If you are having difficulties navigating through this crisis, you are not alone. Countless others are facing similar challenges, especially when it comes to maintaining a healthy cashflow and making sure that they are protected against financial risks.
Many people resort to cutting expenses and liquidating their investments. Others go for new sources of income and robust portfolios. What is the best way to make smart investments in this difficult time? These next several tips and tricks will help you get started right away.
Invest in Yourself
If you have a career planned out and you think it may be affected by the crisis, now is the perfect time to invest in yourself. There are many ways to improve as a professional, including through online courses, short training programs, and certifications. Even better, these programs are vastly available and don’t cost a fortune.
You can, for example, get a master’s degree in business analytics from top names such as Aston University. The degree can then be used to push your career forward. (More information about the degree can be found on this page).By taking the course today, you are setting yourself up for success in the future. When you earn a degree, the market will be ready for professionals with more skills.
An MSc in Business Analytics is a good investment when you consider the return you can get from the degree. Everything is data-driven, so the demand for business analytics experts is higher than ever. You can expect a higher annual salary as well as better compensation in general.
Another way to invest in yourself is by picking up specific skills. This where platforms like Udemy and Coursera are perfect. These platforms offer short courses that can be completed in a matter of hours or days. They also center around specific skills, plus the catalogue of courses is relatively extensive. Some of the courses are even free!
Build Revenue Streams
Cashflow is everything in an economy filled with uncertainties, so maintaining a healthy cashflow needs to be your top priority. You can consider a shift towards revenue-generating investments, especially those with better risk profiles and sustainability factor. The goal is to build new revenue streams that can sustain you in the long run.
Investing in a rental property is a good example. When you already have properties in strategic areas, converting them into rental properties will help generate the income you need to maintain a comfortable life. You can also rent out spare rooms, storage space, garages to tenants. Since finding tenants is easy, the income will start coming in almost immediately.
Other revenue streams such as interest and return from real businesses are just as interesting to consider. Instead of investing in shares, for example, you should consider offering support to local businesses in the form of a direct investment or a short-term loan. There are brokers and companies that channel this type of investment too.
As an added bonus, you can invest in your own business. Yes, it may not seem like a good time to start something new, but there are products and services that go unaffected by the crisis (or even become more needed by customers) and you can still earn revenue from a business in the right sector. Now is the time to be bold and explore excellent business ideas.
Maintain a Strong Fundamental
Making shifts towards revenue-generating investments doesn’t have to mean changing your entire risk profile. You don’t have to take on more risks just to be able to get cash in. In fact, you shouldn’t. As long as you have enough to maintain a healthy cash flow, you can return to the fundamentals of your portfolio right away.
For example, allocating 30% of your income for investments is still a good idea, but only if the rest of your income is enough to cover other posts. If your income is affected by the crisis, that portion needs to be reduced while you work on generating additional revenue. When you have regained control over your personal finance, the ratio can be increased again.
A strong fundamental is good for long-term sustainability. Investing in companies that are strong enough to withstand the crisis will reap long-term gains. The same is true for shares or bonds that are tied to strong instruments such as gold and silver. Even long-term bonds from governments become interesting to investors who seek to strengthen their fundamentals.
The opportunities are there. Regardless of the amount that you are investing, there are instruments designed to help you secure steady long-term growth and occasional direct returns. These are the instruments that safeguard your future far beyond the crisis we are facing right now. These are also the instruments that allow you to be conservative with your investments.
Make Positive Changes
Last but certainly not least, make sure you still make positive changes to account for market changes. Cutting expenses is still good for maintaining a healthy cashflow. Sticking to basic needs, saving money on things such as maintenance and entertainment, and then putting the money towards robust investments is also recommended.
Plan ahead and learn to spot market changes. The market may be declining right now, but it will bounce back; in fact, it does so several times a day. There are plenty of opportunities to make money if you change the way you invest slightly. With the fundamentals covered, you can be more agile and take advantage of short-term positions.
Positive change must also affect the way you look at investments and opportunities. There will be life after the crisis and focusing on what we face right now – solely on the problems we have – is not necessarily the right way to go. Plan ahead, make sure you anticipate future changes, and you will be making smart investment decisions in no time.
With these tips in mind, surviving the crisis while improving your portfolio is easy to do. You have what it takes to make smart investment decisions, develop yourself as an investor, and stay ahead of the market in this difficult time.