreneurs. I have seem dozens of comments from people terrified of the financial consequences this may have on businesses and jobs. Restaurants are being closed, sports have ceased, air travel will undoubtedly be massively affected. People are going to lose if not their entire jobs, certainly their ability to provide for their families for a time if they work in a sector that has been shut down.
We need to save money! If this situation has taught me anything it’s that I need to save MORE money! As much as possible! Stop buying dumb shit and start saving! If you have a 3,6,9 month emergency fund you can be at peace knowing you will be taken care of at least that long. If you have nothing, you are going to panic. So do what you have to do to create that fund! When things get back to normal, which I believe they will, get your emergency fund in place! Take a second job, sell your fancy car, do whatever you have to do to create that 3 month reserve AT LEAST! Analyze your needs and calculate how much money you need per month to pay your essentials. Then take your monthly essential expenditure (M.E.E) and multiply it by 3. That’s your target savings goal. You should know what that number is. Let’s use a round number as an example.
Let’s say you need $5,000 a month to cover your housing, transportation, and food/supplies for a month. You should have $15,000 in savings AT LEAST! $30,000 ideally. How do you get there? You sacrifice! Get a second job and put everything in the fund, sell your car, buy a cheaper one and put the profits in savings. Do not stop until you hit that number! It may take a few months, it may take a few years depending on your situation but it must be done!
Another recommendation is to have emergency credit cards. This is not the ideal situation and having an emergency fund is the ideal but the point is to have access to money in a crisis. If you have credit cards already, pick one or two, pay them down and keep them for emergencies. Get educated on how to do this since credit cards are different. If you don’t have an emergency fund yet but you have a $10,000 credit card keep it for emergencies only! It could make a tremendous difference! Stay up to date with financial news and if rates drop, apply for credit responsibly and use it carefully. Remember this is for emergencies, not Yeezys.
Last but not least, be kind to people. Show empathy and kindness. Undoubtedly rough times like these can bring the worst out of some people, understand that it’s because they’re scared. Preparation breeds confidence. Lack of preparation breeds fear. May we all make a commitment to be better prepared for lifes unexpected pitfalls in the future.
Stay safe.
