If studying back in the past, we will find that the economic crisis often occurs repeatedly in a circular cycle. One of the major economic crises that originated in Thailand is the Tom Yam Kung crisis in 1997. After that, it will be the US Subprime Crisis or Hamburger Crisis, which occurred in 2008, also known as the Hamburger Crisis because of the cause of the crisis. Occurred in the United States. When viewed from the year of crisis Allowing us to predict that every 10 years, there may be an economic crisis.

The new round of economic crises began to show in late 2018, due to the trade war between China and the United States. But economic analysts around the world still think that it should not cause an economic recession. Because in the end, China and the United States have to turn to trade negotiations Which began the first phase of negotiations at the end of 2019

However, the emerging disease, or Covid-19, originated in China. And a severe epidemic around the world as of 2020, affecting worldwide And is the main reason that causes the economic recession The result of financial liberalization As well as free travel of people Causing the crisis to no longer be a crisis in one country But will develop into a crisis for the whole world That means that we have entered a higher volatile world. Although not willing

Then what should we do? How do we manage money, manage our minds in this crisis?

Good financial planning and establishing yourself not to be careless Will be a way for us to survive in every crisis, in fact, financial planning Should start doing it as soon as possible If planning from the first day that works, it will be even better. We will have good immunity regardless of the situation. However, in this article, there are suggestions for financial management in times of crisis.

1. ‘Cash is the King!’

Liquidity is very important. According to financial planning principles, We should have liquidity at least 3-6 times the monthly cost. Which causes if unexpected events occur or were laid off immediately. We will be able to stay for another 3 - 6 months. But from this incident, It is not possible to estimate how long the effects of the disease will last. Liquidity 3 - 6 months that we have prepared may not be enough. We should therefore have other backup plans too. To do this step, we need to gather cash and cash equivalents. (Anything that can be easily converted into cash, such as fixed deposits, money market funds Or may include gold Accessories) all that is how much Then comes to compare with our monthly expenses To consider that if we really lack the income How many months can we survive?

2. Expense analysis

You have to start collecting all expenses. And see what is the necessary expense What is the extravagant cost To cut all extravagant expenses. In addition, if you have debts Which began to feel that it may not be able to pay You must contact the financial institution that you owe. To see what measures are available to help or can alleviate the situation Which now many The bank has issued measures to help the bank's debtors. You must contact your bank immediately. How important is the reduction in expenses? Important that if you can reduce expenses Will allow you to use your liquidity for longer Allowing you to breathe in the throat and have time to get a foothold to find the next best solution.

3. Health insurance is very important

If in need of money and unable to pay insurance premiums At least I want you to grind your health insurance premiums. Or have to review what medical benefits you have, social security, gold card? Must check privileges immediately Because otherwise If getting sick And not having medical benefits You must use your savings to pay for the treatment. Will greatly increase your savings.

4. Find additional income

This may be done by Anything that exists, such as clothes, brand-name bags If you can sell it and turn it into cash, sell it. (For those who know they don't have enough liquidity), in addition, consider What is our expertise? That can turn that expertise into gold or try to look around that Now, most people are worried about what they are afraid of what they want and then we can find products or services. If you can, you will have a way to make a new income. Don't forget that every crisis has a hidden opportunity, look for it and you will get through it.

5. What to do with current investment portfolios

Must go back and review the liquidity And their own expenses If he thinks that liquidity is sufficient to overcome this crisis And we don't need to use this lump sum (Must also review what our initial investment goals are How long do we have to invest? And how much risk we can take) all of this we have to consider ourselves Because of the necessary goals, investment style And the ability to take risks is personal, for example, even if we have enough liquidity to overcome this crisis But we are not good when seeing heavy stocks And not happy in investing at this time You may need to adjust your portfolio by reducing your investment in risky assets. May have some losses, but still, sleep well but if you consider that the liquidity is not enough Then it may be necessary to sell the investment Selling a loss is also necessary to sell. Because in this situation there is nothing more important than liquidity Liquid is like a large vein. If the aorta is absent Then you stop bleeding and you may die. The most important thing is You must survive. As long as we live We can always start again.

6.Managing the mind in times of crisis

Do not consume too much negative information. Set the duration of the message appropriately Find a hobby to do In which doing a loving hobby will make us happy And especially if you are able to convert your beloved hobby into an income Will be many times better Take the time to be anxious to find new ways to better each other. Do not forget to maintain good health. By exercise Eat good and healthy food. Get enough sleep and not stress because good encouragement and consciousness are very important. Nothing good forever and there is nothing bad forever. Every 10 years, about a serious crisis, it is a test that will make us stronger and grow even more. Which, if we have good physical, mental, and financial health Regardless of how serious the crisis is We will definitely pass it.

By :  Niphan Phunsathiensup  CFP® Independent financial planners Writers and speakers