With the pandemic taking over the world, money was one of the biggest issues of 2020. The economy struggled in so many ways because of the pandemic. People lost their jobs, businesses and some even lost their houses. But the year did teach us a lot when it comes to money. So here are 3 money based rules that 2020 taught us.
Always Have An Emergency Fund:
Since the lockdown and quarantine happened all so suddenly, it is very important to have at least a three months emergency fund. Every month keep adding to that fund. You could start saving by something as little as 10% of your earnings and you will be surprised to see how much you have saved in just 6 months or so. “As the pandemic has illustrated, that often won’t be enough,” said Greg McBride, chief financial analyst for Bankrate. “Long-term unemployment (being out of work six months or longer) is on the rise and business owners have taken a financial hit like never seen before.”
Be As Debt Free As Possible:
If you are someone who is always in debt from their friends or family, then change it. Be as debt free as possible. Because when such an emergency strikes, you don’t know who will ask you for money. Plus, it is easier to make an investment or even think about an investment when you are debt free.
Start Planning Your Retirement:
You might be thinking you are just in your 20s now and it is probably not important to think about retirement from now. That is true, however, try to save for the future. From the year 2020, we learnt that, we don’t know what the future holds, so saving up for the future is always a very good idea.