As I am writing these lines, we are into the 8th month of the pandemic. And as this year has only 9 more weeks left before coming to a painful end, it doesn’t look like the pandemic would stop there. We are in for a long and rough ride ahead with several more months to get through.
But every challenge bears also opportunities, and during these 8 months, there were already plenty of lessons for us to remember for the future ahead. Especially when it comes to our jobs and finances.
Lesson 1: There is no such thing as job security
The first lesson was to recognize that there is no such thing as “job security” when a real crisis hits. Given how our economies are connected and intertwined worldwide, any crisis that comes on a global scale is likely to effect employees and business owners everywhere and in almost every industry.
This pandemic showed us how quickly companies find ways to reduce staff counts and reduce payrolls. Whether people get furloughed, put on unpaid leaves, or forced to accept pay-cuts. When a crisis hits, people suffer. So one would do better preparing for such an eventuality.
Lesson 2: Emergency funds make sense
I wrote about emergency funds before, but let me repeat it again: Everyone should have an emergency fund that covers 3-6 months worth of expenses. More cautious types might even consider saving for up to 12 months.
Having an emergency fund won’t negate your worries when a crisis hits, but it will certainly ease them. Knowing that you don’t need to panic when the next rent or utility payment is due is already a huge relief. Not having the immediate pressure or struggle to afford your regular daily, weekly, and monthly expenses will keep your head clear and allow you to focus on finding the right solution to the challenge at hand, without the pressure or need to compromise on less adequate opportunities.
Lesson 3: One source of income is not enough
It’s good to have an emergency fund, but to increase your defenses even further, you should also not rely on a single source of income. Creating multiple income streams is a critical step not only for those who plan to retire with a better standing but also for those who want to prepare for emergencies.
Lesson 4: Be prepared to help others
If you have an emergency fund, additional sources of income, and are even able to keep your job while a crisis is spreading across the globe, then you have generated a unique opportunity for yourself: You can protect yourself and those in your care, and you might also be able to support others.
A friend in need, a local shelter for the homeless, or an orphanage. There is always someone in need. Whether it’s money, food, or clothes. Giving feels good, and even more so in such a difficult time.