Coronavirus Pandemic Has Exposed the Real Need for Financial Literacy!
From the last several months of lockdown and coronavirus pandemic effect, we are captivated in our homes. In the beginning, it was not that bad, but as time passes, we started to feel the urgency to get back to our jobs.
The Coronavirus Pandemic has changed the life of all stages of people, not only a cause of physical illness, but also it is a hammer for the financial breakdown of Millions of people in the world.
In this situation, some people have lost their job and developed depression; some are still struggling; some are finding a new and better way to become financially settled.
Today, I am here to share my experiences of the last several months and what I’ve taught about money from this pandemic situation. If you are interested, then keep reading—
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1. Reserving Against Emergency Situations Is A Must:
One of my biggest mistakes was I used to think that money is not for savings. I used to save money to spend it on my hobbies, like traveling or making short films, which is not considered savings.
Now, in this lockdown, I’ve got to know what actually savings mean. It is a certain amount of money that people reserve for their crisis, not for spending them to buy any desired thing.
Not only me, the financial experts also believe that this pandemic has manifested the pressing needs for urgent funds as well as cash reserves.
Unfortunately, those who haven’t lost their job or meet the need of any medical emergency care, are not aware about saving money. But the truth is, you should always insulate some money for the future.
2. Taking Loan Of A Hard To Repay Amount Is A Big No:
In order to fulfill our critical life goal, taking a loan from banks is one of the most common and easy ways. If you are not a very rich person but still want to buy a luxury car or build a house, you will definitely need to take a loan.
Well, It’s okay to have a loan from your bank, but if the amount is too big to repay, you should think twice. I have the worst experience of repaying the loan cause I’ve forgotten that life is unpredictable.
I recommend making sure about your ability and sign up for any loan because an unaffordable loan can easily throw us into a financial emergency and psychological breakdown. So it is better to talk with your family or well-wishers before taking such a big step.
3. Budgeting Is Not Only A Plan But Also Crucial For Future:
Now, tell me, what is the most painful thing after getting the salary? It is the budget fixing thing, right? Every month, after getting our salary, we start to blow that money without thinking of the future, which I think is one of the worst habits that we cultivate.
The Coronavirus pandemic has taught me the significance of making a budget of money. Whether the earning is small or large, we should always make a budget according to our daily needs and emergency conditions.
If we build up a margin in order to keep ourselves ordain, it will be much easier to reserve a certain amount of money every month. You will not feel any advantage immediately, but it will definitely help you fight against emergencies in the future.
It may seem like a boring task to keep your every penny’s account, but trust me, it will turn your financial condition about 180°.
Similar reading: How to Job Search During the Coronavirus Pandemic?
4. Preparing Yourself Doesn’t Mean To Panic Out:
Emergency readiness may also extend to the home larder. As rabidity sets in, the consumers become panic out and start shopping excessive and unnecessary things, as if they won’t find them for the rest of life.
It is a common tendency of most of the forward-thinking people, which is, of course, a good cultivation. But when people start to do unlimited shopping, they help to develop three crisis—
First of all, too much shopping causes the products to stock out from the market. You may be lucky enough to buy those necessary things, like sanitizer, savlon, disinfecting wipes, but those who actually need these things may not get the chance to buy.
Secondly, if the products are not stock out from the market, the price of the products will definitely rise about a several folds. It probably won’t irritate the rich people, but the middle class and the poor people will suffer a lot.
Thirdly, unlimited shopping will drive you into a financial crisis. Just imagine, you have bought a lot of disinfectant spray, alcohol pad, a lot of food and medicine, but unfortunately, you’ve affected with coronavirus.
Now you will need money for treatment, but already you have spent a lot to buy excessive things. Does it make any sense? Ask yourself.
5. Shifting Some Money From Monthly Spending May Help A Lot:
Many people have lost their primary job, or they get a reduced salary during COVID19. As a result, their monthly expenses will also decrease at a certain level.
From the past few months, people have to stop traveling, attending concerts, dining out, or going to the movie theatre due to lockdown, so the budgets have skipped over expenses.
If you are smart enough to turn this demerit point into a lifesaving advantage. Though locking into our home feels like hell, sometimes it feels like we are locked into jail, it helps us be safe and store some money.
You can save the money you are about to spend for any unnecessary work and use it later in any emergency situation. Personally, I’ve applied this trick to make the situation better, so it is undoubtedly a cool plan, I guess.
6. Having Multiple Income Source Can Save The Journey:
I was really shocked when thousands of businesses’ operations got to hold and how people become uncertain about when and how much they will get their salary.
When the rate of unemployment is skyrocketing, businesses are shutting down, don’t you think an alternative income stream can change the game?
Having more than one income source will help you handle emergency situations in a much better way. If you lose your primary job, you will still be able to pay your necessary bills by doing a side hustle.
Now you may ask how you can carry two individual jobs at a time? Well, you don’t need to take the stress. You can do a side job or a part-time job, like pet or babysitting, freelancing, or any other online jobs. As long as you are doing a legal job, you are approaching toward a great success.
We cannot avoid the disaster and the changes that happened in our life because of it. The Coronavirus Pandemic has taught us a lot of things, and we have to consider it as the only advantage of the worst situation.
I hope these money hacks will save many people against any emergency, but it won’t give a visible result immediately. You have to cultivate the habits and later, you will definitely feel the merits.