It has been a year since the first case of Covid-19 hit the shores of our country and we went into lockdown. This seems like a good time to reflect on the previous year.
Whilst we may never get used to a pandemic and its many restrictions, there are aspects of it that we can learn from.
The year 2020 came with a lot of lessons that we can take into the new year.
Financial lessons, being one of them, have been intense but hopefully fresh in memory to take along with into a future of new ways of doing things. Besides evolving always comes with growth.
Here are some financial lessons that got us through the past year that we can use as a point of reference:
We have gone back and forth between different levels of lockdown. It is important to be able to be flexible. Your budget needs to be flexible to adapt to any changes that are happening in your life. There is a lot of panic in the air. Do not panic or make money decisions out of panic.
Review your investments
What worked then may not work now. Review your current investments and look at new areas where you can invest. Learn about new trends.
Ensure your assets are insured. Remembered to be kind to yourself financially and otherwise. We are all trying to figure out what works in the new normal.
Pump up your emergency fund
Living in uncertain times means that there could be an emergency any time. After looking at your financial goals, increase your emergency fund and clarify what an emergency means to you.
Create multiple sources of income
A lot of jobs were lost and businesses had to shut down. You may have been affected by retrenchments or shutting down a business. What the previous year has taught us is that we need more than one source of income. It is time to go back to the drawing board and strategies on how you can create your sources of income