Sunday, 29 March 2020

How To Make Money During This Coronavirus Outbreak

Coronavirus Outbreak

The corona is making a lot of people lose all their money. A lot of people don't have money in their savings account. How do you prepare for a recession like this? I think when it comes to preparing for a recession due to the coronavirus, you're probably going to want to look back at our article about budgeting. Back in the day, I talk about budgeting where I say;

  • 50% of income goes towards Necessities
  • 30% of income goes towards Wants
  • 20% of income goes towards Savings/Paying debt

I would probably remove once altogether right now because there's so much uncertainly giving coronavirus and how that is going to impact the unemployment rates and profitability among all businesses. So I would probably use;

Budgeting Due To Coronavirus:
  • 40-50% of income goes towards Necessities
  • 50-60% of income goes towards Savings

You want to start saving and building up that emergency fund in order to help navigate coronavirus, because at the end of the day is real, as the entire world in a frenzy, people not leaving their homes and as a result that impacts the entire global economy. The economy is driven by people going out and spending their money. Now people are no longer traveling, that's airlines are down, you get a rental car because people are not traveling to work, they're working from home. The Barbershop industry, the restaurant industry, as a result, the biggest thing right now is to start saving and building up your money.

  • Let's also figure out another way to make some types of alternative forms of supplemental income, whether that is doing hair in your house or finding a way to build a website for people in your house, any handwork you can think of doing in your house. I think everybody is going to have their own format to make extra money, but that is key. 

You want to budget better, build up that emergency fund and find a way to make some more money. I hope That helps.

Step Two

You Can Make Money In The Bear Market

  • Sectors To Potentially Invest In:
  • House Hold Cleaning
  • Healthcare
  • Digital Workforce
  • Movies/TV Streaming
  • Gaming
  • Overcapitalized Financials

There are some ways in the bear market to make money. And I think first and foremost, you should study 2008 to get an idea of how the market trades when there is a lot of overall frenzies and people panicking. You want to buy things whether it's toilet paper or Lysol, one company that has benefitted from this is Clorox. Then let's think about healthcare at the end of the day there are many companies that are working on vaccines and trying to rid the world of the coronavirus you got Pfizer, Johnson and Johson, Regeneron. Those are just some things 

Now, let's take a step back and see what's going on, you got the governments around the world saying hey, people should work from home, now what companies are going to benefit from that, you got video conferencing companies like Zoom, as well as companies like Slack. Now you ask yourself in addition to that, what are some other names?

If you are working at work or better yet if you are staying at home, what are people doing while they are home? We're not able to go to the movies, but we are probably watching movies and TV shows on Netflix and Hulu. You got kids playing video games, that's Activision blizzard, that's EA. One other thing you might want to say okay, what companies actually cheap right now? What companies are looking like a discount, that might be Google, might be Amazon, Netflix, Not only that you got some overcapitalized banks that are trading down a lot. 

Anytime there is uncertainly the market gets scared, there are so many ways to making money, you might want to short some companies. Whether that's cruise ships, airline stocks, or restaurants, it's a lot of ways to make money both on the way up as well as on the way down.

I really hope that helps

No comments:

Post a comment