Financial Lessons From The Pandemic
Sometimes it takes a global pandemic to confirm the precariousness of your financial position.
According to the World Economic Forum, COVID has caused an economic shock three times worse than the 2008 financial crisis. Even if a vaccine was discovered tomorrow, it will likely take months, if not years, to repair the devastation to the economy. This is a hard fact that we must face.
But instead of waiting for the government, rich relatives, or anyone else to offer assistance in these trying times, it’s incumbent on each and every one of us to buckle up and work towards a better future for ourselves and our families.
Further:
Stop beating yourself up over past mistakes and create a financial plan today about how you will create financial security for your family tomorrow.
The faster we let go of our past mistakes, the more time we get to productively shape our future.
The best remedy is to shake-up your financial management. Always purchase things with a credit card? Use cash. Track your spending on a spreadsheet? Write them down in a notebook. If your regular financial practices aren’t working, try something new.
This morning, I took the time to download the YNAB app, and spent over an hour learning the software, linking my bank accounts, and creating a budget for November.
But it wasn’t just the tool I decided to change. I also decided to create more categories in my budget, which would force me to really break down the nature of my expenses. Instead of using one big category like “food,” I broke the expenses further to “groceries”, “take-out” and “coffee.”
I admit, this morning’s project was a daunting task — the app is very particular and requires significant customization to accommodate individual preferences — but it helped renew my desire to live a more frugal lifestyle.
The process of working out my budget, realizing I’ll have to match every transaction from my bank accounts to a specific category, has already reminded me that parting with one’s hard earned money is no frivolous act.
There is no doubt that times are tough. But don’t let that distract you from the lessons that can be learned. We can use this time to regroup, focus on our savings, and ensure that we face the next financial crisis stronger than ever. Don’t let this crisis be something to endure — use it as an opportunity to build a better future.
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Thank you,
Jennifer