7 Tips to Deal with The Economic Recession

 

The director of Patsy, Freddy Vega stressed that in the face of this contingency, fatalistic visions must be avoided. Rather, you need to take action, prepare, and build your patience to stay in the market using the following tips.

1. Create a budget today

Consider your rent, taxes, food, entertainment, etc., and check your expenses against your income. If you don't know how, you can access this Plats personal finance course whose first five classes are freely accessible.

2. Calculate your net worth

This is all the money you have: your bank account, a shirt, a watch, the sofa, etc. It is important to know it, because in the worst moments you will know how far you can go before ending in zeros.

3. Renegotiate your debts

Did you know that all the debts you have can be renegotiated? Including your credit cards, your bank, car or mortgage credit. However, many are ashamed to renegotiate them. "It's silly, don't do it, call the bank and renegotiate!"

4. Collect your loans

The longer you go without getting paid, the less likely it is that you will get paid because everyone would be in the same crisis.

5. Pay attention to government measures

In a crisis, certain taxes are likely to be suspended or pensions, subsidies or incentives are provided for people who fall into unemployment or for certain industries. Pay attention to them and take advantage of those subsidies or incentives that governments create in times of crisis.

6. Take into account that you might start over from scratch

It is important to have a vision of where the world is going to prepare and perhaps have another career. It is the year 2020, it is the future, you can, in 3 to 6 months, dedicating yourself in a focused way, learn a new career, there are no excuses.

7. Write a theory of where the world will be in 2021

Write what you think will happen to you, your friends, your family and your job and from there create a plan, do not let it take you by surprise.

Finally, Freddy Vega advised entrepreneurs and businessmen some extra measures:

● The first thing is to get paid: “This is the year you become profitable or you become an employee; you will not be able to have a company if you don't get paid, if you don't have a cash flow”.

● Raise what you can in investment assuming that you will not be able to later: "Plan 24 months at 50% in sales in the best of cases: it is important to have a plan for the company to survive, and if you survive, you will be one of the most powerful”. The example is in those that were born during a crisis, such as Airbnb, Google, Uber, Facebook and Amazon.

● Kill the experiments: "If you have experiments that you are running, such as unproven new business models, it is time to kill them and focus exclusively on what generates income."

● Have a theory of which business models are going to live and which are going to die: This makes it much easier for you to invest your time and money in the right models because, according to Vega, “if a crisis looms in the middle of the coronavirus, colorings, tourism, the luxury industry, entertainment would be affected; etc.".

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