I haven't been online much in the past few days, and believe me, I had my reasons for it. But in the end, I get always pulled back to Hive. And I always listen to the call and come back. After all, blogging is not only fun but also a great way to organize your chaotic thoughts. And sometimes it's also a way to put your worries into words. Because worrying is something I'm pretty good at. Sometimes a bit too good and I no longer see the solutions that are always there. So let me start by trying to organize my thoughts.
We live in uncertain times. You really can't get around that anymore. We fall straight from one crisis into another. One is not yet fully resolved or the next is in full swing. What naturally comes up in these uncertain times is that you also want to ensure that your assets are safe in these uncertain times. Perhaps now even more than usual, after all, in these times we are pushed all the harder with our noses at the facts. Your money ability is important. Normally money can already make a difference between living and surviving, but that meaning can be taken very literally in some situations, unfortunately. And that brings me to another thought. Because how do you handle your money smartly these days? It is certainly not easy, a lot of research is required, but ... there are ALWAYS possibilities.
The last few days I've been reading a lot, and actually, I came up with the same thing every time. The best things to do when governments print money, and inflation rises to sky-high levels.
But in addition to investing, your basis must also be good. And to have a good foundation you have to think of the following things.
1 - Pay off debts
Do you still have debts? Pay them off! It could well be that you lose your job or that you as an entrepreneur have to endure setbacks and then it is nice that you can get by on a relatively small budget.
2 - Build emergency budget
Sometimes things break in and around the house or you have received a large bill from the car garage. Then it is good to have money on hand. This emergency budget, say €1,000, is then only intended for emergencies, which gives a feeling of freedom.
3 - Stick to your budget
Where it often goes wrong is that people adopt the lifestyle of a wealthy person, while they earn minimally. This makes you live above your power and that is not good for your wallet. Especially in economically exciting times, it is essential that you have sufficient resources to pay for your basic needs, without having to worry about it.
4 - Focus on the long term
As Ray Dalio says, you can invest 'excess' capital in certain assets. In difficult times, these will just dive 30 to 40% into the depth, making it really a matter of patience. Choose the long term over the short term because you don't want to jeopardize your results for later.
5 - Educate yourself
Make sure you keep developing your skills. In difficult times you can at least continue to generate income. In addition, it is good to educate yourself financially, so that you know where your opportunities lie.
There will always be peaks and troughs in the economy. The only question is how you deal with it yourself. We have the opportunity to prepare, we have the opportunity to invest in knowledge and hopefully a future,
