The coronavirus pandemic has resulted in a global economic slowdown. Crude oil prices have slipped into negative, stock markets have fallen wiping out billions of market valuation, and China posted its first GDP decline since 1992.
Closer home, India’s GDP is also expected to fall drastically. The country was already facing an economic slowdown even before coronavirus hit the markets.
As a result, there is widespread uncertainty when it comes to money, income, investments, savings, etc. Not to mention the pay cuts and job losses in the market.
We at YourStory decided to delve deeper into these issues and try to navigate finances in these troubled times. On our newest series Money Matters with Shradha Sharma, we talk to entrepreneurs, investors, financial advisors, and experts in these matters to guide us through the current financial issues, answer questions around money, and help us invest right.
In the first episode, second-time entrepreneur Kunal Shah, Founder and CEO of CRED, joined YourStory Founder and CEO Shradha Sharma to talk about the ethos of money, and how one can grow their wealth.
Thriving in crisis
The entrepreneur explains, “In these times, we truly realise that every single thing is truly connected. How pricing, profits, and everything affects jobs. People are now realising that one sector not working can create a ripple effect on other sectors and impacting jobs across.”
However, Kunal believes that India has been largely resilient as most of its population comes from a background that focusses on essentials only. But it is important to note that job growth happens because of the non-essentials.
“While India will bounce back, it is an opportunity for the youth to realise how to thrive in crises. Either people will emerge as winners or get decimated. Every turn can make you win or lose, and many people have to be responsible for their actions,” he says.
While Kunal believes that jobs will be back soon, it will be faster for some sectors, and relatively slower in others, depending upon the impact of the coronavirus.
Improve your relationship with money
As we stress about going into lockdown and life becoming topsy-turvy, Kunal believes this is the perfect time to observe people who are doing extraordinary work in these difficult conditions. These are the people who will thrive and come out as winners on the other side, he adds.
“Startups need to reduce their burn so that we have enough runway to take off after the crisis. This holds true for individual wealth as well,” advises the entrepreneur.
According to Kunal, money is a great tool to unlock choices in life, but one must not look for shortcuts to make money or become emotional when it comes to money.
“Do not envy wealthy people. Envy their skills,” he says.
Kunal adds that now is the greatest opportunity to understand how capitalism works. He believes that the world is going to optimise to be a little more lazy – leading to a rise in work from home.
Here’s one key takeaway from this session from Kunal Shah –
“Salary and status are the output of skill and contributions. If you keep increasing your skill, your salary will keep increasing, and you will be given extra responsibilities. If, on the other hand, you chase money, skills will not come. Focus on insanely improving skills, and money will chase you.”
How has the coronavirus outbreak disrupted your life? And how are you dealing with it? Write to us or send us a video with subject line ‘Coronavirus Disruption’ to firstname.lastname@example.org