It’s been over 3 months since the lockdown announcement was first made in India due to the ongoing Covid19 crisis. Not only has it endangered millions of lives, but it has also created fractures in the global economy. With another lockdown approaching us, here are 3 financial or money lessons that the lockdown has taught us.
1. Create an emergency fund
Even financial experts believe this pandemic has illuminated the pressing need for emergency funds and cash reserves. It has become imperative for each and every individual to build an emergency fund. The thumb rule is to have three to six months’ worth of living expenses saved. If you’re able, save something now, so you can create a habit to put money aside every month- even if it is 500 INR, to begin with.
2. Plan your purchases
Preparing for an emergency also affects your kitchen pantry. Stocking up with a plan helps you pace out your pantry all the while keeping your expenses in check. While there’s no need for one to hoard, it may be beneficial to prepare in case other people once again panic shop for food and essentials at the onset of future emergencies.
You may want to use savvy shopping strategies for those necessary items that you’ll have to continue to purchase. That may include buying bulk quantities at a lower price per piece, using products more sparingly or applying coupons and opting for cash backs in an attempt to save money.
3. Shift your spending patterns
Since the lockdown started, monthly expenses started to look different. Ordering necessities have had a serious impact on monthly budgeting plans as well due to product availabilities and limitations. Many people have had to completely change certain habits or hobbies that involved stepping out, such as travelling, dining, planning trips, going to movies, etc. Hence the budgets have skipped over these expenses that would otherwise be a recurring spend.
Some of the routines that have been made due to the lockdown might retain even after the lockdown eventually lifts. You may choose to hold off on the extra moolah when ordering something exotic and try to experiment that dish at home instead. If these habits stick, you will possibly be able to put aside more money for a rainy day, more than you were saving before the lockdown began.
Through these golden lessons, you can say for certain that living through a pandemic has created a need to raise awareness about money management. We are constantly learning something new every day, and it’s high time we educate ourselves financially so we can know how to manage our own money better and more effectively.
