Tough Financial lessons learnt from Covid -19

We all have observed that since end of 2019, whole of the world's economies are struggling to come to normal and the same way it has been a bad time for many of us. The global pandemic caused by the coronavirus that started in 2019. The pandemic has certainly taught us some tough financial lessons. 

Here we are compiling a most important lessons for us:

Emergency Funds are essential: 

The pandemic has shown us the importance of having an emergency fund. Many people lost their jobs or faced a reduction in income during the pandemic. Those who had emergency funds were able to manage their expenses and avoid falling into debt. It's important to have at least three to six months' worth of expenses saved up in an emergency fund.

Health Insurance is vital: 

The pandemic has highlighted the importance of having health insurance. Those who were infected with Covid-19 and had health insurance were able to get the medical care they needed without worrying about the cost. Having health insurance is essential to protect yourself and your family from unexpected medical expenses.

Diversification is key: 

The pandemic has shown us that investing in a diverse range of assets is essential. Those who had all their money invested in one asset class or in one company suffered more during the pandemic. A diversified portfolio can help mitigate risk and protect your investments during uncertain times.

Prioritize Needs over Wants: 

The pandemic has forced us to prioritize our needs over our wants. Many of us have realized that we can live without certain luxuries and that our basic needs are more important. It's important to differentiate between our needs and wants and prioritize our spending accordingly.

Financial Planning is crucial: 

The pandemic has taught us the importance of financial planning. It's essential to have a budget and a plan for your finances. Financial planning can help you manage your expenses, save for your goals, and prepare for emergencies.

Overall, the pandemic has been a tough time and also lesson for all of us. It has taught us the importance of being financially prepared, prioritizing our needs over our wants, and planning for the future. So we request everyone to be always prepared to face similar situations anyway.