Andrew Chia, CENFIS correspondent 9.49am
16 April 2023
There are more and more economists and financial experts giving warnings about impending de-dollarization. Here is one article that talks about what if that actually happens in the near future. And how we can prepare outselves for it.
First, let us take a look at different groups of people. CENFIS classifies people into various groups such as the hardcore poor, the rich, the poor and middle-class, students and entrepreneurs, etc.
The hardcore poor are in trouble even when the economy is good. And the rich are usually not affected by bad economy or financial turmoil, although some of them may get into trouble due to poor cash flow management. More than 90% of people belong to the poor and middle-class.
When we have financial turmoil the poor and middle-class may lose their job. This is not because their boss of the companies don't want to take care of them. They themselves will be in trouble. Even banks go bankrupt nowadays. When an extremely dangerous event called de-dollarization happens, a lot of businesses will close shop or they need to downsize and retrench staff.
So, if you are a day-job holder hanging on for dear life to your job, you should take a hard look at the term "job security," and ask yourself the scary question, "What if I lose my job or take a paycut?"
Inflation is expected to shoot up, driving up the price of our daily necessities to unbearable levels. What is going to happen then? The idea of saving for a rainy day is good. If we have a bit more cash on standby it would reduce our stress levels. Start saving now, no matter how it hurts. Postpone buying that new phone model to a later date when the world economy and our country's economy are in a better shape.
And, more importantly, we need to get ready to survive on our own without our boss taking care of us. It would be a good idea to save some capital and start a small business. When we have a good source of income financial turmoil will have little or no effect on us. Who knows? That small or micro business that we start may help us improve our entrepreneurial and money making skills. It may grow into a big enterprise and give us our financial freedom.
Good luck, guys! More importantly, stay healthy and stay safe.
Here is our article from the expert analysts for today,
Learning message: Be prepared for financial turmoil by having a stable source of income.
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