2020 has been a tough year for everyone. From the health sector being overwhelmed and to the economies facing recession. Though we’re all devastated by the experience we underwent in 2020, there is a learning curve. That’s in finances.
How do you handle your finances and assets? The pandemic has exposed our weakness when it comes to handling cash. Here are the lessons we have picked on finances for a wiser 2021.
Lessons learned from the pandemic about finances
1. One needs an emergency fund
Financial providers have stressed the importance of having an emergency fund. This is a point that sunk in when the pandemic began. Most people we laid off while others had to foot for their medical bills. That’s the time many saw the importance of having an emergency fund.
However, it’s not too late to set up your emergency fund. The funds should only take a small percentage of your income which is sent to your savings account. The cash is then expected to cover you for the next three to six months in case of an emergency.
During this period, you’ll have funds to sustain yourself until you get back on your feet. If you don’t have any cash, you can request a short-term loan from Robocash.ph. The loans are affordable, but ensure you request what you can pay.
2. Digital payments are better.
Digital payments in the Philippines increased by a greater margin thanks to the pandemic. During the stay-at-home order, Filipinos recognized the importance of digital payments. Instead of piling up your bills due to the restriction. One could use their smartphone to foot the bills. This made sure they didn’t fall behind on settling their bill, which could be a problem in the end. Plus, the digital payment platforms are fast and convenient.
Though there is a vaccine, it has not been administered to the masses. Hence, you are still expected to maintain the COVID-19 restrictions. We recommend using your digital payment platforms and avoid crowded places. This keeps you safe, and you can pay your bills on time.
3. Income opportunities are everywhere.
Having multiple streams of income is ideal, and that is a lesson many have learned from 2020. If you still want to survive on one source of income, you are doomed. There are various sources of income you could opt for to increase your revenue.
Additionally, business have shifted their products online to tap into the larger market. For this reason, various firms are looking to hire freelancers. That’s where you come in and offer your services at a fee.
On the other hand, you could choose to start your online business. Selling your products online exposes your brand to a wider market in the Philippines and the world. This grantees traffic flow and increase in income. Therefore, find something to invest in to bring in the extra cash. You will surely need it at some point and time. For example, you could choose to invest the cash in stocks or channel it to your emergency fund account.
4. Pay your loans on time.
The Bayanihan Heal As One Act was introduced by the state last year. This helps Filipinos to have a grace period of about 30 days on all loans. The lenders adhere to this rule which helps individuals settle their loans comfortably without incurring a lot of interest.
However, it doesn’t mean you can run away from settling your fast loan here: robocash.ph/articles/fast-loans-in-1-hour. The debt has to be serviced in full inclusive of the interest. Hence take time and take with your lender to find an ideal loan repayment plan for you.
The banks are ready to listen, and that’s something we did learn last year. Approach the institution with a genuine reason and don’t withhold any information. This guarantees you settle your loan on time without accruing further interest after the grace period has elapsed.
5. Always have a plan A and B.
Having a plan, A and B, is ideal for you to survive and keep yourself moving. Life is full of uncertainties. You might have a plan to pursue, but what happens if you hit the wall? It could be because of a pandemic, calamity, or even financial constrain.
Thus it is wise to have well cut-out plan which covers all scenarios. The plans act as a fallback plan in case the main plan fails. Besides, you will still be motivated to see the end goal and work harder and smarter.
6. Be Wise about your investments.
When it comes to your investment, you need to be wise about it. Amid the pandemic, the service industry has been heavily affected. This includes restaurants and clubs. That means if you had invested in them, your investment took a nosedive, which isn’t good for.
Hence, diversify your investment to minimize loss. You could choose to invest in bitcoin, Tesla shares, and even stocks. During the pandemic period, those who invested in such portfolios are smiling all the way to the bank.
Don’t rush into investing your hard-earned cash; take time and research the portfolio in question. And remember to spread your investment at all times, don’t place all your eggs in one basket.
7. Budgeting and Tracking expenses
Budgeting is vital if you want to keep yourself afloat. Thus take account of every single coin you spend. This helps to identify the sectors where your cash is washed. Also, take time and draft a well-cut out budget. Prepare a list of all your needs and wants.
Once you have identified the items, stick to the basics and make the necessary cuts. There are apps that you can use to tack and even budget. Download them and install them on your smartphone.
Verdict
We agree 2020 was a tough year that pushed us to the edge. However, as humans, we have been built and design to overcome challenges. We are in 2021, which gives us a chance to work on our weaknesses. This includes financial management, which affects many last years. This is why we have highlighted some of the important financial lessons we need to take into account. Work on these aspects and experience financial freedom.
