Link to Managing Uncertainty Cartoon here

Globally, and also in Lebanon, it does not necessitate that you hold a PhD to notice that the financial scene has changed. The Covid frenzy, and no, I am not going into this in this article, coupled with all "restraining measures" by governments all over the planet, from consecutive lockdowns to "gradual" re-opening of businesses or working from home models, all these have brought a behavioral shift in our day to day finances. People have been encouraged to spend more online as freedom of movement has been greatly trimmed, so it is important to remember the following core elements to healthy finances.

1. Keep your savings for extreme emergencies

I know those online deals may seem like the real thing and you might desire that item or service. Think again. Do you need or want it? Sleep on that acquisition, if you can. Focus on removing any emotion from your purchase and keep your investments as rational as possible. Stay away from that savings account or nest. I say nest because many people, especially in Lebanon, have lost their trust in the banking system and are keeping cash at home. Loads of cash. And it can be oh so tempting to just spend it on a splurge... My advice, stash it somewhere away from your eyesight and erase that amount from your memory. The short term one. You will eventually access it, when it's a matter of life and death that is... If you think the Great Reset that was mentioned at Davos last year is not for tomorrow and you will not worry about this apocalyptic shift in the markets, you are absolutely right... about averting panic thoughts! Because when you indulge in such speculation that the markets will crash and you will loose all your hard earned money and I don't know what else, you are conditioning yourself to take an emotional decision about your finances. And that is precisely what you should dodge at all costs!

2. Stay away from new debt and keep old one(s) in check

Working remotely automatically changed the consumer spending attitude. One does not drive and/or commute to work anymore or at least as often. That's a lot less in car / vehicle maintenance, isn't that great? One can also postpone renewing that wardrobe. After all except for Zoom meetings or video conferencing, you could very well be on the sandy beach on an island sipping on cocktails while punching those numbers and preparing your reports from your phone, tablet or laptop for all that matters. Obviously, you would expect a good and stable Internet connection and the world would be at the reach of your fingertips. Isn't that of utmost convenience? You can find many other arguments to avoid incurring a new debt. Dude, aren't your old ones enough? And since banks everywhere are being a little more lenient on repayment, do not pay old debt off at once. Yes, yes. You are reading right. Pay only the minimum required. At least, this way you make sure to have enough cash remaining at hand. Because in these times, and boy you all know I hate cash, but I have to admit it, in these times, cash is indeed king. Corporations are forced to let people go, so, without being a genius, just keep an eye on your income and your expenses and keep the numbers balanced. Ta daaa!

3. Diversify your streams of earnings

Uncertain times call for out of the box solutions. Or maybe they stem from a box. Or two. It doesn't really matter. What I mean here is we now have the possibility to create different / new money inflow. Legally. I'm not suggesting you go selling arms or smuggled artifacts. It is usually in time of urgency that people get creative. I see that a lot in Lebanon, where I have been living, again, for almost a decade now. Even before lockdowns and reduced works, the country was struggling greatly with an economy almost brought to a stop by a regime corrupt to its spine, the lack of recovering strategies, legal, financial and administrative, and the absence of whatever clear policies when it came to internal, regional and global politics. And the Lebanese people, which have always been admirably resilient and attached to make a decent living even through the toughest moments in their history, still found ways: they initiated and expanded coloring, crochet and knitting communities, started baking from home to assist the needy and the less needy, created hand made daily usable items and supported each other beautifully. They could not count on any governmental aid, not even after the August 2020 blast that devastated Beirut, killed more than 200 people and displaced around 300 thousand. The Lebanese people didn't await official help. They licked their wounds, removed the dust and once more stood up and lived on. And so can you!

From personal experience, when the future looks grim, life has taught me, the hard way I have to say, to practice the pause, remain calm, and keep my attention on my set goals. You might say that I am not walking in the shoes of any of you. True. As you haven't been walking in mine. See, when my business partners left me with half a million US dollars in corporate debt, I struggled and battled to take care of the red, and I did. All on my own. And within a couple of years that is. So I do know what it means to have limited means and to start from scratch. It's tough and sometimes you will feel like quitting. And I wouldn't wish any to suffer what I had to go through. And yet, it was one of the greatest practical lessons I mastered. Remember, as exquisitely expressed by Margaret Wheatly, "in these troubled, uncertain times, we don't need more command and control; we need better means to engage everyone's intelligence in solving challenges and crisis as they arise".