The pandemic has had a major negative impact on business and economies world-wide. Many countries are facing recession, whereas many businesses have taken a blow including billionaire investing legend Warren Buffett.
According to American multinational conglomerate; Berkshire’s Hathaway’s most recent report, the conglomerate suffered “mild to serious” of the pandemic during early spring and summer of this year.
Nevertheless, the quarterly profits of the company still gained by 87%, hence “Oracle of Omaha” seems to be tackling with the crisis the right way.
You can take cues from him. Here are five ways you can tackle the monetary problems arising due to the pandemic.
Take full advantage of low interest rates
Looking at Buffet’s success, the key to increasing your profits is by gaining advantage through opportunities. Thanks to the Federal Reserve, he sees fabulous open doors for borrowers in 2020.
“This is a very good time to borrow money, which means it may not be such a great time to lend money, but it’s good for the country that it’s a good time to borrow money,” he said during Berkshire Hathaway’s online shareholders meeting earlier this year.
According to Buffett, cutting a key interest rate almost to zero was a wise decision by Fed, as it would help the economy become stable again.
How to be like him: The mortgage rates are quite low due to the ongoing pandemic these days. If you purchasing or already on a house and have a solid credit score then the best you can do is get your hands on today’s all-time-low mortgage rates as soon as you can.
Comparing and shopping around for mortgage offers will allow you to find as low as 2.50% on refinance and new mortgages.
Don’t carry credit card balances
Since a lot of people have been unemployed due to the pandemic, a lot of Americans have been recently relying on credit card debt,
Relying on credit cards as a result of budgetary difficulty is a certain something, yet Buffett says a few people utilize plastic as “a secret stash to be raided.”
When asked for advice by a friend who was under a lot of debt and also had credit card debt at 18% intrigue. Buffet said, ” If I owed any money at 18%, the first thing I’d do with any money I had would be to pay it off. You can’t go through life borrowing money at those rates and be better off.”