2020 has been a challenging year for all of us. It will be remembered as the year of the pandemic. Historically, it occurs every 100 years. It is so unfortunate that we have experienced it during our time.
Most people didn’t expect it to come so quickly. Even the countries of the great superpowers are caught off guard and totally unprepared for the ravages caused by this pandemic. They, too, are struggling to contain the effect.
Millions have lost their jobs. Savings dried up, unemployment figures skyrocketed. Many people don’t have savings to spare. Global economies plunge into recession. Debts pile up to keep supporting people.
In good times, we usually get a recommendation to have at least 6 months of spending on savings and emergency funds. In investing, we were also advised to diversify, not to put all our eggs in one basket.
However, this is inappropriate during the pandemic. Who would have thought it would last more than a year? Who would have thought it would ground all flights, put millions of people out of work, and quarantine most people, putting all businesses in survival mode? Eventually, most of those businesses end up closing to further reduce their losses.
For those who are uninsured and hospitalized due to the virus, they have another problem to worry about. They may survive the pandemic, but they were left with thousands of hospital bills. During this time, we appreciate the types of insurance we can use to protect ourselves in a scenario like this.
Governments around the world reacted by helping their people. But they also did not anticipate giving aid for several months. Those impoverished countries can do very little for their citizens. People are left to take care of themselves and survive the pandemic.
On the other hand, the rich get richer. They are the ones with a large amount of cash at their disposal. While ordinary people are selling their assets at a loss to finance their daily needs, it is the rich who buy them all for a profit. During sunny days, they are the ones who save for the rainy days to come. Your attitude is very helpful during this time.
The vaccine will arrive soon to end the economic ravages that this pandemic brought us. While we’re still waiting, we still need to factor in our expenses to make sure our savings last to the end. Evaluate your entire current source of income, assets, and other things of value. Make sure you manage them correctly.