By Leroy Ferrao- Crisis Coach
A famous quote states ” Never waste the learning of the crisis”. It is true, as a time of crisis can teach us more than a time of boon.
We must document the key learnings for future reference to prepare us for the biggest crisis in the future.
Here are five points of the mega- pandemic COVID-19.
#1.Invest in your health to survive future pandemics.
The learning of the COVID-19 pandemic is the importance of building one’s health to withstand future pandemics. We have had five epidemics/pandemics SARS, SWINE FLU, MERS, EBOLA and COVID-19. This is an average of 4 pandemics from year 2000. Predicting the future with this data, we can expect another pandemic in the year 2023-24.
Invest in organic food and time for cooking.
Firstly, during the current pandemic, we cooked and ate from home. We sourced our fruits and vegetables from nearby farmers. We need to take great pains to continue the best practice we have learned as our health depends on it.
Invest time for your exercise.
Secondly, since the gyms closed down, we had to exercise from our home to keep fit. It is expensive and time-consuming to hit the gyms. We can buy the exercise equipment or just brisk walk for 30 minutes daily in the morning sunlight.
Invest in immunity boosters and Covid-19 safety gears.
Thirdly, we took immunity boosters, vitamin and mineral supplementation. Moreover, we practised hot water therapy, steam inhalation and did salt water gargling as recommended by our family physician. We have to continue these practices throughout our life to safeguard our health from epidemics or pandemics.
Invest time for sleep.
Fourthly, the lockdown disrupted our sleep. We need to sleep well for about 7-8 hours at night either by doing exercise in the evening or avoiding to take a nap or sleep in the afternoon. If we still have difficulty to sleep well, it would be prudent to consult a sleep specialist. You can invest in a mattress and a dark room with soundproof windows. Use an air cooler rather than an AC.
Remain Positive.
Finally, remain positive in the face of uncertainty and that will keep us going on for a long time. At the beginning of the pandemic, it was scary and uncertain. Yet as we got in the dark tunnel, we could keep moving and adjusting our life. Health is our greatest asset in times of crisis.
#2. Build cash reserves, cash flows and attack debt to navigate pandemics.
Cash reserves are the new life insurance.
In times of crisis like the COVID-19 pandemic, cash and cash flows are kings. One of the biggest takeaways of this crisis. Only those who had the resources were able to survive the lockdowns. People who hadn’t planned for contingencies paid a heavy price. Individuals with heavy debt were able to use the moratorium on loan repayments. However, in the process they had to carry a heavy load on their heads which only made their lives more stressful.
Experts had been advising people to build cash reserves of 3-6 months, but, after this crisis, they are calling on people to have at least two years of expenses in emergency reserves. Finally, the wisdom to stay out of debt was evident, and many used their cash flows to build their cash reserves and sail through the initial crisis of strict lockdowns.
How do you build cash reserves and cash flows?
During the lockdown, we learned to live on less and manage our budget. We bought only essential things and paid for our utilities. Moreover, we avoided eating out, focused on our wants and, opted for repairing and downsizing to save money. From now, we need to adopt the same lifestyle. We do not need much to live. If we spend for our basic needs, then we can use the balance cash to build our bank reserves.
Next, try to create a new cash flow income independent of your time. You may need to get into the online business and create an automated system that will take care of your business and free you time to pursue other productive activities.
What about debt repayment?
Sell the assets you own and become debt free immediately. You can always buy those assets in the future if you can afford it. Clear the high-interest debt first and then attack the low-interest debt but do it immediately. Make a firm decision never to go into debt again, and you will be better prepared to deal with the next crisis.
#3. Stockpiling of food provisions for unforeseen crisis.
Store non-perishable food for up to one year.
During the shutdowns, we learned the importance of storing non-perishable food as supply can run out in a moment. We learned to stock rice, lentils, nuts, cereals, dried beans, vegetable oil, peanut butter and other non-perishable food for up to 6 months.
Build contacts with farmers and traders.
Another noteworthy enlightenment we received was the importance of having contacts with local farmers and traders. These contacts could supply us fruits and vegetables and that proved to be crucial as we could continue eating healthy food to boost our immunity against the pandemic.
Migrate to areas near farms for access to food.
Residing in a strategic location proved a huge advantage during shutdowns as we could source food from nearby farmers and get our supply. We had difficulty obtaining fruits and vegetables during the pandemic and, now is the time to migrate to areas which will connect us to the farms. During lockdowns survival is of paramount importance and residing close to the farms will ensure that we eat well.
Get familiar with online shopping.
Online shopping also proved to be a boon to avoid unnecessary contact with people as we could get our groceries delivered at our homes through a contact-less system. Online shopping is forecasted to grow fast as more and more people try to save their time, fuel and money commuting to the supermarket as better deals are available online.
Build relationships and connections.
Our neighbours can prove to be a huge asset during distressing times. I remember one of our neighbours who worked for a huge supermarket and after work would bring all our grocery items in his sedan.
During the strict lockdown, there were long lines at the grocery shops and, lack of availability of provisions. Furthermore, it was risky to go out because of the curfew and police hitting people who were out on the road. It was a blessing to have good neighbours who had contacts with the farmers, traders and also were employees of supermarkets.
Food sustains life and more important than anything else is the ability not only to finance the food provisions but also be able to access it during the lockdowns.
Lastly, the government also made available food supplies for its people and, only those who had the necessary documentation could avail of it. The need to complete all our procedures to get government help is another learning that needs completing before shutdowns, disasters and crisis. Whether we avail it now or not, it pays to be up to date with government schemes as in the future, we may require it.
#4. Invest in new technology and self- education to master any crisis.
Invest in new technology and keep upgrading.
One investment that paid a dividend during the shutdown was in new technology. Individuals who bought a good laptop, WIFI connection, mobiles and printers, could convert their homes into remote working offices.
My recommendation now is to invest in new technology and online resources as it can give you a higher return than your deposits in the banks. Besides, it can keep you ahead in your cash flow and income during an enormous crisis.
Invest in self-education.
If you as a person grow by 20% in skill set every year, you are going to be twice as valuable to the marketplace in less than four years. Successful people compound their value and, they invest themselves to the point where it seems crazy to everyone outside.
Invest your time in reading.
Warren Buffett reads 100 pages every day considering he is 90 years old right now since he is already one of the wealthiest people in the world. He has been doing it since he was ten. It is all an investment in his decision-making process. Warren Buffett has an incredible judgment and, that is why people trust him with their money. He has compounded his understanding of the market of business.
Improve your decision making ability.
You begin to compound yourself actively, and it is a matter of time until you realize that your decision-making ability is improving and this multiplies that speed at which you grow in life. One wise decision that can take you up in life and during a crisis like COVID-19 is to invest in yourself. It is something no one can take from you and what is better than to see your right decisions assist you navigating the troubled waters of crisis.
I encourage you to take online courses that you can do in your spare time, upskill yourself and even hire a coach to accelerate your progress in your life.
#5.Future proof yourself by the use of video conference and cloud services during crisis.
Invest in video conference tools and cloud services to cut down on travel.
The use of video conference tools and cloud services have made it possible to communicate virtually for online meetings, events and remote working during the COVID-19 pandemic to avoid infection. Majority of the people had to learn and use these tools. Travel is not only expensive, but it is also very time-consuming.
Travel is optional.
Hence, remote working has become a norm and, this calls for reverse migration. I strongly encourage my readers to move back to their native places and out of the big cities accepting a pay cut as it is not only healthy but safe. Furthermore, residing in the villages with huge farmlands will also give you access to organic fruits, vegetables and clean air. The result will be good health and immunity against the virus. Lastly, you will also be able to save money and build your reserves to withstand another crisis in the future.
In conclusion,
A crisis can teach you some lessons in life that can equip you to prevent or handle the next pandemic better and wiser.
To summarize, the key to effectively prepare for the next crisis is to…
- Invest in health to build immunity against future pandemics.
- Build cash reserves, cash flows and remain debt-free to future proof against financial shocks.
- Store food provisions for a long time and ensure that even in times of future crisis, you will have access to food farms or traders who can supply you at your home.
- Invest in technology and self-education to keep your work or business functioning even during a crisis like COVID-19.
- Use of cloud services and video conferencing tools to continue remote working and virtually communicating with your stakeholders.
We need to identify our weak areas now and convert them into our strengths.We can prepare for the next crisis using the key learnings of COVID-19 pandemic and bulletproof our future.
What did you learn from the COVID-19 Pandemic that you can use for the next crisis and battle proof yourself? Write to me in the comments.
What did you learn that you can use for the next crisis and battle proof yourself?
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