5 Important Financial Lessons to Learn During Lockdown
At the height of the Coronavirus Crisis, where some are locked down in their homes unemployed and uncompensated, comes the celebration of Financial Literacy Month. It is ironic yet enlightening. Enlightening in the sense, that crises like these could happen even if we are at our most vulnerable. For those people who came financially unprepared for the month-long lockdown, here are 5 important financial lessons to learn during a lockdown.
Crisis will Strike Anytime
We are caught red-handed by the 2-day notice before lockdown. For the average worker, there is little to no time to save up for groceries or borrow money from someone. That is why financial experts recommend having an emergency fund that will last for a month or two before saving up for anything else. This emergency fund should not be touched at all times unless, of course, if there is a medical crisis.
Crisis Could Take a Long Time
In the Philippines, the lockdown is set for a month. We all hope that after a month, everything will fall into regular days. Although, there’s a really high chance that the situation would worsen. The number of cases is rising exponentially. About a month ago it was 8, now, it’s over a thousand. Not to be a bummer, but let’s face it. If no intervention is taken, this crisis could take a long time.
No One Can Really Save Us
No one can really save us but ourselves. In times like these, most are busy with their own finances. And we can’t really expect anything from other people because we are all experiencing the crisis. That is why the rule after the emergency funds involves paying off your debts. In doing so, you are clearing up financial obligations that might burden you during crises.
The Poor Will be the Most Vulnerable
Posts online about drivers and vendors still going out during lockdown stirs up the emotions of many netizens. These drivers and vendors live on from daily wages. Hence, they can’t bear to stop even for a day because they won’t have food to eat the next day. This concept is similar to people living from paycheck to paycheck. Living like a millionaire during payday then having nothing for later is a quick approach to being one of those people that are most vulnerable during the lockdown.
Failure to Prepare is Preparing to Fail
The best strategy to defeat any crisis is through preparation. Even if it is April fool’s, don’t fool yourself into thinking that the YOLO life (You Only Live Once) is not something you’ll regret. Even without a lockdown, our bodies weaken as we grow old.
Therefore, we need to prepare ourselves financially to have a secure future. How do we prepare? We fix our finances. We save emergency funds. We educate ourselves about investments. Because failure to financially prepare is preparing to fail at life.
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