Recession Perspective

Current data tells us that the economy is in a steep contraction due to the coronavirus. How long it will last is unknown. So how can we protect ourselves when we can’t predict the future?

We can take a lesson from some of the most successful companies in the world. We take a look at what might happen, think through how it could affect us, and create contingency plans.

Here’s how:

One: Sit down and put all your concerns out on the table. If you have a spouse or partner, include them, too. It might sound counter-intuitive, but one of the best ways to ease your mind about uncertainty is to build “what-if” scenarios.

Ask yourself:

What if business dries up?

What if I lose my job?

What if this drags into next year?

Two: Work through each scenario and think it all the way through. Ask yourself: how would my life change if this happened? What would we need to do to adapt? By walking through those scenarios, you’ll be taking control of the uncertainty and giving yourself a playbook.

Three: Write down your action steps just like the pros do. In the future, if one of your contingencies happens, you’ll know what to do. By the way, feel free to share your contingency plans with me. I would like to see what your concerns are and offer my help any way possible.

It’s normal to worry about an unknown future. But we’ve been here before. 9/11, the Great Recession, and now the Pandemic of 2020.

Each one has tested us. But we’re still here.

I wish I had a crystal ball so I could tell you what comes next. But I don’t.

So I focus on what I can control. My goals, my mental state, and my behavior.

And I create my contingency plans for an uncertain future.

I'm happy to help you with yours.

Author: Ivanhoe Sánchez Financial Professional Founder & CEO Outright Financial Strategies