What will happen to our salaries after the pandemic?
What will happen after is now the most exciting question. After it will be difficult. First, you need to quickly return to the working rhythm, and secondly, make sure that the work priorities are still relevant, the tasks are clear, and the course is correct.
It is not at all a fact that part of the Russians will be where to return to work. Small and micro-businesses engaged in the service sector or around it will die by 80%, the rest will have to adapt. It will definitely be a new reality, as we did not know. The good news is that each of us will go to a whole new level.
We can confidently say that raising salaries in the next six months, or even longer, does not make sense to wait – the business just needs to survive. You should be prepared for the fact that the employer will offer to save a job, but for less money, and make a decision in advance. This was already in 2014, so it should not be very scary.
Are there areas in which salaries will rise? For example, will doctors pay more and less for bloggers?
Doctors, teachers are all the same employees of the budget, as before, in the “pre-coronavirus” times. They will not become “Kings of income” in the labor market simply because the entire budget sector is very slow.
But the respect for professions will definitely become greater, because the priorities will be placed in the only true way. A doctor is a fundamental profession, he studies for a long time, he improves for a long time, but he also works for a very long time.
In times of crisis, a blogger may find himself without livelihood at all, because advertisers have a tough time with money. And then, of course, everyone decides for himself.
If many companies permanently switch to remote work, will their employees lose their salaries?
A technically remote staff removes serious amount of expenses from the employer: from renting space to the parking, lunches and corporate parties.
Pay for work from home is unlikely to become less. After all, a valuable employee for a company cannot be cheap. But the business’s own costs can certainly become lower, and that’s good.
Everyone around us says that crisis is a time of opportunity.
The crisis is truly time of opportunity. You can try to occupy the vacant niches. Small bakeries near the house, cozy coffee shops, some shops with highly specialized goods – all this will be in demand by the townspeople who want to return to their previous rhythm of life.
How long will it take for small and medium-sized businesses to recover from the crisis?
Small and medium-sized businesses need consumers with normal purchasing power. Simply put, business will come back to life at the same pace as consumer. If people are willing to spend, business will rise faster.
The problem is that few people will have free funds to exit the self-isolation regime. This means that the restoration of business processes will be very slow and painful, competition for the client will increase.
What about the price? Will the state regulate the value of goods, and which ones?
Nothing will remain cheap, one has to come to terms with this and accept it as a fact. Imported goods rose in price due to jumps in the exchange rate, and domestic goods followed in line with market laws.
State can take control of price increases for groups of socially significant goods, but hardly more. Otherwise, our relatively free market will turn into its semblance, which is bad for business. This means that prices will rise anyway.
If oil is getting cheaper, will gasoline cost less too?
If oil is getting cheaper, will gasoline cost less too?
There is a purely Russian paradox here: fuel prices rise both when oil rises in price and when oil becomes cheaper. This is because ⅔ the price of a liter of gasoline – duties, excises and fees.
The cost of oil occupies small part and does not particularly affect the final price tag at the gas station. The state does not remove the share of taxes from the industry – there is nothing to get cheaper for gasoline from oil.
Should I make big purchases now? For example, invest in an apartment or buy a huge TV?
A TV, like a car, is not an investment, but an expensive purchase. Such goods lose their price exactly at the moment when they leave the point of sale, and then only decrease in value.
Apartment – this is a constant. At least you can live in it or rent it, at the very least – to make repairs and later sell more expensive. There are definitely options here.
Can I buy something on credit now, such as a car? And something small?
You need to be careful with credit. Firstly, you always “feed” the bank, and it already feels rather well. Secondly, the purchase of a TV on credit is a so-so story, because there is no urgent need for it, and it is quite possible to accumulate funds for its purchase.
In adult and financially conscious life, loans are needed for expensive purchases, which are already affordable, but with a loan calmer. For example, a car or housing. A smartphone on credit is not only expensive, but also stupid.
What to do to savings? Maybe open a deposit, exchange it for currency, invest in securities or just put it under a mattress?
The main thing that is now worth doing with savings is to do nothing with them. Do not spend, do not make sudden movements, do not buy currency at the peak of the value of all dollars savings. Money does not like emotions.
A little later, when the financial panic resolves, you can divide them into three groups: rubles, dollars, euros. This is the most conservative and safest option. In our country, the dollar is always reliable, whatever one may say. But buying foreign currency is now a bad idea: the dollar is too expensive, you need to wait.
What will happen to the ruble exchange rate? He will still get up from his knees?
Russia’s budget will now go into deficit, but while oil is cheap, there is nothing to block it. To do this, the ruble was devalued, that is, made it weaker, due to the difference in rates, the lack of money will be closed.
In the next six months, little will change here. The dollar will remain in the range of 70–80 rubles, the euro in the range of 80–86 rubles.
What to do next time to protect yourself from the effects of the crisis?
There may be several potential financial assistance mechanisms. The most obvious of them is the creation of a certain financial “airbag” equal to three monthly wages. This will help to quarantine and without work for some time, if such circumstances arise.
Savings should not be stored in one thing, it is better to form a basket of several products. This can be done over time, there may be currency, investments in metals and funds, and any shares. We all thought: “This definitely will not happen to me.” This was the biggest fallacy. Let it be a good lesson for the future.