Financial Lessons from Covid-19

Hello once more. We're gradually emerging from lockdown here in Canada. The past three months have been challenging for everyone. As we attempt to resume our lives, I have mixed feelings. Part of me longs for things to return to how they were before COVID. Another part of me hopes certain aspects remain, like reduced traffic and lower climate pollution. I've read about animals emerging from hiding and whales traveling further inland due to fewer ships. CO2 emissions have decreased, air quality has improved, and noise pollution has significantly reduced.

Reflecting on the reopening of our economies, I started to assess how my approach to managing money had changed over the past two to three months. I recognized that there were valuable lessons to be drawn from this experience with Covid-19.

One significant observation I made was that my spending was considerably lower than usual. This was likely inevitable since I was confined to my home, which is true. For instance, transportation expenses significantly decreased for many individuals. However, I was primarily talking about the expenses related to wants versus needs.

Throughout the lockdown, our behavior shifted, and the fundamental instinct to preserve resources emerged. Our spending was directed exclusively towards essential needs. As a result, we ended up with more money to save than usual.

Lessons learned:

1. You can make your money behave when you behave.

2. Identify and prioritize your needs over your wants.

3. Spoil yourself a little with one "wants purchase" a month, if you must.

4. Save automatically every month. It's key to your security and survival.

5. You have more than you really think you have. Be content!

6. Always take essentials like Insurance (life, health, disability, auto, home) seriously and never treat them lightly.

7. Make sure you have a will.

If you incorporate and normalize these lessons in your life, you'll be prepared for any pandemic, economic downturn, or job loss. They will undoubtedly make you ready for retirement!