One of the greatest fears people had in the past year – which is now coming true – was that the pandemic will roll over into the new year. Sadly, in many nations, a new strain of coronavirus is already noticeable. While there’s a vaccine already, it’s quite unsure how many people can get it within the fastest period.
As it stands, several countries are putting up new lockdown measures. It may not be wrong to say people may still have to live with the virus for a few more months. Now, seeing what the pandemic did to the finances of many in the past year, it’s safer to have a plan for what lies ahead.
Jacques Poujade was one of the first business persons that gave quality advice on how to stay financially safe during the heat of the pandemic. Apparently, his work isn’t done yet. He recently shared all-new financial advice for everyone to leverage in 2021.
Poujade considers that investments and spending will be affected by the continuation of the pandemic into the new year. He also feels that the circumstance makes it harder for most people to plan how they hope to spend money. Fortunately, Poujade addresses solutions to these problems.
1. Diversify Income
First off, Jacques Poujade advises that most people should diversify their sources of income. At the level in which the pandemic took the world, only jobs that were amenable to remote working lifestyles were viable. It’s best for blue-collar workers to get remote jobs that will pay, just in case another lockdown strikes your city.
2. Budget and Keep Emergency Funds
He also advises budgeting and emergency funds. While the future is always uncertain, it’s always a good idea to set a spending plan and stick to it.
Emergency funds allow you to get money out for unforeseen circumstances. While Jacques Poujade generally advises 10%, he notes that you can be flexible and adjust to suit your income.
If there’s a major lesson in Poujade’s financial advice, it is his tip on staying clear off debts. The ease that comes with personal loans and credit card advances can be tempting. But it’s always advisable to live within your means without accumulating debt.
Plus, you get to keep your credit profile in shape for when a very important need arises and you may want to get some credit.
4. Invest Profitably
There’s also a section for folks who are well off. Poujade advises the best investment portfolios for 2021. He believes the real estate industry is off to a bright start in 2021. He had earlier noted in a November 2020 interview that real estate investment is quite secure even in periods that appear uncertain.
With most people wanting to explore luxury homes and others looking to explore warehouse spaces to meet people with essential products, there’s much yield in real estate. Other investment opportunities come from bonds and dividend stock funds.
Finally, this period isn’t coming easy for anyone. But we all know people on the lower economic ladder bear the brunt more than others.
With this in mind, Jacques Poujade advises most people to seek relief from financial institutions or landlords. And he advises everyone to be safe from scammers who are looking to cash in on people’s ignorance and the peculiar circumstances.