Hi Friends, I hope all is well with everyone! Life has been crazy over the past few years with everyone. All of us either experienced heartaches, celebrations, financial stress, financial prosperity, happy moments, or sad moments. Some of us even experienced all the above. We went from shutting down everything and high unemployment to now most of the global economies started putting COVID on the back burner and started to not only reopen but to start experiencing prosperity again. Now, again, things have changed. There’s a war in Ukraine that is putting upward pressure on oil prices and other commodities, which is driving up gas prices and other goods that both Ukraine and Russia export. Inflation is running rampant here in not only the United States but also all around the world, which is causing price increases of everyday goods and services. Not only that, high interest rates are pricing out first time homebuyers and people who want to start businesses but need loans. Pandemic, recession, war, and who knows what else is next. Today. I am going to go over what I realized and some helpful top financial tips that I have learned and have been doing for the world we live in! So buckle up, this one is going to be a goodie!!
The phrase “Cash is King” or as the great Randy Moss put it “Straight Cash Homie” has mixed reviews and rightfully so. On one hand, cash is eaten up by inflation and since inflation has been the hottest it has been in decades, a good chunk is getting eaten up and gradually going down. On the other hand, cash on hand is good for emergency purposes, a buffer, and its for the investment opportunities that are too good to pass up. Having the right balance is key, so that you are growing your nest egg instead of it going down and having cash for the everyday things in life. The problem, and I know you are going to hate this answer, is that there is no right answer and its case by case for each family and person. The best rule of thumb is to budget and invest accordingly my friends!
So for the past few years, I have been hammering that investing is key, its one of the top financial tips, and that diversifying is key in investing – blah blah blah we know this Mr. Nahas. Well friends, inflation helped me realize that even more. Inflation is running about 8% give or take. If the average stock market returns are 10% before inflation, there’s only a small gain. Real estate is the counter measure to that, as inflation increases, so does the value of real estate. The real estate market shot up when the pandemic hit, and remote work became a thing of the future. Housing prices soared. Where I live, my friend bought his home for $280,000 and one year late its worth almost $400,000. There are a lot of different types of assets you can invest in that are not real estate or stocks. There are bonds, tangible art, crypto, NFTs, wine, existing business, and so much more. They key is to make yourself recession proof, so that way if the stock market is impacted, you still have other assets growing.
I’ve mentioned this in the previous tip, but I am mainly going to talk about income instead of investing. As you know, money can grow on trees! The pandemic made me realize that we need to have more than one income in order to be really financially secured. I got laid off for about 6 months and although I was getting unemployment, living with my parents, and flipped a house, it really hurt me financially and I lost almost $20,000 in income that I could have invested. Since I mainly had one income, that hurt me. If I had more than one or two sources of income, I wouldn’t be as worried, and I would sleep knowing I had security. There are so many ways to earn money today, I am still in the beginning stages, but I added another source of income – which is covered calls. I can go over this one day if everyone would like me to!
In world that has the ability to bring about constant despair, we need to find happiness in every part of it and in anyway we can. Housing prices soaring is stopping people from buying their first house, we were on lockdown and couldn’t live our life, people lost loved ones, jobs, mental sanity, people losing their livelihoods in Ukraine and all around the world and more. Although sometimes money can buy happiness, we need to find happiness in anyway and be grateful for what we have. I got a dog in January 2021, and he really brightened my day up and fast forward today, I am in a happy relationship with someone I truly love and am happy with (yes Mr. Nahas has a heart and is a hopeless romantic). In a world where all of us are getting beaten down, we need to find those people and make those memories that truly make us happy.
So there you have it folks, I have shared some of my top financial tips that I have learned throughout the pandemic, inflation, and this uncertain time in the world. Remember, cut down on debt, invest, and be happy friends!