The world is going through a major financial turn-around. A new world economy is emerging, and no one has a clue what new financial models will evolve in this process. Thanks to coronavirus pandemic, an unprecedented change is happening around us. Everyone is wondering what is in store, and how we will survive this era.
But, there is good news. It is already the beginning of the end. Once the vaccine reaches everyone, we all will be back in action. The world will become more hectic than ever. We all will be super busy, both in the physical world and the digital world. But, before the good times begin, let us address a key problem most of us are going through: How to manage the current financial crisis.
Let us look at Chanakya’s advice on this. But, note that his tip will be helpful not only to manage the corona-related financial crisis, but the financial problems that can emerge in the future too.
Chanakya says, “Be ever active in the management of the economy because the root of wealth is economic activity; inactivity brings material distress. Without an active policy, both current prosperity and future gains are destroyed.”
(Arthashastra 1.19.35,36 )
Kautilya, or Chanakya, is known as one of the foremost economists of mankind. Nearly 2,400 years ago, he discovered the principles of how to handle any financial matters. He is telling us to ‘be ever active’ in good or bad times. Do not be lazy. Because the activity is directly related to economic growth. If we are inactive our well-being will be lost. And, due to inactivity, our present prosperity will vanish. Plus, our future gains will also be destroyed. Activity is the key to success in the present and future as well.
1. Stop worrying, start thinking: When a financial crisis hits us, our minds get blocked. We get mentally stuck. And instead of thinking about solutions for the current financial crisis, we start creating more problems inside our minds — ‘Oh, I lost my job... Now there will be no income! How will I pay my EMI or my other expenses... I will lose everything...I will be finished...’
Stop that flow of thoughts going in a negative direction. Now, instead of worrying, start thinking about what can be done. Look at another job or source of income, speak to some friends or look at an alternative career. Think, rather than reacting.
2. Financial calculations are a must: Since it is a financial matter, it is important to start working on the numbers. Start doing your financial calculations. Sit down with a cool head and list down your income and expenses. If you are a family person, get your spouse involved in the discussion as well. Also look at the savings you have, and how much time can you sustain without any income.
Then make a practical plan based on those numbers. Cut down unnecessary expenses. Think what new or extra activities can you do to get more income. If possible, also think of diversified income from multiple sources. Once you work on your numbers, you have half won the game. You will feel relaxed and under control.
3. Get out get going: Now, friends, it is time get out and get going. Let not the fear factor make you inactive. Even the lockdown has opened out. Be careful and take all precautions. Yet, it’s time to be active. Lucky are those, who can sit and work from home. Yet, the majority has to get out and get going. We need to start some work, otherwise there is a danger that you will be at home forever, and develop mental health issues.
Remember, what Chanakya said, “Without an active policy, even current prosperity and future gains will be destroyed.”
That means, even if you have savings, and are financially well to do, start working. Because the biggest danger is that without activity, you can become lazy forever.
Whenever a financial crisis hits us, the first enemy is our mind. Win over the mind, get into a positive mindset and get going. Soon from a financial crisis, you will discover financial success.