Life Lessons From Covid 19 Crisis
It was heart wrenching to see , people who you worked with
for so long, leaving due to retrenchment. Though they were putting up a brave
front but concern for future could be seen clearly in their moist eyes.
This is a common scene in most of the organising in the world. World
economy being in doldrums, corporate profits taking nosedive, people are being
laid off, business have been shut, many people are finding it difficult to make
their ends meet. is probably the worst economic crises since
Great Depression.
The current situation is affecting people’s mental health as
well. It is driving them to commit suicide.
Despite all this misery and mayhem all around there is still
a ray hope. God has endowed humans with great spirit and adaptability. We as
human beings will come out triumphant, however bad the situation may be.
Every situation teaches us some valuable lessons. Likewise I have learnt following lessons from the current crisis:
1. Build an Emergency Fund
Many of us are investing
our money regularly for future needs. These investments could be in stock market,
mutual fund or real-estate.
During the current situation entire
financial market has nose divided, be it stock markets or mutual funds. People
who had invested money in them incurred huge notional losses. If someone who
needed money during this period might have liquidated his/her investment,
turning notional loss to actual loss.
Hence it is very very important they you set
aside an emergency fund which is equal to 6-12 months of your monthly income.
This money should be put aside in less risky instruments like- bank fixed
deposit, debt mutual funds et. The emergency fund can be used to fund
emergencies- like loss of job, medical issues etc.
2. Avoid Falling into a Debt Trap
When the Lady Luck is shining on us and we are on the roll, we assume that this dream run would last forever. In this exuberance we start spending money on unnecessary things. It is still ok if you are punching these things out of hard cash, but people go too far and buy these things on credit. They hold 3-4 credit cards and max out their limits.
Once the shit hits the fan it become very
difficult to repay debt and the high interest debt starts piling up. So don’t
live on credit. Avoid keeping multiple credit cards, 1 card is sufficient. Pay
your card outstanding full every month to avoid hefty interest rate. Try to
make some down payment for your bigger purchases. Don’t spread yourself thin.
3. Invest in Yourself
The best investment is in yourself. Most of the people don’t upgrade their skills once they get a job. It is essential that you acquire new skills which will make you more proficient in your job. Make yourself so valuable to your company that they can’t even think about laying you off.
4. Side hustle
The inflation is so steep, our wants are increasing everyday at a rate that an average person cannot afford a decent lifestyle with one income stream. Find out what you are good at and do a side hustle which gives you some extra income every month. You can encourage other able family members to pick up part time job to support the family. Or if you have a spare room give it to out as a PG or as guest house etc.
Objective is not to rely on one income stream to run your household. If by any chance you loose your job you shall be able to meet your expenses through the second income stream.
5. Improve your Network
In today’s interconnected world there is no substitute to a good network( I am talking about human network). The better and bigger your networks is, easier it would be for you to thrive and survive. If you have a good network you can leverage it to get a new job or acquire new customers for your business etc. you need to cultivate your networks during normalcy so that you can use (not in derogatory way) them during difficult times.
6. Prepare Yourself Mentally
7. Take Care of Your Health
Physical wellbeing is one of virtues one can have. It assumes more importance when the going is tough. If you are physically fit and free from aliment you can focus your 100 % energies on overcoming the challenges.
8. Have a Good Health Insurance
Most of us rely on health insurance provided by our companies to fund our health emergencies. God forbid if you are out of job, you may not be able to afford hospitalisation bill. With medical cost rising, it is imperative that you have a good health insurance to take care of your family.
Summing Up:
2. Avoid Falling into a Debt Trap
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