We are officially through the first quarter of 2020 and I think we can all agree that it wasn’t what most of us expected. In the last month, the whole world has been turned upside down. It’s hard to find any region of the world that hasn’t been impacted by COVID-19. 

No matter where things go from here, there have been some key lessons brought by this pandemic. None of these are new but certainly have been a reminder of some things we should always have in mind. While there are plenty of lessons to be taken all around, I’ll stick to the financial lessons in this post. 🙂

1. Health is the greatest wealth. 

First and foremost, we have been reminded in a huge way that without good health, most other things don’t matter. Having money is great, but what good does it do you if you or your loved ones aren’t healthy? While we can’t control every possible thing that could go wrong with our health (like getting COVID-19) we can remember to always take care of ourselves and do what we can to stay healthy. Eat healthily, stay active, and stay on top of our mental health too.

2. Always have an emergency fund.

Having an emergency fund can seem really annoying. “You’re telling me I’m supposed to have thousands of dollars saved and just never touch that money for anything fun and keep it for when things go wrong?”… Uh yeah, that’s exactly what I’m telling you. I know there are million other things you’d like to do with your money, but unfortunately, none of us can predict the future. You never really know what can happen and how bad things can get. Maybe a couple of months ago we would have thought nothing super crazy could happen, but after the past few weeks, we have all seen that things can drastically change literally in days. 

In the last month, we have seen the stock market tank, businesses close their doors for an indefinite period, and millions of people have quickly found themselves unemployed. But our government will take care of us right?! Let’s all be real here… $1200 per American (if you qualify) is certainly better than nothing but that barely covers one month’s rent these days! That depends on where you live of course but if you’re in Southern California like me, $1200 will not even cover a full month’s rent. This is not to sound ungrateful or snobby, but it’s to remind you that nobody will take care of you in the long run. YOU need to be prepared for emergencies big or small. 

If you don’t have an emergency fund, start one as soon as you can. Even if you can only save $5 a week right now, do it. You can download this emergency fund tracker I created to help you keep track of your progress in a fun way. 

3. Live within your means.

The year is 2019… You are living your best life. You bought yourself a fancy car because why not you can afford the monthly payment of $650. You just got back from your super Instagram-able trip to Bora Bora. Life. Is. Good. Fast forward 9 months. COVID-19 strikes. You lose your job overnight. You don’t have money saved for emergencies because eww that’s not cute on Instagram, and you now have to keep up with a lifestyle that you never really could afford to begin with. Live within your means! I’m not saying don’t buy a nice car or take a nice trip. Save for it, plan for it, and make sure you still have enough money to save and invest after paying for all that. Living within your means helps not only build wealth when things are good but keep as much as you can when things go bad.

4. Don’t overuse credit.

Just don’t do it. If you want something, save up for it and pay for it cash. If you want to use your credit card for the points or cashback, save up for it so you can immediately pay it back after. Paying debt off is hard enough when you have a job, trying to do it when you don’t is nearly impossible. 

5. Have multiple streams of income.

This one is hard especially if you have a full-time job that keeps you pretty busy. It’s okay if you don’t have multiple streams of income but if you are able to, it can really help when financial crises happen. If your day job has to close, but you still have a side hustle that you can keep going then at least not all of your income comes to a fast stop.

6. Diversify.

If you are investing, don’t have all of your eggs in one basket. Make sure you are well diversified and invested appropriately for your age and risk tolerance. This post is not intended as investment advice so if you’re unsure about whether or not you’re invested properly, reach out to your financial advisor for consultation. 

There you have it folks – 6 key financial lessons from March 2020 that we should always remember. I hope this new quarter brings some much-needed relief to everyone. Things may still get much worse before they get better so please stay safe, stay home (if you can), and stay kind. ❤️

Nothing on this blog should be considered personal actionable advice, research, or an invitation to buy or sell any securities. Consider all risks before investing, including the loss of your hard-earned money. Vee is an Investment Advisor for Warren Street Wealth Advisors, this blog reflects her personal views and not that of Warren Street.