With jobs losses, the stock market way down and just uncertainty all around, people are worried about their money and asking what to do now. Everyone’s situation is different, of course, but there are somethings that most everyone can benefit from.
Steve Siebold is author of the book ‘How Money Works’ (www.howmoneyworks.com) and a self-made millionaire who has interviewed more than 1,300 of the world’s wealthiest people over the last 35 years.
7 steps to pivot financially in the COVID world, according to Siebold:
1. Change your perspective about money
In times of chaos like we are facing now, most people start making decisions about money from fear and scarcity. The self-made wealthy know that times of chaos brings massive opportunities. Start by changing your core beliefs about money and looking at it through the eyes of freedom, opportunity, possibility and abundance. This will ground you in objective reality to avoid making irrational emotional decisions.
2. Be entrepreneurial and solve problems
Many people were forced to take a pay cut or lost their jobs all together because of COVID. It’s time to start acting entrepreneurial. At the heart of every big fortune was someone who solved a problem. In times of chaos like we are seeing now comes all these new problems that are going to need solving. These problems will be everywhere and face both the masses as well as be industry specific. Use your natural talents and abilities to find the solutions and you’ll find plenty of new ways to earn money.
3. Everything is negotiable these days
If your left trying to figure out how you are going to pay your mortgage or make your car payment this month, you’re not alone. Times are tough for a lot of us and your lenders know they have to work with you. In this COVID world we are living in, absolutely everything is negotiable. Reach out to anyone you pay monthly such as banks, credit card companies, landlords and car title holders and ask them to reduce or defer your payments until this is behind us.
4. Inventory your assets and sell for cash.
If you’ve been wanting to clean out the closets and the garage, now is the time to do so and make money in the process. Items you no longer need can all be sold for cash like kid’s toys, garden tools, slightly used furniture, sporting equipment and anything else you don’t use or really need. Sell on eBay or other outlets and keep the cash in a safe place in case you need it if the shutdown looms on.
5. Leverage your network
Now is the time to leverage your contacts, acquaintances, former employers and anyone who can help you whether you have lost your job, are in need of additional work and projects, or who might be able to make an introduction to someone who is in need of what you have to offer. The world’s wealthiest people use leverage all the time, and so should you especially during these difficult times.
6. Get excited for the turnaround
Although times may be tough now and it’s hard to imagine, it’s not going to be like this forever. In fact, when the turnaround hits, hold on tight. It may take some time, but eventually business is going to comeback full swing. The self-made wealthy are getting ready. You should be, too!
7. Learn how money works and prepare yourself.
Some medical experts are predicting a second round of the Coronavirus come the fall. Now is the time to learn how money really works and get prepared. Re-evaluate your financial situation and study the basics of personal finance. If you’re lucky enough to have one, contact your financial professional and make sure you have things in order and are prepared for the unknown.