The problem
In these perilous times, outlook uncertainty distresses people across all classes. This comes as economic analysts and experts predict the worst without guiding us as individuals or institutions on the possible solution so that we may choose the best one, choosing instead to push us to concentrate on the problem and its causality.
This would make the foreseeable future foggier, therefore, we may need to think ahead to what I call “getting out of the consensus reality.”
This is what economic analysts view as our current position — soaring demand and a lack of supply thanks to the pandemic has this led to price hikes across a broad swath of goods and services, making the rising cost of living the most important issue.
According to the National Institute for Economic and Social Research (NIESR) in the UK, more than 250,000 households will “slide into destitution” next year. It also said that the total number of people living in extreme poverty will rise to around 1.2 million unless the UK government acts to help the poorest families hit by the energy price shock.
With statements like this being thrown around, is it still too early to say whether inflation has peaked? And how can one stop worrying when shocking statements are becoming a common occurrence?
Solutions
In order to figure out the possible solutions, let us forget for a second the complicated terminologies being used such as globalisation, sustainability, carbon footprint, etc (with all due conservatism), since these terminologies have a brilliant and shining perspective and yet do not introduce practical solutions.
With that being said, we are left with a few solutions — either doing nothing at all, choosing to maximise our expenditures as long as we can afford to, or moving maximising our income from different sources while rationalising our expenses.
Challenges
Although the third solution may be considered the more rational one, the clear fact indicates that it is difficult to follow, as no more than 20% of the population will be able to implement it given that it needs some organised efforts with capital — even if it were a minor one — and for sure a considerable time to manage it.
And the main obstacle would be what is called “consumer behaviour,” which indicates that we normally appreciate what we used to do habitually as consumers while understating producers’ efforts since we are not one of them.
The implementation
The logical question would be how could one maximise their income amid a crisis?
The answer is simple, and it starts with understanding that crises are like sea waves; they have a pattern that can be predicted, allowing you to prepare yourself accordingly.
If you have read this far, let me tell you a secret to overcome the challenges mentioned above and become one of the aforementioned 20% — which are the producers, not the consumers.
As a starting point you need to dig deep into your mind to find the hobby that you buried in favour of all the responsibilities that you now have and find a way to create a demand for it in the market and then monetise it.
Congratulations, you just started your own small or medium enterprise and have become an agent of empowerment for yourself; the suppliers, clients, and staff you will be working with; and the economy that you are a part of.
* Mostafa Mohamed Abdo has more than 21 years of experience in strategic planning and business and economic analysis.
