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4 Financial Lessons to Learn from COVID-19

4 Financial Lessons to Learn from COVID-19

If there’s one thing everyone ought to have learnt from the coronavirus pandemic, it’s that preparing for emergencies should never be underestimated. This is certainly true from the perspective of healthcare, but the pandemic has also shown that it’s true for finances. Unexpected crises can place a huge strain on anyone’s budget. Which is why it’s so important to spend wisely and save money as a way of life.

 

Always Weave a Safety Net:

The key to preparing for financial uncertainty is prudent money-management. Business Expert Lance Cothern advises that “By building up a savings buffer—called an emergency fund—you can be prepared to pay for unexpected emergencies without having to turn to credit card debt, family loans, or other borrowing options that create unnecessary stress. While an emergency fund won’t solve all your money problems, it’s a great start to getting your finances headed in the right direction.” Here are a few tips on how to financially prepare for big emergencies:

 

  1. Don’t Lose Track of Debt: When times are good, people borrow money without a second thought.  When times get tough, paying back that money is a nightmare.  Be careful not to take on so much debt that it sets you up for failure when crises take place.

 

  1. Prepare for the Worst-Case Scenario: Proper financial planning is only possible with brutally honest brainstorming.  If you don’t take the time to contemplate what would happen during hypothetical disasters, they will always blindside you when they occur.

 

  1. Start Saving Now: Procrastinating your savings might make things convenient in the present, but having no savings leaves you exposed to hardship in the future.  The sooner you start saving out of routine, the sooner you can expect to have peace of mind.

 

  1. Learn How to Make Utilitarian Decisions: Emergency situations always produce ultimatums.  They always put people in a position to make difficult decisions.  If and when this comes about, it’s a lifesaver if you understand how to be utilitarian.  Make choices in a way that achieves the greatest possible good, for the greatest possible number.

 

Conclusion:

Being responsible with money never sounds like fun. It often requires sacrifice and self-denial. Sacrifice which is always hard to justify when hard times seem unlikely. But that’s exactly when caution should come into the picture. If you’re willing to think outside the box financially, that’s basically a guarantee that you’re taking steps to secure your future. COVID-19 might have caught the world off-guard, but it should also serve as a lesson on how to move forward with your money. Strike a balance between spending on personal comforts, while also protecting yourself through sacrifice and savings. If you like what you just read from our blog, you’ll love the various informative courses, workshops and events listed on our websites and social media. Whether you’re interested in personal development, or overall improvement of your business, give us a call at 1 (888) 823-7757 to find out how The RISE Academy can help you break past your daily struggles and start soaring in success.