The COVID-19 pandemic has not only threatened millions of lives globally, but it has also dealt a powerful blow to the global economy. But tough times like these are also great teachers. Coronavirus has indirectly implied the importance of being financially prepared at all times to withstand any adverse circumstance.
Here are five financial lessons that you can learn from the COVID-19 pandemic:
COVID-19 has shown how important it is to buy health insurance. Life is so uncertain and health insurance can prepare people for situations such as the one we currently live in. You can get a COVID-19 insurance cover for you and your family on the Walnut App in just two minutes.
Emergency fund comes in handy in times of uncertainties like the Coronavirus pandemic. Building such a fund will help you meet your day-to-day expenses in the absence of a regular income or while tackling any financial emergency.
Saving money can contribute towards making you financially independent, providing you with security in the face of emergencies. So, you should avoid spending money on unnecessary expenditures by taking the help of the Walnut app. This Google Editor’s Choice personal finance management (PFM) app facilitates tracking daily expenses and can assist in curbing the spendthrift in you.
The market crash after the COVID-19 has underlined the importance of a diversified portfolio. By investing a portion of your funds in various forms of investments, you can reduce the risk of getting affected by a financial crisis that may arise in the future.
Passive source of income
With the outbreak of the virus, many people are getting laid off from their jobs. Moments like these tell you why it is vital to have a passive source of income such as working part-time, freelancing, producing online content, renting properties, etc.
The financial lessons learned from the ongoing adversity could prepare you in dealing with future crises in a better way. Increase your financial literacy to put yourself and your family in a better position to face potentially tough times in the future.