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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Authors

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 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 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

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 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 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 is on a mission to help men and women achieve equality when growing a family.
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 is a leader of leaders. A disruptor and a powerful people enabler who empowers leaders to make big things happen.
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 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 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

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.
Natallia Smith

Natallia specializes in assisting pre-retiree single women—whether they are never married, widowed, separated, or divorced—understanding deeply the importance of financial stability during life's pivotal moments such as separation, divorce, retirement, and the loss of a loved one.
Mark Hoy

With over 15 years of experience in financial services, Mark established Wollemi Wealth Management in 2013. His business is built almost entirely on referrals and word of mouth — a testament to the trust, integrity, and long-term relationships he forms with his clients.
Derek Gascoigne

Derek Gascoigne is the State Manager for UniSuper Advice in Victoria and Tasmania. Derek has been with UniSuper for over 15 years, and his career in superannuation and financial services spans 27 years and counting.
Annika Bradley

Annika Bradley is Head of Advice Strategy, Research & Technical at UniSuper. She brings over 20 years of experience across investments and wealth management in both the public and private sectors.
Wayne Leggett

Wayne has been a recipient of numerous industry awards and was one of the first to qualify as a Certified Financial Planner (CFP). He has been heavily involved in industry affairs at the highest level, including serving as national president of the Association of Financial Advisers (now FAAA).
Conrad Francis

Conrad Francis is the Founding Director of Inspired Money, a Perth-based financial coaching and financial planning, mortgage broking and money coaching firm he established in 2011.
Andrew Beks

Andrew Beks is a Chartered Accountant and the founder of Simplified Business and Accounting.