By Christopher Cervantes, RFP

We only have less than four months before this historic year ends. While many are thinking of how to survive this year, some are also looking for opportunities to make sure it would somehow yield significant results for them.

It has been more than six months since the coronavirus disease 2019 (Covid-19) crisis started. The worst part of it does not offer relief. Millions of people worldwide are still suffering from the pandemic; the younger generation, in particular, is in an incredibly tough spot. For millennials, the crisis is perhaps the first time they found themselves in a financial crisis. Many of them likely lost their jobs, experienced a salary reduction, lost a significant amount of money in their investment portfolio or saw the devastating effect of paying hospital bills without any insurance coverage to aid them.

Since millennials have accumulated considerably less money than Generation X-ers or Baby Boomers, they will be significantly affected by this crisis. But it does not mean they can’t do anything to ensure their survival.

Majority of my clients belong to Generation Y or early Generation Z. We spent the last six months visiting their financial plans and making sure their financial action plans are grounded on their respective realities. We covered all possible scenarios: What if their income is reduced to half of what they are currently earning? What if they lose their jobs?

Would they execute their plan of buying a house or car that was supposed to happen this year?

Yes, they are also afraid. Some are even frustrated. It’s normal to be anxious, especially if you don’t know what lies at the end of the pandemic. But I am telling you: there is a vast difference between the people following a financial plan and those who rely on what their minds tell them daily. People who ask for financial advice now with no clear plan before the pandemic are those most worried about their future.

Whether you are afraid or feeling just okay at this time, being prudent with your money and wise with your decision-making are crucial in ensuring that your 2020 would still be one of your best years. Here are a few things you may consider in developing your strategies:

– Solve one problem at a time. Some suggest you solve the most pressing problem first. But we need to understand that some people tend to avoid that. For me, if possible, start with a simple problem, if only to score small wins.

– In budgeting, carefully do the math. No matter how careful you are in calculating your budget, it’s worthless if your income is not enough to cover all your expenses. So in budgeting, the first task is to cut back on your expenses by least 30 to 40 percent of your pre-Covid-19 budget. Remember, we are in a crisis, so don’t act as if you are strolling in the park. You have to save as much as you can before the proverbial fire consumes everything. Even if your income is not affected by the pandemic, cutting back that much would be smart. Now is the time to live below your means, even if you have all of them.

We all heard of the you-only-live-once mentality, but this is a big slap to the reality that crises do exist, so we need to be prepared not only for what is in the moment, but also for what could happen in the future. Now, more than ever, young people must realize the importance of setting aside three to six months’ worth of funds, just in case something comes up.

– Make an inventory of all your things. This is important if you don’t have an emergency fund and are suddenly in great need of it. In listing your possessions, divide them into two columns. On one column, list the things you cannot part with, no matter what; the other, the things you are willing to let go if the price is right. For example, if you are in need right now, consider selling your second car, but think carefully before having your wedding ring pawned.

– Think of protecting yourself and your family. Many Filipinos are now realizing the importance of having the right amount of life and medical insurance nowadays. If you haven’t done that yet, consider getting term insurance or content to fit your current budget. If you are currently paying for your insurance, please do prioritize it over your other amortizations.

These are all general thoughts and ideas. But if you want not just survive the current crisis, but thrive in it, consider talking to a coach or financial planner to ensure that you can still maximize the remaining months of the year. That’s what I tell people under my executive coaching program. Be proactive on how you want to design not only your present, but also your future.