The Coronavirus has been declare officially as a pandemic by the World Health Organization (WHO). And our social networks are infested with the opinion of experts, or not, on how to take care of our health against this disease. But, how should we take care of our money? It is for this reason that, here in CriptoTendencia we bring to you the opinion of several experts about the most important things that we must do to take care of our savings. And that the same are not infected with the Coronavirus“.
Humanity paralyzed by a Coronavirus
As we have already seen, the stock exchanges around the world are reached minimum levels. A similar fall had not been seen by humanity for more than 11 years, in the global economic crisis of 2008. So serious is the situation. But, the relationships with the 2008 does not end here. It is, like in that appalling moment for humanity, the price of the assets “shelter” also decreased. As, for example, the price of gold or BTC in your default. The price of oil and raw materials also went down to the widespread panic, as is happening today. But with the difference that, in this case, the trigger was not the mortgage market of the united States, but a pandemic. It was also the first time in over 10 years that the who has declared a virus 🦠 as a pandemic. After the influenza A (H1N1) in 2009. Health experts and governments around the world are calling for caution, but it is also essential to be prepared for the outbreak of the Coronavirus worse. Because we all know what to do to protect us. Stay home, wash our hands and be in contact with our health systems. But, do you know what to do with your savings? It is for this reason that we bring to you the considerations of 5 financial advisors on what to do if you are concerned about what instability could mean for their savings.
What experts recommend to protect savings?
The first thing you recommend any expert is: do not panic, as this could lead to making a mistake that you could regret. After that, you can begin to worry about these 4 things.
1) Leave your investments quiet
Most financial advisors recommend that you do not make moves in these times of instability and uncertainty.
“Now is a good time to re-evaluate the goals of your portfolio”. Express Ryan Marshall.
This with the intention to ensure that any movement of your portfolio or acquisition of a new investment, to align with the planned objectives. While it is possible that you created in the council “in the crisis is the best time to invest”, not necessarily works as well. It is more important to invest in a manner consistent than trying to bite off more than you can chew.
“It is almost impossible to know which is the real bottom after a correction of the market as widespread as this”.
In times of total uncertainty, as this makes much more sense to stop any type of investment and keep our money in a place much more secure. As can be under our bed or in our savings account the bank’s more respectable that we know about. We must prepare ourselves for further falls in the future. Therefore, in every situation of international health markets tend to react negatively. And in the course of three to six months after the initial shock, the markets will return to normal.
2) Increase emergency savings
“The main thing that you must make sure now is to have an emergency fund considerable”.Notes Shaun Melby,
If you get sick and lose your job or lose your job due to the Coronavirus, you will need money for the appeal. Has as objective to save expenses for three to six months in a savings account. Or in the case of not having so many savings, the more efficient it is to opt out of access to lines of credit in the event that your salary is affected by the outbreak of this pandemic. Although it is very difficult to think this, as an investor you must always be prepared for stormy times as these. Make a list in priority order of all the non-essential costs, including subscriptions and memberships, recurring, such as Netflix, Spotify or in the gym. Then, cancel the non-essential for the duration of this crisis of global health.
3) Ready to support the other
This is perhaps the council is more human that us, say the experts. Normally, the mentality of investors is to make more and more money regardless of that. But we are not in a normal case. If you can, and want to, be prepared to help with your money to the people in your close circle who are in greatest need. Family, friends, “today for them, tomorrow for you”.
“Consider your family and friends who are currently in high-risk environments. At least, reserve a time to FaceTime with people that you do not see so often”. Says Michelle Fait.
There is No line of communication with the people who are not. We are not in a normal case. In your life is not financial there will be people having a good time. So the cost is minimal would be to contribute a grain of sand to humanity in these times of pandemic Coronavirus.
4) The most important advice
This is the most important advice, much more than the 3 previous. And is wash your hands, stay home and avoid being part of the statistics. There is No better way to safeguard your money, your savings or your Bitcoin, that staying healthy and at the maximum of their capabilities. In other words, you can’t enjoy your savings if you are not live to tell the tale. “It is important to be informed and aware of the virus at the global level, in states and locally in your community. However, try to keep calm, maintain perspective and recognize what is under your control and what is not,” says Tracy Sherwood.