2020 has been a challenging year for all of us. It will be remembered as the year of the pandemic. Historically, it happens every 100 years. It’s just so unfortunate that we experienced it during our time.
Most people didn’t expect it coming so quickly. Even big super power countries are caught off guard and totally unprepared for the havoc brought by this pandemic. They too are struggling to contain the effect.
Millions have lost their jobs. Savings dried up, unemployment figures skyrocketed. A lot of people don’t have savings to spare. Global economies dive into recession. Debts are piling up to continue to support the people.
In good times, we usually get a recommendation to have at least 6 months worth of expenses in savings and emergency fund. In investment, we were also advised to diversify, not putting all our eggs in one basket.
However, this proves inadequate during pandemic. Who would have thought it would last for more than a year? Who would have thought it will ground all flights, put millions of people unemployed and quarantine most of the people leaving all businesses in survival mode. Eventually, most of those businesses end up closing to further cut their losses.
To those with no medical insurance and got hospitalized due to the virus, they have another problem to worry. They may survive the pandemic but left with thousands of hospital bills. During this time we appreciate the types of insurance we can avail to protect ourselves in scenario such as this.
Government around the world reacted by giving aid to their people. But they also never anticipated to give aids for several months. Those impoverished countries can only do so little to their citizen. People are left to tend for themselves and survive the pandemic.
On the other hand, the rich gets richer. They are the one with huge pile of cash on their disposal. While ordinary people are selling their assets at a loss to finance their daily needs, it’s the rich who buys them all for a profit. During sunny days, they are the one who save for the rainy days ahead. Their attitude proves very useful during this time.
The vaccine will come soon to end economic havoc this pandemic brought us. While we are still waiting, we still need to mind our expenses to make sure our savings will last till the end. Asses all your current source of income, assets and other things with value. Make sure that you managed them properly.
Source by Richard Macalintal
#Managing #Finances #Times #Pandemic finance
