How To Prepare For The Economic Hardship Ahead
Pain Ahead
The global economy is under immense strain. This is not merely the case of one significant problem, but rather, numerous and ongoing crises. Monetary policy is being pushed to the point whereby, not only does it fail to alleviate the pain, but actually introduces additional pain. There is no escaping the maturation of unwise decisions. Certain actions have consequences, in fact, all actions have consequences. This is the reality that is beginning to hit home. Once again, a select group of individuals has made decisions that negatively impact every human on the planet.
Unfortunately, we are unable to escape the negative repercussions of these decisions. However, we are able to adjust, so as to minimize the damage. There are three key strategies that one can utilize in order to help offset the carnage. The efficiency of these strategies will depend on how aggressively you choose to implement them.
The Side Hustle
This is something that many people are familiar with. Having to apply oneself outside of daily work responsibilities is something that many have had to do at one point or another. Fortunately, in the Crypto space, we are spoilt for choice. We can begin earning additional income without having to leave the comfort of our homes. Crypto valuations may be down, but the opportunities within the space are growing exponentially. This is busy taking place despite the economic environment.
Hive is a great example of an ecosystem that just continues to grow despite the bear market and macro backdrop. Earning opportunities abound within the ecosystem and reach beyond blogging and curation. Play2Earn and juicy interest rates on HBD are just some of the alternative opportunities on Hive. Many are also choosing to utilize alternative decentralized services such as Presearch, a monetized browser, and search engine. In short, wherever a legacy service can be replaced by a monetized version, it is!
Sacrifice A Few Pleasures
Choosing to skip one or two restaurant outings per month can help a lot, provided you allocate the amount you saved. Simply keeping it in the form of disposable income won’t help, as it will just get spent on something else. It doesn’t have to be restaurant visits, it can be any expense that is not crucial to daily living and “survival”. You may well find that many of your expenses are non-essential. This will help to lighten the burden, while simultaneously allowing you the privilege of putting money aside. Whether you choose to invest it or hold it in savings, is up to you. At the end of the day, the goal is to create a buffer that will most likely be used in time.
No New Bad Debt
Bad debt is the type of debt that most people are familiar with. This comes in the form of credit cards, clothing accounts, and the like. Any debt that is not being utilized to acquire an investment-grade asset, or additional income is bad debt. One should be looking to pay off existing debt and avoid creating new debt. This makes so much sense, considering that if you no longer need to pay a monthly repayment, you will have additional cash.
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Final Thoughts
All three of these ideas have the same outcome. Ultimately, you will have more money at your disposal. The idea is to have more than you need because tomorrow you are likely to require more. Making provision now will later prove to be a tremendous comfort. As I initially mentioned, how much you benefit depends on how aggressively you apply these strategies. Anyway, that’s me for this edition. See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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Great! 😁