2020 has been a financial rollercoaster.
Early in the year, the economy looked to be strong and vibrant with historically low unemployment record highs in the stock market.
By the end of February, fears over coronavirus started wreaking havoc on the market.
And then in March, the financial rollercoaster went off the rails. The economy locked down as stay-at-home orders were issued, businesses closed, and nearly 10 million people lost their jobs in a matter of weeks.
We saw the largest stock market crash in a single week since the 2008 recession, and Wall Street experienced its largest single-day point drop in history and the largest single-day percentage drop since Black Monday in 1987.
In the wake of this economic chaos, unprecedented stimulus bills were signed distributing cash to individuals, small businesses, and huge corporations. And the Federal Reserve went to work cutting interest rates and buying massive amounts of securities.
For the most part, “The Great Stimulus” efforts have worked to keep the economy afloat and fairly stable. And while some individuals have suffered catastrophic loss, the economy as a whole hasn’t suffered that much relative to the dramatic turns of events we saw.
At least not yet.
In fact, the stock market rebounded with all three major indexes finishing the 2nd quarter of 2020 with their best quarterly performance in more than 20 years. And 7 of the top 10 best single-day stock market gains in history were recorded during March and April of this year.
But the big question is…
Will the stability last? When the government stimulus stops, will businesses be able to recover on their own?
And how about when the extra unemployment check money stops? Will workers be able to find jobs that pay well and keep them employed?
And what will the ripple effect be — on the housing market, the jobs market, and the cost of living?
Will the economy be able to recover as the number of confirmed infections in the U.S continue to grow?
And how will the volatile Fall election influence policy and consumer behavior?
And perhaps most importantly…
In this article, we’ll share some time-tested strategies for adapting, persisting, and growing your wealth through any financial crisis.
Plus we’ll share a fantastic tool that helps you determine your own unique Money Persona, which is a key for unlocking a prosperous financial future, no matter what happens in the economy.
First, let’s start with…
While there are many industries at risk, here are 5 industries in the “danger zone.”
If you own a business — or work as an employee — in one of these areas, you will want to pay close attention.
And if you are looking for opportunities to acquire distressed businesses or assets at bargain prices, there could be opportunities for the knowledgeable person.
These will be the most likely areas to see a lot of bankruptcies, possible disruption and innovation, and potentially new leaders emerging.
#1: Agriculture & Manufacturing
The challenges for these two industries are similar.
Both have teams of people who need to work together, often in close quarters, which presents a high risk for outbreaks (and therefore shutdowns or limited productivity) like we’ve seen at meatpacking plants around the U.S.
As suppliers, they’re also heavily reliant on consumer and business demand.
Growers and packers who work with supermarkets are thriving, while other business owners reliant on contracts with restaurants, schools, or airports are struggling.
#2: Education and Large Group Events
In the world of schools and seminars, it’s all about how effectively you can adapt and move online – which is significantly easier if you run smaller events or already have infrastructure and systems for marketing and fulfilling online. With many schools opting for “online-only” sessions, homeschooling resources for parents and online alternatives have already created a new niche of opportunity.
Sporting events, concerts, and theatres, and any other business reliant on people gathering in large groups have a much tougher go.
#3: Travel, Hospitality, and Gaming
Between state laws changing based on COVID cases and many individuals being hesitant to fly or leave their country or state for an extended period of time, there is a lot of uncertainty in these industries.
You’ve probably seen a lot of “travel when you feel safe” type of ads, which is a great way to adapt, but these business owners have a long road ahead.
#4: Restaurants and Retail
“Business interruption coverage” has been found not to apply in the case of this pandemic, leaving restaurants and retail shops at the mercy of their local and state laws. Some, who are able to either serve people outside or focus on pickup/delivery are doing better than ever.
Others, who focus more on the “experience” of being in their shop are struggling and looking to find new ways to adapt.
#5: Small Business Owners
Every small business owner has their work cut out for them.
Even if you’re doing well right now, the world is changing quickly, and in order to ride out this storm and come out the other side stronger, you will need a financial tool chest that provides new strategies and opportunities when the conventional financial tools fail to give you the results you want.
Regardless of what industry you’re in, how you fare in challenging times is determined by 2 key factors: your own self-awareness, and the kind of people you surround yourself with.
That said, our first suggestion is…
#1 — Map out your own unique Financial Architecture / Wealth Blueprint.
What this means is, as a business owner or individual, it is not about handing your money over to the stock market, or putting it in a retirement plan, and hoping it works out.
It’s not about diversification, it’s about focus. And it’s not about complexity. It’s about simplification, minimizing risk, and optimizing cash flow under one unified plan.
We call this your Financial Blueprint, and we have a team of Financial and Wealth Architects who can help you identify your own blueprint and customize it to your own unique values and strengths.
Seeing how all your financial pieces fit together gives you financial clarity. But you still have to execute it. And just like a home is built in a specific order, so is your wealth blueprint.
No one builds wealth alone. You need a team to bring all the pieces of your plan to life and give you the kinds of results you desire.
You may already have many talented individual “players” on your financial team. The key is to get them to work together, and work in concert off the same blueprint.
If you don’t have an amazing team already, that’s the high-end service we provide at Wealth Factory. We have an interconnected and integrated team of financial professionals to help you implement your financial blueprint (which you can learn more about here).
#2 — Surround yourself with like-minded people.
These are people you would want in a “foxhole” with you. These people not only support you when times are good — they want you to succeed so badly that they will hold you accountable so you actually carry out your wealth architecture instead of bailing when times get tough.
They believe in your vision, and you know that you can count on them for anything.
Lastly, a key piece of your “self-awareness puzzle” is…
#3 — Knowing your Money Persona.
Understanding how you deal with money, especially in times of financial stress, is critical to laying down a financial gameplan that will work for you.
Knowing your unique Money Persona gives you that knowledge and gameplan so you can be more confident with your finances and reach Economic Independence faster.
Well, none of us are born with a natural genius for money or finances. Even our founder and Chief Wealth Architect, Garrett Gunderson, admits he was a miserable money miser early in his career.
And even though he was making decent money right out of college, it took him years of struggle and many painful lessons to figure out how to turn that financial success into Economic Independence.
The great news is, you can avoid most of the costly mistakes Garrett made just by learning your unique Money Persona now…
And then by learning how to fully utilize your Money Persona to get the things you want in life with less friction so you can reach Economic Independence as quickly as possible.
Build the life you love,
The Builders at Wealth Factory
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