Post COVID-19 finances — whatever your age, here’s how to survive the new era
One of the main concerns on everyone’s mind right now is the financial impact this virus will leave in its wake. No matter how well off you are — or aren’t — it is safe to say that everyone’s financial well being is directly linked to a business, whether as an employee, a business owner, or as a consumer.
It’s all very well to preach about putting in 10% of your paycheck for a rainy day, but let’s be honest with ourselves — how many of us have done it? Even if you have done so, if you were going through a bad patch, this is probably the last straw.
‘Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.’ — Dave Ramsey
This is one thing that I am learning the hard way. I’ve said it once and I’ll say it a hundred times — it’s not about forgoing your daily caffeine fix, there’s no need to be miserable for parsimony’s sake, but listen me out here: it’s easier to cut expenses than it is to increase your income. True?
There are only so many hours in the day that you can work, and I’m not even tapping into the argument of working smarter vs working longer.
And even if you did manage to earn more money (and I’m all for it), you will invariably find that your expenses will increase too.
Another pearl of wisdom from Dave Ramsey is that “Just because you can make the payments, doesn’t mean you can afford it.” How many times have we received a pay rise only to be lulled into a false sense of security and spent even more? How many of us actually transfer that increase into a savings account (not to say anything of investing it)?
Be honest with yourself — how possible is it to live a more frugal lifestyle? The things that we take for granted — such as subscriptions, cable TV, weekly manicures — are all luxuries which can really be reduced, and it’s surprising how quickly we can adapt.
Grocery shopping — how many times have we been tempted to buy stuff that’s going for half price when we don’t really use it at all? Unless it’s something that you can really use, don’t be tempted. It will only take up space and…
