Coronavirus – Now what? How do we prepare for a similar crisis in the future?

If you’re like me, aka. Millennial, this will likely be the very first recession / depression like situation you’re about to experience. In the face of so much uncertainty, there is one thing I can tell you with absolute certainty:

This is not going to be the last recession-like situation you will walk through in your lifetime.

The world’s economy fluctuates in a surprisingly predictable manner – as predictable as the last rollercoaster ride you’ve taken. Recall that ride, that steep dive downwards, your body slicing through the air and the screams that seem to engulf everything else around you. Once the worst is over, you begin yet another slow climb upwards – to the next steep dive. And when that happens, it almost always catches you off guard. But as you ride it for the second time and the third time and the subsequent rides you take (assuming you’ve got the express tickets so you won’t have to wait all day long), you become used to it. The dives still take you through a chilling moment, but it no longer becomes a surprise.

The economy works in a similar fashion. It’s a rollercoaster ride.

Credits: LumenLearning.com

Long story short: there will be multiple good times (peak) and bad times (recession / contraction).

The real question is: How do we prepare ourselves for the peaks and recession such that we don’t take a nose-dive downwards and hit face-first onto the ground the second it dips into a recession?

Well, ask yourself what’s that one thing you need to have throughout the rollercoaster ride, no matter how many bumps and dives there are up ahead?

Your safety strap.

The safety harness / strap / guard is the thing which keeps you where you need to be through the ups and downs.

So what’s the equivalent of this safety harness which we can turn to in life to keep us where we need to be – snug, safe and happy – throughout the different stages of the economic cycle?

It’s simple: a sound, robust financial plan.

Side note: The esteemed work of a financial planner has been tarnished by the run-of -the-mill salesperson who makes a living shoving overpriced insurance plans down your throat. Fortunately, it’s becoming easier to distinguish a good financial planner from an insurance salesperson. From designations such as the credible Associate Wealth Planner (AWP) and the Certified Financial Planner (CFP), consumers like yourself would have a little more confidence in sifting out the bad eggs from the bunch. Have a listen to my podcast episode #1 at http://www.anchor.fm/womenwealthjourney to learn more about the three questions you can ask to interview your financial planner so you’re prepared to weed through the bad eggs and find a good financial planner for yourself.

Establishing a solid financial plan now will put you in a better place for the next recessions and peaks upcoming (or other financial setback).

Here’s a quick run down of what makes a good financial plan:

1. Good savings habit
2. Strategic allocation of income into investments, liquid savings, insurance, and others.
3. Ensures that risks and uncertainties are insured adequately
4. Long-term and short-term financial goals and life plans are taken into account and revised annually at the minimum.
5. A solid continuity plan for the next generation.

There’s a lot to be shared from this simple list of bullet points, and if you’d like to appoint me as your financial planner, you can always do so by booking a video call appointment with me via http://www.calendly.com/cherietanjy/initial

In the coming months, I will be sharing those bullet points in the form of online courses and webinars. Feel free to express your interest in these online videos and courses by dropping me an email at hello@cherietan.com or send me a DM via Instagram @cherietanjy

Young women in tech are alarmingly ignorant of their finances

I trudged up the stairs and into the next conference room, with a panel of women set to speak about their tech founder experience and journey. I groaned inwardly, knowing exactly how the entire panel experience will be conducted like some sort of banal, insipid script for a play that by now seems trite and almost clichéd.

The entrance to the conference room was left wide open. Women of all walks of life filled the space with laughter and ebullience. The women founders in the room, women who’ve founded some sort of movement, charity, company, or their long-lost cat, were flushed with excitement, chattering away with eager attendees who’d stop at nothing to snap and upload wefies onto their Instagram stories and feed, and race their fingers across the screen of their smartphones, ferociously typing out captions and hashtags with such ardor.

“Cherieeeee,” screeched a familiar voice from behind. A slightly inebriated woman the host of this conference— teetered towards me with a microphone in her hands. She clearly was in need of assistance, also, flat shoes. As the host of the conference, she probably felt obligated to be decked out in an arresting outfit – the striking contrast between mandarin orange and ivory complimented her apparent zeal.  “You can’t imagine how glad I am to have you here. You need to be up on stage! You need to promise me that you will speak at my events again, especially since you’ve taken such a unique path in your work!”

The breathiness of her voice made it sightly difficult to discern the level of seriousness she had in her tone. I returned a quick nod and flashed a smile, knowing exactly how things would play out from here. It was like clockwork, with everything pre-planned to the minute: I got to speak with women who attended the conference, shared my work and purpose.

I talked to a lot of women under thirty who, when they found out I was a financial planner, said things like, “Oh, I should talk to you” or more alarmingly, “Oh, yes I know, I need to plan. I’m so bad finances. I’ll think about it”

Needless to say, I felt nauseated.

Now, of course, this is an observation that likely only I would have made at this conference, as I was the only financial planner there (that I know of), who rose from an intensive background in software and business. Perhaps my experience transitioning from a software business into the world of financial planning was the answer to addressing this alarming lack of financial knowledge in the world of tech, particularly so for women.

The specific questions I got from these women were about stock investments, or “investments”, and crypto. Which, frankly, scared me a bit. Surely these investments are interesting, but on the priority list of “What You Need to Focus on to Strengthen Your Financial Health and Wealth”, they’re so freakin’ far down they could almost fall off the bottom.

Here are these young, promising women who in just a couple of years were propelled into a career that was financially rewarding and purposeful, which could give them so much power and choice in their life in a mere 10 years down the line..and they’re too distracted and intimidated to see further than what media and society has painted out for them.

Imagine if all the women in tech, all the people in tech, started learning about personal finance: how they could control their finances, and taking full advantage of the financial opportunities they had going for them. What could happen if all of these women had the financial muscle to make decisions they needed to make, decisions they wanted to make, and not just decisions that were unfairly and disproportionally influenced by the likes of media and society? I have a good feeling it would change things for the better — for women, for the industry, for our society.

Who runs the world? Uh, clearly not girls. Yet.

Book your appointment for a financial review: https://calendly.com/cherietanjy