The Covid 19 pandemic took the world by storm early 2020. The world wide lock down caught a lot of people off guard. The financial consequences that followed had far reaching consequences that many could not imagine.
Nevertheless, that was a year ago. Its time to pick up the pieces. That being said, its also time to contemplate the key takeaways from the seemingly devastating year that was.
Lesson 1: Diversification is key
Whatever anyone was doing before the pandemic hit, one thing is clear now: it cannot be the only thing you do for the rest of your life.
The pandemic forced us to explore all of our God given talents. If you were a person who talks for a living and people are no longer listening, then maybe it’s time to explore your ability to write…or to cook, or to even clean someone else’s backyard.
Lesson 2: Saving for a rainy day is not just some empty idiom
…and that’s because that rainy day everyone talked about but never expected to arrive is actually here…pouring in torrents for the last few months.
Now there’s no need for a financial advisor to tell you why you need to set up an emergency fund – the need is starring you in the face while the lockdown won’t let you go to work.
Those who came up with all sorts of excuses why they don’t have the means to set up an emergency fund now realize the difference between needs and wants…and how the latter could have been delayed and the money spent could have been saved.
Lesson 3: Passive income matters
As a matter of fact, the more sources of passive income you have, the better. Another lesson from our financial advisors that’s only sinking in now. Now that you may have lost your job and, while you look for another one, you need some money to tide you over. Having a small business on the side wouldn’t hurt. Having some investments in other businesses, or even the stock market, would have helped.
Lesson 4: Health insurance is a necessary investment
My insurance agent once told me one of the biggest challenges to selling insurance is getting people to realize the benefits they pay for. People generally don’t think far ahead enough to consider emergencies. A lot of people think insurance is an unnecessary expense…until they are hit with a 6 digit hospital bill that could wipe out whatever money they have. Lets face it, the pandemic season left a lot of people in the very expensive accommodation of a hospital bed.
Lesson 5: Where there’s life, there’s hope
If you’re one of the people who survived 2020 unscathed, take a bow. If all your family and friends are alive and well, thank whoever your God is.
2020 is the year that was, 2021 is the year now. Instead of regrets for past mistakes, its time to look forward with hope and make the necessary amends to our lifestyle.
Until the next pandemic….not!!!
References:
https://www.nerdwallet.com/article/finance/life-and-money-lessons-from-the-pandemic
https://www.fidelity.com/learning-center/personal-finance/financial-lessons-from-covid19
A.M. Llovit 