Financial Lessons Learned From The COVID-19 Pandemic
The last year has been a tough one for everyone. COVID-19 has upended normal life for everyone, especially those struggling to make ends meet already. So what lessons can we take away from this unusual ordeal?
March will mark one year since the COVID pandemic began. In that one year millions of Americans, and people all over the world, have seen their lives turned upside down. Massive furloughs and unemployment caused many to face financial hardship that they could have never foreseen. So what can we take away from this?
Emergency Savings Is Important
If COVID taught us anything it’s that having an emergency savings is crucial. Many people faced extreme economic hardship in 2020 that an emergency fund couldn’t even come close to tackling — but having something stashed away buys you time. Even having one month’s of expenses tucked away gives you one more month to make a plan.
If you don’t have an emergency fund make it a priority for 2021 or once you have found your financial footing. COVID taught us all that everything could be turned upside down quickly and unexpectedly and being even little prepared could make a huge difference.
Home Is Where The Heart Is
Could you have ever imagined how much time you would spend in your home in a 12-month period? Home is important. Space is important. Spending considerable time at home has given us all a new appreciation for where and how we live. Maybe you don’t have enough space? Maybe you have sacrificed living well just to live closer to work? Maybe you pay a ton more to live in a small space in a cooler neighborhood? Let this experience help you re-evaluate your needs.
Budgeting Is Your Friend
No one likes to live on a budget but if it could give you a financial cushion to rely on in case of another COVID-like calamity, wouldn’t it be worth it? Having something in the bank has never been more important and attractive. Putting yourself on a budget (it doesn’t have to be a tight one!) so you can save more is something a lot of people are taking up in 2021. Saving cash for a big purchase instead of putting it on a credit card is a great practice and a way to avoid debt that could quickly snowball.
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