I don’t know about you, but I’ve learned a lot of financial lessons over the past few months due to the currently financial state of the world. From having a diversified income to making sure you can pay a few months of your bills, there are a lot of things we need to take away from the current crisis.
Have an Emergency Savings Account
You really never know when you’ll need the money. A lot of people lost their jobs recently, and many of them are not sure where their next paycheck is coming from. Therefore, it’s incredibly important to ALWAYS have some money set aside.
Your emergency savings should be able to sustain you for AT LEAST three months, but six months or even a year is better. It’s always great to be safe over sorry. But if you’re just starting out with your savings account, it’s OK to start small. Make your first goal to have an emergency $1,000 saved.
Know Where You Stand (at ALL Times)
Knowing where you stand financially is terrifying to most of us. We know that we should always know, but we also know that most times we probably won’t like what we see. But even if we’re scared of knowing it’s really something we need to know.
One of the biggest financial tips that I’ve learned over the past few months is that you really need to know where you and your money stand. That means checking in on your bank account and cards at least once a week and knowing the areas that you need to focus on to improve.
Diversify Your Income
Many households were shattered when COVID-19 came barreling in and destroyed many of our jobs. If you relied on one particular income and it was suddenly taken away, it probably didn’t just leave you worried but extremely anxious!
It’s time for most of us to diversify our incomes. Having diverse income streams means that you don’t rely on one source for your money. And that is an incredibly freeing feeling. There are a ton of ways that you can diversify your income, and they don’t have to be overly complicated.
Learn How Money Works
There is no time but the present to learn about how money works. It’s incredibly important to be really tapped into your money game, but it doesn’t come naturally to all of us.
It’s become increasingly evident to me that during times like these, I know almost nothing about money. Despite spending a lot of my time writing financial articles and researching new concepts, applying them to your own situation is a challenge. So, one of the most important financial lessons is to learn about your money.
Be Realistic With Your Money Goals
The last lesson that I’ve learned over the past few months is to be seriously realistic about your money goals. I’m one of those people with big, grand ideas. But when it comes down to it, small steps make more of an impact.
Did you learn any big financial lessons this year? Share them in the comments below.
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