How to Be Financially Stable During Pandemic and Chaos

Since the early months of 2020, Covid-19 has had devastating effects on communities. In the wake of its most intense period of infection, the economy as a whole has degraded, leaving individuals and households with vast financial issues, with particular regard to investment. It can be difficult to analyse the financial market in crises, however, Hartanah Group offers a number of strategies to assist in the wealth creation process. Johny Gunawan, CEO of the group, explains these strategies, including the Cooperative, Business Education, and Equity Crowdfunding schemes, in addition to a three-point strategy to maintain wealth amidst chaos.

Transparency is vital in times of crisis, with Hartanah Group embodying this quality in both the public and private spheres. The group’s Public Auditor Report is published every three months, and the company remains the only one of its kind to consistently pay back clients on time and in monetary entirety. Equally, goal driven behaviour with regard to handling money is paramount to stability and aiming for specific expenditure and income can help to stay on track, even during the pandemic. Gunawan is goal driven himself in both his own wealth creation and in the support of small businesses via crowdfunding so that business owners may raise capital without a loan.

The most essential tips Hartanah offers are a three-point advice strategy.

Firstly, the building of a security fund can help substantially. Having at least 6-9 months of expenses as a security fund decreases financial stress. When good investments are applied this fund can capture opportunities in the chaos. Even in the event of a stock market crash a security fund can assist with mortgage payments that may have otherwise been unpayable. 

Additionally, cash and cashflow are helpful in chaos. As money cannot ‘disappear’ and only be transferred, it is important to be in the wealth creation segment of the cycle. Cashflow can be easily explained in an equation; cashflow = income – expenses. The objective should be to increase cashflow, which occurs when income increases, leaving expenses unchanged. To maintain cashflow in the event of a decreased income due to crisis, expenses should be decreased accordingly. A priority check is emphasised by Gunawan and the Group so that unnecessary expenses can be cut in this event, such as the gym membership that isn’t used nearly enough or the money spent on socialising (which, in accumulation, can become very costly).

Having multiple streams of income is also extremely useful in the event of crises, specifically Covid-19, with part time workers doubling in unemployment in the early months of the pandemic. When finding a second job, or ‘side hustle’, diversity is key and it is wise to venture out of the industry of one’s main occupation as some industries can be gravely affected by chaos. With a second stream of income from a job in a separate field, it vastly decreases the risk of losing income altogether, therefore providing financial security and stability. Diversity in stocks is also emphasised by Hartanah Group. Gunawan explains his personal approach to this, stating “I go heavy on cash generating portfolio that is not so pegged to the economy. For example, I use Forex”. To protect his capital, he uses a hedging strategy and to preserve time he engages a Proprietary trading company to trade on his behalf.

Hartanah Group, as a whole, is focussed on the betterment of individuals’ and families’ financial survival in these challenging times and stresses the important financial advice explained by Gunawan.

Johny Gunawan is an established entrepreneur and Wealth Management Coach from the Hartanah Group. His insights and education has helped hundreds of budding entrepreneurs and small business owners to take control over their financial situation and gain the flexibility and freedom they’ve been seeking.