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The pandemic left a mark on us all, especially financially. Keep reading to find out how to prepare yourself for future uncertainties.
The pandemic has turned the entire world upside down. At a point, everything stopped, and we had to go into quarantine. The pandemic forced us to change how we used to behave, act, and live. Suddenly something as natural as hugging someone was one of the deadliest things you can do to yourself and your family. The new normal that we are living as of now is hard to adjust to, and justifiably so. This helps us to stay safe and keep everyone around us safe by lowering the curve. The mental, economic, and social trauma that hit everyone was truly heartbreaking. However, the immediate crisis for many was (is), ‘How will I survive this financially?’ Uncertain times created by pandemics or any other crisis directly impact our way and standard of living. Stable income does not seem stable at all; just like the uncertain economy, our financial stability becomes uncertain as well. The COVID-19 pandemic has essentially changed our day-by-day lives, making many ponder and reexamine old spending habits.
One of the biggest lessons that many have learned is that there is no such financial security if you depend on your one job. Instead, we are better off generating passive income streams. What does it really mean? Having a passive income is not about juggling more than one job. It is a smarter way to make small amounts of money through low effort. That way, you are not dependent on your only target of income. This pandemic has proven that depending on your main target of income is just not safe anymore.
Passive income does not mean the shady ones that give passive income a bad name. There are many new and creative ideas, channels and opportunities. Thanks to the internet, you have a range of work-at-home opportunities to generate a consistent passive income. You can be an office worker by day and a writer by night. The pandemic has been hard on us emotionally, mentally, and financially. And when financial security goes down, it affects mental health to go down as well. Here are 3 financial lessons that can help us all along now and in future.
1. Consider multiple streams of income
There are millions of ways you can generate cash from multiple targets. It is a crucial way to make sure you do not get caught off guard. Some examples could be to start writing if that is what you have been wanting to do for a long time. Then there is rental income, which may be a little challenging due to the pandemic, but with minimal effort and a little management, you can do it. A little investment goes a long way. Then there is affiliate marketing, where bloggers, influencers, and website owners promote an outsider’s item by linking it to their website or web-based media account. Products from Amazon, eBay, Awin, and ShareASale are among the bigger names, as well.
What’s more, YouTube, Instagram and TikTok have become immense stages for those hoping to grow followers and promote products. You could likewise consider growing an email rundown to make people notice your blog or, in any case, direct individuals to items and services that they may need. It is great to make something extra with minimal effort. These are just examples; you can literally do anything that interests you-like investing in stocks or high-yield savings accounts. You can even start an online cooking and baking class on Instagram. The point of all of these is financial security. It takes time to be famous and to build a sustainable passive income but one has to start some day, if these words inspire you or someone else’s; don’t wait, the point is to start and stay consistent, the results will follow.
2. Don’t Panic, but Start Saving
Remember Rebecca Bloomwood, the girl in a green scarf? She was not going through a pandemic, yet she faced the worst-case scenario of being in debt—the perfect example of being broke. ‘Confessions of a Shopaholic’ not only makes our hearts flutter for Brandon and swoon over the fashion, but it also teaches us an important lesson. Save as your life depends on it. In a way, your life does depend on savings. So start early. You see what happened because of the crisis that we are going through, so saving is no longer an option; it is mandatory.
Many of us are bad at savings and want to live our life to the fullest, however, financial security can save us from an uncertain crisis. To make savings easier, it is best to label it as an emergency fund that can be used in situations such as an economic downturn, epidemics, and pandemics. Again internet comes to the rescue, there are many free courses and advice around that can help you take control of your budget and help you increase your savings.
3. Curbing Expenses And Learning To Live On A Budget
Many during this last year have realized that they do not have the luxury to spend as they please. It is time to be a little responsible. Cutting on expenses does not necessarily mean living a boring life. You can choose where to spend, like buying a used car instead of getting a brand new one. When cash is streaming freely, it’s simpler to go about without a spending plan. However, when your pay is scaled back, each dollar out of nowhere feels somewhat significant. It is easier to have a planned budget. It can begin with a small step as keeping track of where you spend and just keep a record on an excel sheet or a notebook, whatever works for you. Every change begins with the first step – awareness.
Saving can begin when you are aware of where to spend and where to step back. That is the reason a large number of us have whipped out our spending plans without precedent for quite a while during the COVID-19 emergency. On the off chance that you’ve as of late begun utilizing a financial plan again, good job! You are on the right track. Living on a careful spending plan can feel, from various perspectives, like getting a raise!
We expect with the vaccine finally out, we will soon see better days. The lost jobs will be back, the restaurants and the travel industry will thrive again. But it is always good to be prepared because there is no telling when the next Black Swan event will happen. You essentially couldn’t say whether or when they will occur. These are only a couple of ways you can get ready for the unforeseen. So stay safe and stay vigilant.