For a couple of years now, people have been living in a world where surgical masks have become a major life-saving armour against the pandemic. And from the way we see the world today, this pandemic has clearly brought with it a whirlwind of evident changes in every aspect of our lives. We’ve been working within the four corners of our homes, barely surviving our businesses, cancelling trips and even falling in distant lines at the grocery store for everyone’s safety.  

Despite all the inconveniences that this seemingly-constant pandemic has created, there’s still one thing to be grateful for besides keeping ourselves and our families healthy and safe. Perhaps the best thing that ever happened during this pandemic is that we get to learn at least one thing or two from it. 

Some of you probably took this quarantine period as an opportunity to study how well you handle your money in the midst of a growing crisis. We all saw first-hand how this pandemic has impacted not only our overall health but also the health of our finances. Here we talk about a few money lessons we learned and are still learning from the COVID-19 pandemic. 

The reason why it pays to digest all these essential lessons is that this could help us find ways to improve our personal or business finances during times of uncertainty such as this. And when we do, it will be easier to survive a new era in which we can all apply all the lessons that the pandemic has virtually taught us. Here are just some of them:

Never take things for granted

Your personal savings and source(s) of income may be stable right now, but as the pandemic illustrated, nothing in this world seems permanent. When people had to lose their jobs and some businesses had to close down, we’ve realised more than ever the importance of smart and responsible spending, treating every penny as our last. The health of finances greatly depends on how well you manage your earning and spending habits. That’s why spending less than how much you make may help you thrive and even reach your biggest money goals during the pandemic.

Earning extra money is rewarding

For those who underwent a no-work, no-pay scheme due to this COVID-19 crisis, know that you still have other options to earn money from. Take the time that you spend at home as an opportunity to find ways on how to diversify your earnings. This pandemic has definitely taught us the importance of having more than one source of income to survive the crisis. Whatever business you might have in mind, know that you can always take advantage of small business loans to help optimise your working capital.

Emergency funds are more crucial than we think

A lot of people have probably entered this time of crisis with no sufficient emergency fund saved up. Perhaps the number one reason why some people are always caught up in a cash flow problem is that they fail to set aside their savings from unexpected expenditures. Hence, when a disaster strikes, they tend to fall back on their own personal savings when it should always be the last resort. 

Another life-changing lesson from COVID-19 is that we can never be too prepared. Learning to separate personal savings from emergency funds helps prepare us for any unforeseeable costs so that we won’t have to use up our savings or credit cards. Do not wait for another crisis to happen before you start building up the emergency fund that will cover your expenses should health emergencies, God forbid, take place in the future. The general rule is to save a specific amount that will provide enough for your living expenses within 3 to 6 months of having no adequate source of income.

Use credit cards wisely

Some credit card providers are setting interest rates a bit lower and extending payment dues in light of the ongoing pandemic. But it doesn’t mean you can rely too much on credit cards alone. Your credit cards should not be the only source of money you have, especially in the time of the unknown. While it’s tempting to max out your credit cards, an important lesson to bear in mind is to keep your debts light and manageable. COVID-19 itself has already given all of us a hard time in some way, so we can’t afford to face another problem by being buried in our own debts. Make sure you only use your credit card for purchases that you can afford. Most importantly, make on-time payments and pay off your balances in full, if possible, to avoid penalties.

Maximise household skills to save money

By staying at home, we can save lots of money if we learn to cook our own food and do other household chores independently. Thanks to the power of social media, this quarantine has triggered many of us to flex our love for cooking. Instead of ordering food online, people are now practising their cooking skills to save money from expensive delivery fees.

Final Thoughts: Planning Can Go A Long Way

We all hope that this pandemic ends as soon as possible and that there won’t be another wave in the future. The experiences we’ve had from this whole COVID-19 era are just too much to bear, and we really hope not to experience them again. But that is the point of learning from our own experiences. This outbreak has served as a wake-up call to everyone—that it’s not too late to plan ahead because we simply don’t know what the future holds. Looking back to the lessons we learned from the pandemic will help us become more financially ready for the unknown.