It is without a doubt these are difficult days for most people and businesses. The bad policies of the government coupled with external factors have made things very difficult for households. It is quite unfortunate employers are declaring redundancies each day without knowing who shall be the next victim.
Yet history tells us it is such moments that separate the giants of history from the rest of the pack. Martin Luther King Jr. said ‘The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy”.
History is replete with many people who have discovered their talents or found their financial breakthroughs in times of financial or economic turmoil. If you came to think about it, how many businesses were born out of the Corona health pandemic and the consequent economic crisis? As some people resigned to fate, there was a minority who rose up to the challenge, aligned with the business opportunities that were evolving with the crisis and made millions.
This page that faithfully brings you this educating article was born out of the Corona crisis around May 2020. Hopefully, a book will be on the shelves of bookshops and on your digital platforms by the end year or the beginning of next year out of the same.
The simple point I’m trying to pass is that tough times separate the haves and the have-nots when it comes to money. You cannot desire money and wealth and expect things to just flow easily accompanied by money into your bank account. As I have consistently discussed here if money itself is a measure of value, how can it be valueless or cheaply available?
Here is what is going on within the economy:
- Government securities are offering the highest returns at the moment – the interest rates the government is giving on the money it is borrowing currently were last seen around 2011. It has been over a decade since government bills and bonds paid over 16% in interest. Those with savings for investments are smiling all the way to the bank while the rest of us a crying there is no money in the economy. It is all about which side you are standing on at this point in time. Who knows when we shall ever see such high interest rates & returns on investment?
- Interest on loans for borrowers is rising to rates last seen in over a decade – while those with savings are enjoying good opportunities for investment, those with existing loans or looking for money to borrow are finding it rough in the market due to the high cost of money, if you get a lender willing to loan you. What a contradiction! Yet, this is the reality in the world of money -as some minority few smile all the way to the bank, the majority are crying in debt or locked out completely from the financial markets. This matters a lot as to which side of this equation you stand on;
- There are many foreclosures of prime properties – the number of people being auctioned has really increased in the past few days. As more people default on their loans due to the hard economic times -more properties will be on offer from auctioneers. However painful it is for those losing their homes and other properties, those with spare cash are able to buy these properties at a bargain. Unfortunately, that is how a few win the race for money while a majority of the people suffer all their lives -it is all about self-preservation and business;
- The best strategy in these difficult times is to stay calm and keep the course – for the majority of people who belong to the lower order on matters of money, they rush to liquidate and disarrange their finances on the first sign of trouble. The moment you rush to adjust your finances simply because things have gotten tuff is always almost a bad decision. Disposal of assets on quickfire sale is a guaranteed loss to the value of your assets, while holding on allows you to keep its value or gain as the economy turns around; and
- Sometimes the best strategy in bad times is just to do nothing – time ultimately turns around every situation, whether you did something or not. That is why even the darkest night must give way to a new bright day as the day gives way to the next night. Such is life! This requires you to set your sails for both night and day for both are part of your lot for as long as you live. But as time passes on, the much you keep from each passing day will eventually turn into a fortune; on the contra, that which you waste in a moment of panic will surely turn you into a pauper.
Either choice is available for all quid pro quo: the choices are yours to make.