There is no doubt that COVID-19 has forever changed the way we live and think. Most of us now have accepted that some things will never be the same, and the new normal includes more change and more flexibility in how we live our lives.
And, of course, one of the biggest things that have changed since the virus began is the way we view and use money. While so many have lost their livelihoods and are suffering real financial hardship, others are worried about future income and what the world will look like even once a vaccine is found.
When it comes to money, no matter what position you are in, it is good to change your thinking and attitudes now, to prepare for whatever comes next. Here are three ways to think about your money in the new world we are living in.
1. You have enough.
You don’t need those new shoes, clothes, camping equipment, or whatever else it is you have been looking at. If you think about the fact that all of your possession used to be money, have a look around your home at all the things you have that you don’t use, or would rather have the money back on. Now is a time for less rather than more. Make use of what you already have and turn off apps and social media if it makes you want more.
2. Cash is king.
You need savings for security. It is no longer enough to have a credit card for emergencies. You need cold hard cash. Which may mean selling things you no longer need, or not going on dinners out and holidays, in order to save. Whatever you have to do, get yourself a cash savings pot and guard it. If these times have shown us anything, it is that change can come at any time, and you need to be prepared.
3. Get rid of credit and live in the cash economy.
No more buying things on AfterPay and lines of credit that you need to pay back. If you don’t have the cash for it, don’t buy it. I know that can feel harsh, but the harsher reality is spending years of your life working to pay back things you already have. Make sure you look after the future you as much as you of right here and now.
Sometimes it feels like most things are happening outside of our control. These three new ways of thinking, which I have adopted and are giving me peace of mind, can at least give you some control over your financial future, via the decisions you make right now.
Until next time,