Survival plan for unstable world.

I was talking with a loved one on the phone recently and the loved one was wondering what direction the world was heading in.

It’s true that he can sometimes seem crazy and uncertain. It may seem like it's going too fast.

If you've known me for a while, you know that I'm an optimistic person.

What I answered on the phone was that there were two ways to not be worried about the direction the world and the economy were taking.

These 2 ways allow you to get through the worst as calmly as possible.

Anyone who has “highly valuable” skills has no reason to be worried.

The best doctor, lawyer, or engineer in your town has little to worry about, no matter the state of the economy.

It's the same for you if you have skills that people need (no matter the state of the economy).

Serving coffee in a bar is unfortunately not a skill that makes a difference, everyone can do it.

Scanning items at the supermarket checkout is the same.

I'm talking about skills that will always put food on the table, no matter what's going on outside.

Knowing how to sell (buying less expensively to sell more expensively), mastering some of the law, being good at marketing (putting yourself forward, storytelling, being able to sell ice cream to a penguin, etc.), negotiation , … are skills that not everyone has and they are what ensure you do not lack anything when nothing is going well in the world we know today.

I also told this relative that those who have assets capable of generating cash flow will be little worried by a crisis and that is also the point of investing: we seek to win when everything is going well but also to don't lose when everything goes wrong.

This relative said to me: “yes but what if the tenants no longer pay”?

Again, the idea of 95% or even 50% of your tenants no longer being able to pay you is one that is unlikely to happen if you have done your job correctly. And especially in a country like France where aid falls all the time from all sides, you just have to hold out your hands.

The objection of unpaid debts has always systematically remained a fear in France, whether in times of crisis or not. You only need to look at the figures to see that this risk is over-hyped in relation to reality...

The same goes for your dividends from listed companies, not all companies will remove them. On the contrary, companies will increase them (this is what happened to me during the health crisis with only 2 companies out of 21 which reduced the dividend).

The idea to remember is that holding equity (real estate, listed or unlisted company shares) producing cash is the best way to protect yourself.

On the other hand, there are ways to do it to avoid having your tap water cut off as mentioned above with tenants who no longer pay or dividends canceled.

This is not going to please everyone and those who are suffering at the moment. But how can I be able to still continue to increase my income when the economy seems uncertain?

The answer lies in the sum of the two previous points.

Raphaël Carteni

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