The Perfect Storm
According to my brother, we are entering the real life Walking Dead, are you ready?
There is a lot going on in society right now. We have the Coronavirus, the markets are down and oil and gas is taking a hit. I hope you stocked up on toilet paper, because the stores are out. "What is happening" seems to be the phrase I have used a lot this month. It appears things are only going to get crazier. While most of us are out blowing our food budget, again, due to stocking up our pantries in case the world collapses, there are serious events happening in people's live right now.
People in the oil and gas industry are losing their jobs, the markets are down which is more job loss, and travel is down due to the markets and the Coronavirus. And while this time in our lives is pretty extreme and it all seems to be happening at once, this is why you save up your emergency fund. Now if we only knew we needed a toilet paper emergency supply as well.
Let's break this down.
If you are in the oil and gas industry and are in a position that is very unique to the oil and gas industry, then you know better than anyone that an emergency fund should be a requirement. Oil and gas is very volatile and we really cannot predict when these low prices will end. And while I have read articles and blogs about how the prices could be back up by the end of 2020, realistically, they have no idea. Just like your financial adviser has no idea when the market will improve. Is it nice to read the warm and fuzzy articles that make us feel good? Sure, but realistically, this could last a year, or two or ten. People I have spoken with have said, "Are we in the 80s? Is this like 2008? 2014?" No one knows and time will tell, but if you are in oil and gas, you should always be financially prepared for this.
The Coronavirus is really coming in strong and the fear has spread to exponential heights. We need to protect the elderly right now, as they are the most vulnerable. Same with your loved ones with respiratory issues, diabetes or cancer. I don't think I have ever experienced a time where the grocery store shelves were empty and that was quite a shock for me to witness. We have definitely stocked up on some food supply, not to the level of others I know, but we will be ok for the next 6 weeks. This has blown our food budget out the window, and I am sure yours too.
This pandemic has also effected the stock market. With some of the biggest falls in a single day since the 80s. And while yesterday looked good, others fear it won't continue to rise so quickly and that more falls are expected. It's like I always say, "If you don't sell, you don't lose." Just keep holding and it will rise again. I think that if you keep staring at your portfolio, your negative emotions heighten. Just like if you stare at the paint to dry, it won't dry quicker. Just ride the wave and it will all be ok.
Most Americans cannot even afford a $400 emergency, this could be a time of real emergency, and Americans are likely unprepared financially. This is a time where many could be out of job and not able to pay their bills. Not just in oil and gas, but the restaurants are losing business so they are telling servers and bartenders to stay home. That is their livelihood and now they can't make money to pay their bills. If more businesses start to shut down over the next few weeks, more people will be out of jobs. What is scarier is when JP and I were getting gas in our car the other day, it took 20 minutes to receive 14 gallons. I don't know if that is a sign of low gas supply or what, but if gas is in short supply, people won't be able to drive to work. And if you do not have the ability to work from home, more job loss. And while this could be an extreme scenario, this is why you have an emergency fund in place for 3-6 months. So you can worry less during that time.
What have you done to prepare for this? Can you spare a square? Be sure to like, share, comment and subscribe.
There is a lot going on in society right now. We have the Coronavirus, the markets are down and oil and gas is taking a hit. I hope you stocked up on toilet paper, because the stores are out. "What is happening" seems to be the phrase I have used a lot this month. It appears things are only going to get crazier. While most of us are out blowing our food budget, again, due to stocking up our pantries in case the world collapses, there are serious events happening in people's live right now.
People in the oil and gas industry are losing their jobs, the markets are down which is more job loss, and travel is down due to the markets and the Coronavirus. And while this time in our lives is pretty extreme and it all seems to be happening at once, this is why you save up your emergency fund. Now if we only knew we needed a toilet paper emergency supply as well.
Let's break this down.
If you are in the oil and gas industry and are in a position that is very unique to the oil and gas industry, then you know better than anyone that an emergency fund should be a requirement. Oil and gas is very volatile and we really cannot predict when these low prices will end. And while I have read articles and blogs about how the prices could be back up by the end of 2020, realistically, they have no idea. Just like your financial adviser has no idea when the market will improve. Is it nice to read the warm and fuzzy articles that make us feel good? Sure, but realistically, this could last a year, or two or ten. People I have spoken with have said, "Are we in the 80s? Is this like 2008? 2014?" No one knows and time will tell, but if you are in oil and gas, you should always be financially prepared for this.
The Coronavirus is really coming in strong and the fear has spread to exponential heights. We need to protect the elderly right now, as they are the most vulnerable. Same with your loved ones with respiratory issues, diabetes or cancer. I don't think I have ever experienced a time where the grocery store shelves were empty and that was quite a shock for me to witness. We have definitely stocked up on some food supply, not to the level of others I know, but we will be ok for the next 6 weeks. This has blown our food budget out the window, and I am sure yours too.
This pandemic has also effected the stock market. With some of the biggest falls in a single day since the 80s. And while yesterday looked good, others fear it won't continue to rise so quickly and that more falls are expected. It's like I always say, "If you don't sell, you don't lose." Just keep holding and it will rise again. I think that if you keep staring at your portfolio, your negative emotions heighten. Just like if you stare at the paint to dry, it won't dry quicker. Just ride the wave and it will all be ok.
What have you done to prepare for this? Can you spare a square? Be sure to like, share, comment and subscribe.
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