The Covid19 World After Global Lockdown

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The world will be a different place when we finally get to emerge from the COVID-19 lockdown. I have shared some things I have learned from the pandemic: The first post is here and the follow-up post is here.

At the time of writing this post, states are starting to open up the economy again and there is a lot of argument on whether that is a good idea or not. Personally, I can understand the reasons for re-opening the economy, but I also understand the reasons for why it could be a not good idea.

Since the economy has been essentially closed for two months, it is causing issues for the everyday person. Before the global economic shutdown, many of the people in the US were living paycheck to paycheck with too much month remaining at the end of the money. Going into the lockdown, many are still trying to re-coup from the 2008/2009 Great Recession.

Being a millennial, I entered into the job market during the 2008/2009 Great Recession and I am entering my prime earning years right now during the global economic shutdown. The millennials are essentially a new “lost generation” and there are some that say that this generation will be the first to earn less than the generations before them since I think they started tracking this information.

When we are able to “continue as normal” in our lives, I wonder what rights we will give up. I hear rumors of papers that show vaccinations and that you are Covid-19 virus free. Personally, it rings of the yellow stars and identification papers the Jews were required to have during the Holocaust. It’s just the upgraded version and a method to track and control the population. Remember, we received the warning from one of our Founding Fathers:

Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety.

Benjamin Franklin

We gave up liberties after the September 11th attacks, which forever changed airport security and what is/not allowed in our carry on bags.

As we emerge from this COVID-19 pandemic situation, DO NOT LET FEAR CONTROL YOU. Keep your wits about you and pay attention to what rights and liberties they want to take away “for your safety”. Take the time to consider the long-term implications of the things desired to be part of the new, everyday life before allowing it.

Preparing for the Post-Covid19 World

The best way to prepare for the post-Covid19 world is to consider what you believe the world will be like when we emerge. What are the various ways that the world will look or operate?

Based on your belief and understanding of what the world will look like, build your plans on that. The world will certainly not be what it was when we entered into the global lockdown.

My recommendation: Have a number of plans. Have a main plan, and have backup plans and alterations to your plans based on various scenarios for each of these that will allow you to pivot quickly and save you time so you aren’t trying to adjust in a panic. Have your plans working toward a certain “end goal” of what you essentially want to achieve for your way of life and work to have different plans that will get you there based on your view of the emerging world.

Financial Security

No matter what situation you expect to find yourself in, financial security is certainly a concern. In this regard, I always recommend that you reduce/eliminate as much debt as your budget allows.

Personally, I turn it into a game called “How Fast Can I Get Rid of This Debt”, where I create a projected time table of expected payoff and I try to beat it by making small, consistent extra payments.

Currently, with the Federal Reserve interest rates floating between 0% and 0.25%, savers aren’t making much money. So, save if you can – but it will not help you much over time. Do something more useful with your money.

Stock Market/Investing

Any money you can afford in your budget to invest, do so. This can be in your 401k or another account for investing.

I have a 401k, but depending on the provider, your investment options may be limited. If your company has a 401k program, PLEASE participate in it as soon as you are allowed to join. My recommendation is to start at the minimum match contribution of the employer. For example, if your employer does a 5% match, have 5% of your paycheck going into your 401k. Again, use what is most beneficial for your situation, but I recommend the Roth over the Traditional.

If you don’t already have one, find a financial advisor and get account(s) setup for investing. Generally over the long term, you will see increases. You can also ask them about setting up accounts for your children that they can even put money into. There are various options available from what I understand, but a financial advisor can give you more information and guide you based on budget and what you are looking to achieve.

When it comes to investing, I am a huge advocate for learning all you can so you can have an intelligent conversation with your financial advisor. In this case, you can take college courses on audit, or you can read books on the subject – Robert Kiyosaki, Warren Buffet, and many others have a number of books that will teach you and direct you to even more books.

Hard Metals

One way to put your money into better use is by purchasing hard metals (gold & silver).

I think it is good to have gold and silver as part of your assets. If you have gold and silver as part of your assets. I have heard that 10% of your assets should be in gold – however, gold isn’t always incredibly affordable, so I include silver in this personally as it is more affordable by comparison.

If you do decide to invest in gold and silver, I mean owning the physical bars. I recommend getting gold and silver bars and/or gold and silver rounds. There are options that are more numismatic – unless you are a coin collector, I would just go with the basic bars and rounds. You want to have the physical bars and rounds in an easy access location and in your physical possession.

You do have the option to get a safety deposit box at the bank and put your bars and rounds in there. What happens if you need to access that and the bank is closed because it’s a bank holiday, a weekend, or for whatever reason the bank may be closed?

Cryptocurrencies

This is something I haven’t been able to understand as of this posting. From what I currently understand, the cryptocurrencies are secure, but the exchanges, not so much. On May 8 or 9, 2020 there was a Bitcoin price crash that extended out to the top 10 cryptocurrencies (from headlines and article summaries I saw), where the Bitcoin price decreased by about $2k in a 24 hour period. During this drop, it is my understanding that the exchanges couldn’t handle the traffic and some couldn’t access their accounts for something like 30 minutes I think.

This is partially why I am wary about the cryptocurrencies. If the internet should go down, or one is unable to access the internet – how does one complete transactions?

If you understand cryptos, certainly do what you feel is best for you and your situation, but I do highly recommend understanding how they and the exchanges work…..and in what situations you will not be able to access your cryptocurrencies. In those instances, you will certainly need to have backup plans and funds.

Debt

Debt is crippling. It keeps us enslaved to those that we owe the debt to. Sometimes, it is necessary – mortgages, car loans, medical, student loans, credit cards, etc. No matter what kind of debt you have, try to reduce or eliminate it as fast as you possibly can.

Personally, I use the snowball method. Pay off the debt with the smallest balance. Take the monthly payment of that when paid off, and put it toward the next one – continue until all paid off. If you have any additional funds – even just $1 – to put toward that debt, use it to reduce it as quickly as possible.

When you have a limited number or no debt payments in the event of a crisis – personal, national, global, whatever – you are able to make decisions better because you aren’t as manacled by the debt you have.

As you reduce or eliminate your debt, have in the budget ways to invest to build up your savings – this is where the financial planner comes in (as noted above).

Go through your house and work on a massive “spring cleaning” of sorts, where you eliminate all the stuff that is taking up space that you no longer use or need. Sell it in a garage sale or eBay (use the money toward replacing what needs to be replaced or toward paying down the debt owed) or give away to a homeless shelter or something.

Work on reducing your expenses. You don’t need to live in a destitute manner, but what can you get rid of that you don’t need – a storage unit filled with stuff you haven’t touched in years, gym membership you never use, a subscription to something that you haven’t cancelled yet for whatever reason – take that money and put it toward something more useful.

Health and Wellness

Personally, I know I can do better in this area. Like so many, I have a pretty sedentary life. I hardly ever get in the recommended 10k steps every day. If I hit 2k it’s a lot. Eating healthy is just as difficult. When you live alone, you have no help in eating fruits and vegetables quickly. There are times I can easily ask myself: “when was the last time I ate a fruit or vegetable?” and not easily remember, but I do try. Cooking for one is a challenge for sure.

In this area, my own method is slow, consistent progress. Walking around the block, riding my bike, doing those exercise videos available on Amazon Prime. I get stuff to make a salad, which takes me at least a few days to finish on my own since it’s easier to make it as if for at least two people to share.

I am trying to go to a more plant based diet, which is a challenge given the cost, the time and that I don’t eat much to start out with. It’s healthier for sure, but I feel like I would be spending my time preparing, consuming and cleaning up more than anything else.

Essentially, the goal here is to be as healthy as possible for oneself and one’s family and friends. Plus, it can possibly reduce or eliminate the medications one must take the healthier one is. That saves you money which can be used elsewhere.

Self-Sufficient Living

One thing the COVID-19 pandemic has taught me (along with my hurricane preparations) is to be as self-sufficient as possible.

If you are able to have a garden, add in herbs and food-bearing plants. Do research on companion planting and learn all you can about how plants can be used (medicinal and for food).

You will of course need to go to the grocery store for some things – in these instances, stock up on what you can whenever you can. An extra bag of dry beans, rice, flour, and sugar over time adds up. In those cases, you won’t need to be one of the “panic buyers” we saw during the COVID-19 buying where toilet paper and yeast became the underground currencies.

Learn how to cook from scratch – how to make your own pasta, bread, etc. – since those can easily be the first things to be wiped out in a panic buying frenzy.

Learn where the nearest water source is and how to filter and sanitize water.

Depending on the situation, learn how to hunt, skin and cure meat.

There are other ways of self-sufficient living, but these will certainly get you started

Conclusion

In the post-COVID-19 world, our daily lives will not be what they were when we entered into lockdown. Societal norms and behaviors will change – some temporary, some longer, some permanent – but things will change.

I am personally watching a number of different things, which include “doomsday” or “”apocalypse” or “dystopia” type of realities – all of which can certainly be the case depending on how long the lockdown lasts, how long businesses are unable to operate, and so on. There are a number of bubbles that can set off different domino effects throughout the local, national, and global markets that could make things quite horrible. Some scenarios could make the living situation from the Great Depression look like a carnival and wishing we had it that good.

I have found that it is necessary to consider such realities in order to prepare for them. I figure that if you prepare for the worst case scenario, you are pretty much good to go.

Just because you prepare for the worst case scenario doesn’t mean that the worst case scenario will actually happen. However, you are ready to initiate the plans that you have created should such a scenario become a reality.

By reducing or eliminating debt and improving your health, you have more options available to you and more means in which to help you and your loved ones survive over the duration.

How do you see the post COVID-19 world?

(c) 2020 Disaster Survival Answers