Both businesses and individuals have felt the economic impact of the coronavirus pandemic. With lost incomes, government restrictions and lifestyle changes, it has been a time when many have had to rethink financial decisions. However, even though times have been hard for many, there are still some great money lessons one can learn, which can be helpful not only in times of pandemic, but also in the absence of it. Consider these examples.
Having a Variety of Investments, Income Sources and Skills is Always a Good Idea
The pandemic hit some industries harder than others. Examples of the worst hit, especially during the first few months include hotels, airlines, theatres, parks and gyms. This doesn’t mean that people who had invested in these sectors or employees who worked for these businesses had done their calculations wrong. It is simply an issue of what you can and can’t predict. Thus, in that light, if you can, consider diversifying your investments. For workers, learning multiple skills can be beneficial. Not only will that give you something to keep you going in the event your main job’s disruption, but it can also help if you are trying to earn extra cash.
Know Your Emergency Fund Options
If you lost all or part of your income, or if you get some unexpected bills and responsibilities, how long would you survive and how would you do it? This is a situation many have found themselves in since the pandemic struck. And some hadn’t planned for lost jobs, lower income and taking responsibility for a loved one’s bills. This is one of the key reasons why you should always have emergency fund options planned out well.
Having an emergency fund that is equivalent to two to six months of your living expenses is the most advisable option when it comes to preparedness for covering the unforeseen expenses. You can also consider borrowing, especially where you still have some income but need some cash fast. Quick loans, such as payday loans can come in handy when you need to boost your cash flow or pay for that unexpected bill. Find more information here from New Horizons. New Horizons is an authorised and regulated credit broker, serving as a loan introducer for numerous lenders.
You Have So Many Saving Options
Another key lesson you can take from the pandemic is the number of saving options you have. Whether it’s simply buying groceries in bulk to reduce the number of trips to the grocery store or readjusting your budget to prioritise needs only, these are lessons you can carry forward. When you save money each month, you can pay your debts faster, achieve your business goals within the set time frame, grow your savings and make more investments.
However, even as you save, don’t forget to reward yourself once in a while. Also note that wants and needs do change over time. Thus, consider setting your goals and re-evaluating them often, working with a budget and cutting down costs whenever you need more money for the most important things.