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April 21, 2020

3 Money Lessons to Take from COVID-19

Category: Manage Finances
There are many things we are all having to relearn during this pandemic.

While it was certainly challenging to begin with, it seems as time rolls on, and Australia seems to be successfully combating the spread of COVID19, more people are learning very positive lessons about life, business, and money from this environment. Here are three that I see as key lessons that have appeared very early on, as the world is gripped with the lockdown.

Number 1: Cash is king

Whether as a business or an individual, the big lesson is that it is crucial to have cash at hand. The liquidity cash gives needs to weather storms for both everyday life and business. The bigger reserves you have, the more confident you can be about your future, and take the time to look for opportunities to pivot and regain ground once social distancing measures are over. At least six months of savings to cover expenses is a necessity in the new world order.

Number 2: Debt can take you down

When things are going well, as they have been in our economy for well over 20 years, it is easy to see debt, with low-interest rates, as a key part of building wealth and getting what you want.

Many investment property holders have been left in a difficult position as a consequence of the pandemic, with their income slowing or stopping, but their debt still needing to be serviced. While not all debt is bad, the lesson from the pandemic is to keep light – the lighter the financial load you have to carry, the easier it is to survive.

Number 3: We can all live with less

While at first, it was almost maddening to slow down and not go on holidays, work trips and shows/concerts and theatre, it has now become obvious that not only can we survive without spending and doing as much, we can also save money and spend on what’s necessary, not just what is nice to have.

While I am not suggesting a life with no experiences, it is clear that we can all look at consuming less – which helps both our financials and the planet as a whole.

There is no denying this environment has held many challenges, there have also been some good and valuable lessons, which we should take with us into the future, to be better off in the long run.

Until next time,

Vanessa

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Each day I wake up excited to inspire everyday people to open up and take control of their money, regardless of their history, goals, or savings amount. About Vanessa >>

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Authors

  • Vanessa Stoykov
    Vanessa Stoykov

    Vanessa has been passionate about writing and storytelling since her days of hiding under the doona with her torch to read after bedtime.

  • Kathy Skantzos
    Kathy Skantzos

    Kathy is a yoga-loving world traveller who also happens to moonlight as a business journalist and writer. She was the finance editor of news.com.au and the Managing Editor of CEO Magazine (Asia) before joining Vanessa and the evo squad.

  • Shayne Sommer
    Shayne Sommer

    Shayne is second dan black belt in karate, and a budding romance writer with a difference. Why? Because she writes romance stories that always have a money lesson.

  • Antoinette Colbran
    Antoinette Colbran

    Specialising in stories for 50+ women, Antoinette draws from her own experiences to help other women avoid the pitfalls and see the benefits of understanding their money situation.

  • Michael Crooks
    Michael Crooks

    Michael Crooks is a more than 20 year writer and documentary maker who has worked with Time Inc and the BBC, who wants to expose the truth from real victims of financial crime to help others avoid their mistakes.

  • Kim Payne
    Kim Payne

    Kim Payne has spent the past three decades as a speaker, trainer, business coach, and consultant in financial services. She has worked with and transformed hundreds of brilliant, educated, high achievers who are chronically under-living.

  • Rebecca Pritchard
    Rebecca Pritchard

    Rebecca Pritchard is on a mission to help men and women achieve equality when growing a family.

  • Antony Perring
    Antony Perring

    Ant is a writer, designer and business builder with a love of food, design and good living. He writes on food and money in an easy to do way.

  • Julie Hyde
    Julie Hyde

    Julie Hyde is a leader of leaders. A disruptor and a powerful people enabler who empowers leaders to make big things happen.

  • Joshua Pennell
    Joshua Pennell

    As a Dad to four kids and a business owner, Josh is passionate about family and finances and is known as The Family Finance Guy.

  • Sid Lal
    Sid Lal

    Sid is a serial entrepreneur who set up his first business when he was still in University. Since 2009 he has been heading Bruce Clay, first in India & more recently in Australia.

  • Lou Johnson
    Lou Johnson

    Lou Johnson believes in the power of sharing stories to build empathy, understanding and connection. Growing up surrounded by books and storytelling, alongside her drive to make a difference led her to a highly successful career in book publishing.

  • David Rae
    David Rae

    Dave is a CERTIFIED FINANCIAL PLANNER® professional and has been a financial adviser since 2003. He works with a range of clients and has a strong focus on ethical and sustainable investing.

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