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COVID-19 has had an economic impact that has changed our lives. More now than ever we must secure ourselves financially.
Are you looking for ways to make something positive out of this crisis?
One way to do that is by having a financial plan. With having a financial plan, you can have more control over your finances and future. Important to realize, over 35 million people have filed for unemployment. Above all, job loss has been one of the greatest losses in U.S. history.
In addition, businesses across the world have closed their doors indefinitely, some permanently. Some people will be impacted for years to come.
But, this is the time to get your finances in order and overcome the fear you may have.
Ultimately, fear arrives when you are outside of your comfort zone. And right now we all are outside of our comfort zone. But, you have to push through the tough times to make sure you aren’t holding yourself back from trying something new.
COVID-19 has created a new normal. Below are 7 things you should learn from the pandemic so you can learn how to handle your finances during adversity.
1. Get on a budget
If you haven’t already created a budget, then right now is the time to start. However, if you already have a normal budget then great, you’ll just need to focus on altering your budget to accommodate your urgent needs.
At the end of the day, the budget allows you to control your finances and tell your money where to go. Your budget should focus primarily on the four main areas of your life that are absolute necessities. These necessities include your food, utilities, housing, and transportation.
If you are able to stay fed, have a place to sleep, the lights are still on, and you can get yourself to work (if applicable) or the grocery store that frees up some mental space to function. After taking care of those urgent needs you can then begin focusing on the next tier of important items such as cell phone bills, internet, and contributing to your emergency savings.
The economic impact of COVID-19 is a great reason you must prepare for the unknown and a budget will be your guide.
2. Take control of your finances
During a time of crisis you must use faith over fear. If you start doing this now, you will be prepared for the next crisis. Ultimately, your finances are the most impacted during a time like now.
Challenge yourself to get out of debt, stay out of debt, and save more money. Indeed, this will give you a sense of financial security to have more control over your finances.
As stated in Romans 5: 3-4 (ESV), “Not only that, but we rejoice in our sufferings, knowing that suffering produces endurance, and endurance produces character, and character produces hope.”
At the end of the day, we all go through things in life. But, we have to determine how we are going to get through it.
3. Get out of debt
First off, we made a ton of bad financial decisions but we had to learn delayed gratification. That is to say, it required us speaking by faith and not by fear.
Isaiah 55:11 (ESV) says, “so shall my word be that goes out from my mouth; it shall not return to me empty, but it shall accomplish that which I purpose, and shall succeed in the thing for which I sent it.”
In other words, think about your situation on the positive side and not the negative by telling yourself “you can get out of debt.” Certainly, learn from your financial mistakes so you can move forward living a better life.
4. Embrace change from the economic impact
Change is painful. This is a wonderful opportunity to utilize the fear, anxiety, and stress you are feeling as your starting point to change your finances and say never again.
As Winston Churchill stated, “never let a good crisis go to waste.” Before you can make a change, you have to recognize the economic impact the pandemic is having on the world. Take advantage of this time to make the necessary financial changes that will lead you to financial freedom.
Above all, you have to live on a budget in order to invest in your future. Take a moment to imagine being debt-free and having money in savings for the next economic downturn. We all must take this approach to allow us to be better prepared.
Ultimately, there are better days ahead.
5. Make adjustments when necessary
Wouldn’t it be nice to wake up everyday with no worries in the world? Of course it would! However, that is not reality. This time period has shaken the economy and required all of us to make adjustments on the fly. That is to say, for most people what’s familiar is safe and the unknown creates fear.
COVID-19 should feel like a wake-up call to make you want to create new habits. We all have things we can improve on with our finances and in life. In fact, this pandemic has revealed them even more. To clarify, find the primary areas where you have room for growth and get focused on becoming a better you.
6. Have multiple streams of income
One of the biggest lessons learned from COVID-19 is to have multiple streams of income. Adding additional income will help no matter how big the economic impact is.
If you are paying down debt, additional income can be helpful for making minimum payments or making significant strides in eliminating debts. If you are out of debt, additional income will be helpful for increasing your clutch fund or investing.
That is to say, there are a number of ways to have multiple streams of income.
If you are quarantined or feel more comfortable at home, there are numerous opportunities available from home. Take this time to do some spring cleaning. Look through those old closets and drawers and pack up any unused/good conditioned items and get them online to sell.
Some additional online income streams include focus groups, online tutoring, and surveys.
Of course, our favorite is starting a blog! Check out our free introduction course that will help you get started. If you’ve ever wanted to start a blog, this is the perfect time. Bluehost is offering you the chance to start your own blog for only $3.95/month!
7. Have a plan for financial security
First off, simply working without a plan gets you nowhere. Focus on making sure you have a financial plan that aligns with your dreams and goals. COVID-19 has had a huge economic impact, but you also have the ability to put energy into bouncing back from the uncertainties.
Ultimately, financial security is a lot more than just having money. You must focus on securing you and your family in many ways. COVID-19 is not the last crisis or uncertain time you will experience.
There can be crisis moments that relate to everyday life. Identity theft has become a huge issue in today’s society and scammers are taking advantage of this during the COVID-19 pandemic. Check out IdentityForce to make sure you and your family have identity protection.
Another key area is life insurance. Visit Haven Life to get some term life insurance if you don’t have any. Don’t keep putting it off and make sure you and your family are prepared for the unexpected.
Final Words: Economic impact of COVID-19
This is a great time to make a positive out of a negative. There are many valid reasons to be unhappy and think this time is never going to end. However, you have an opportunity of a lifetime to make some changes for the future. And, when you realize the opportunity that you have you will approach it a little differently. We all go through pain, but get a reward for yours!
What do you plan to do now that you’ve been impacted by COVID-19?
Are you going to rise again and take your life and finances to the next level?