The COVID-19 pandemic came out of nowhere. Millions of people panicked as governments worldwide closed their borders to foreigners. Schools and establishments cut operations, causing a rapid loss of income brought about by the termination of 225 million full-time jobs worldwide.
Fortunately, the effects of the pandemic abated after more than two years. As life returns to normal, it is crucial to understand the lessons learned from the global crisis. For one, people learned to value their limited time with loved ones and the importance of helping others. The pandemic also raised awareness about the fragility of life and work and how both may disappear without warning.
Winston Churchill once said, “Those who fail to learn from history are condemned to repeat it.” Experiences serve as lessons to guide future decisions. As such, reflecting on the highs and lows you faced in the past two years is vital to living a better life moving forward.
5 Career and Money Lessons the Pandemic Taught Us
No one knows when the next global crisis will occur. Nonetheless, it is essential to learn from the effects of the pandemic to survive and thrive in the future. Here are five lessons the pandemic has taught the world.
- Build an emergency fund
The most evident lesson from the pandemic is that emergencies can happen anytime, so you might need more time to prepare. During the pandemic’s economic recession, many people had no choice but to drain their savings for essentials, emphasizing the importance of building an emergency fund.
A well-built emergency fund could keep you from dipping into your savings during unemployment, accidents, recessions, and other financial crises. However, given that the pandemic lasted for over two years, you should try to save a bit more. As a rule of thumb, you should save at least six months’ worth of your necessary expenses, which include your bills, meals, and rent.
Setting aside such a significant amount may feel intimidating, especially when you need the money now than later. Nonetheless, setting aside a small portion of your monthly income can go a long way to secure your future.
- Live simply
Governments worldwide forced most establishments to close during the height of the pandemic. In turn, people had no access to services. Some resorted to cooking meals at home than eating out, while others cut their hair instead of heading to the salon.
Living like this—independent of unnecessary expenses—save more cash and gives you more time for yourself or your loved ones.
Living below your means, which is spending less than your income, is essential to achieving financial freedom. You do not need to buy something simply because you can afford it. Reducing unnecessary expenses like subscriptions and expensive clothing could help grow your savings quickly.
- Determine your needs and wants
Chances are, the pandemic heavily impacted your finances. Perhaps you faced unemployment risk or a salary decrease if your company fought to stay afloat. If that is the case, the pandemic may have forced you to build a budgeting system if you have not done so before.
Even as COVID-19 cases drop, knowing the difference between wants and needs can help you organize money effectively. Ask yourself before making a purchase, “Do I need this?” If the answer is no, it may be best to leave it alone.
That said, you may need to pay attention to your wants. After all, you worked hard for your money, so why should you not enjoy it? However, being smart about your expenses can be more beneficial in the long run, especially if you need to save for something as significant as a house or a family.
- Seek and accept help
Another important lesson the pandemic showed people is that no man is truly an island. As prices rose and employment rates fell, many people had to seek financial help from their governments. Fortunately, legislators around the world passed policies providing aid to their citizens, whether in the form of unemployment assistance, relief goods, or price reductions.
Asking a friend or family member for help requires a different kind of courage for many—you must put down your pride to survive. The lesson it imparts is more significant than money, as it forces you to communicate your needs to others.
Other than that, it is always better to ask for help and pay it back later than to resort to risky activities like taking out high-interest loans.
- Support others
The pandemic showed that people, no matter how different, can help each other out. Suppose you are one of those lucky enough to have a stable income during the pandemic. In this case, you could continue helping others. Conversely, even if you could not do so back then, there is always time to start now.
Donating to institutions that the pandemic heavily affected, such as hospitals, food banks, and homeless shelters, is extremely helpful. Even minor actions like giving food to the homeless, donating blood, or accompanying someone without family can show others that you care.
Learning From Experience
Preparation is crucial to avoiding the same mistakes during the pandemic. Building an emergency fund, creating budgets, and living below your means can get you ahead of the curve when the next recession arrives. Take note of these money lessons and keep your future secure.
COVID-19 left a lasting effect on everyone. Many developed better health practices and social awareness, while others could not build anything. Those who experienced the latter were likely too busy trying to make ends meet and survive. Nonetheless, the pandemic also showed that people are always willing to help others in need—all you need to do is ask.
