It’s almost over, we shall soon be out of this mess and back on our feet. Normal life is already starting to resume and we’re seeing what’s left of the economy as the dust settles. And the verdict is coming in as, not very good. Analysts are saying that the lockdown has created a far worse situation for pretty much everyone, than the financial crash and subsequent economic collapse of 2008.

If you’re feeling the crunch, you’re not alone. Millions of people around the world have been out of work for months and they’ve lost jobs, salaries, bonuses, savings, and investments. Take a deep breath. That’s right, just breathe. This is how you can start your personal financial recovery.

If You Haven’t, Start Saving

Did you know that there are millions of people in America and around the world, that live paycheck to paycheck? In fact, just in America, 55% of people are living on credit card debt. They’re using what little credit they have to pay for the rent, mortgage, weekly grocery shopping, clothes, and gas. This lockdown should be a wake-up call for everyone. If you haven’t already, you need to start saving. These are the types of savings accounts you should seek to start.

• Basic: Quite simple, you agree to a box-standard interest rate the bank gives you. You make one or more payments each month to meet the minimum threshold. After you have met the obligations, you will be able to withdraw the money, in chunks or all at once.
• Online: No minimum balance requirements and you have high-interest rates on your deposits. You have to be comfortable with using leading-edge technologies and there are zero or very low monthly fees. These accounts rely on the internet so if the website is hacked or goes down, you won’t be able to access your funds.
• Certificate of deposit: similar to a savings account but you cannot withdraw your money for a set period of time. This depends on the CD account, but it’s usually between 6 months to 2-3 years. The interest is higher than your basic savings account but if you choose to withdraw the money earlier than agreed, you will need to pay a penalty.

Invest in Stability

Fiat money is on very shaky ground. Billions of people are totally unaware of the global debt problem. There is a shift coming this decade and it’s going to shock the entire system. With Japan still lingering on 200% debt-to-GDP, the EU up to its eyeballs in debt, the US chalking up to 117% debt-to-GDP, and China hovering around 250-300% debt-to-GDP, all major economic zones are struggling to keep the value of their currencies high. In fact, we are seeing this shift happen already. The Coronavirus has shut down the world economies and consequently, more money has been needed to be pumped into the economy. The debts are set to rise higher, which has led to jaw-dropping talk of defaulting on foreign debt.

It’s time to invest in gold. Just 3-4 months ago, gold was worth around $1,300 per ounce, it’s now around $1,700. Currently, it’s projected to rise over $2,000 per ounce by the end of the year. Governments, investors, and normal people are starting to see the value in stability. Fiat currencies have lost a tremendous amount of their value over time. The US Dollar has lost 98% of its value over 100 years. Gold, however, has stayed stable and is currently having a bull run. Buy now and you could be making close to 100% profit by the end of the year.

Borrowing Into the Future

There’s massive talk about what role banks will play in the recovery. Well, just like nations, banks too are having to deal with debt. They are major holders of corporate debt and national debt, so can you really rely on someone who is waiting to be paid by others before they can pay you? This brings up the question, how do credit unions compared to banks? Let’s break it down.

Credit Union

• You have to be a member of a credit union, which makes it inherently less accessible than a bank.
• The credit union is owned by its members. This means it’s also classed as a non-for-profit.
• Because it’s a smaller organization, it also has fewer financial products.
• It also doesn’t have ATMs or local branches.
• It does, however, offer higher interest rates for your savings.
• There are lower fees for borrowing and much more flexibility is given, so you have an affordable plan to make payments.

A Bank

• Anyone can use a bank, you just need to set up an account and you could leave it totally empty if you wanted. There are also no monthly fees for holding a bank account.
• There are many more financial products to choose from, such as investment banking services, business loans, business accounts, commercial loans, etc.
• You can access your bank account from ATMs, whether they be from the bank or not.
• You usually get much lower rates than credit unions and the fees are higher.
• The bank is trying to turn a profit, so it will use your money to invest and create more money for its shareholders.

Looking at it this way, it looks like everybody should be part of a credit union. Once you get past the membership hurdles, you’re good to go. You make consistent payments every month, such as from your wages, and in return, if you ever need to borrow it will be for a much lower rate than a bank would ever give you.

Don’t see this recovery as an uphill struggle. You have the opportunity to make life-changing decisions that could see your finances become more stable. Invest in gold, as it’s stable value has endured for centuries. Become part of a credit union so you have something to fall back on, should you need to borrow. Open up a savings account in a bank, so you can reap the reward for being prudent and disciplined in a long-term curve.