While the COVID-19 pandemic indeed caused tons of troubles worldwide, there are things we ought to learn from the current crisis. The pandemic serves as a painful financial eye-opener for most people. The following are just 3 money lessons from COVID-19 we need to remember.
Health and life insurance are a must-have
Some people think health insurance is just a luxury. That is until they needed immediate medical attention that costs a huge sum of cash. According to an article published in Business Mirror,the Philippines indeed has an insurance gap. Sure, there is now a bill that ensures PhilHealth coverage to all Filipinos. But if your hospital bill blows out of proportion, there is still a need for you to cover the expenses not paid by PhilHealth.
This is why investing in health insurance is a must. It helps you soften your financial burden caused by sky-high hospital bills. Another thing worth the investment is life insurance. This is to ensure you get to have peace of mind knowing your loved ones won’t be burdened by the costs of your debts and funeral costs in case you suddenly pass away.
We all need to learn how to manage our finances better
Since many have lost their jobs while others are struggling with their business after the pandemic, it is only a must that we all try harder to learn how to manage our finances better. Regularly add to our savings and start building an emergency fund. This is one thing that is worth every cent sacrificed. This is to protect ourselves against any financial loss and to help us get through a rough patch.
There is also a need to start paying our debts and living a debt-free life. There are “good debts” worth investing in. This includes a loan you can use to start your own business or even a mortgage so you can finally buy the house that you’ve been eyeing for a while now. By making sure you get rid of your bad debts and get to stay on top of your debt payments, you can enjoy less stress and more financial freedom.
Strive for multiple streams of income
Many Filipinos only have a single source of income. This is why many were devastated after some businesses had to suspend their operations indefinitely. Some got laid off due to their companies closing down, and other’s livelihood was extremely affected by the pandemic. If there is one crucial lesson that hurt many is that it is wise not to be contented with having a single stream of income.
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Having more than one source of income will not only allow you to enjoy more earnings and build wealth while you are still strong and capable. This also gives you peace of mind knowing if something happens on one of your job or business, you will have another one to turn to. You can enjoy many unique opportunities, take advantage of tax benefits, and even take more risks.
The COVID-19 crisis caused many people financial headaches and broken hearts. This is why it is only a must that we learn all the important lessons the crisis has to offer, including money-lessons. Get a better grip on your finances, manage your money wisely, invest in health and life insurance, and work harder to build more than a single income source for a brighter financial future.
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