Last five weeks of Lockdown, have been very tough for everyone physically, financially and mentally. There is a little of ambiguity as to when this phase will get over and people are dealing with a lot of psychological problems like uncertainty, irritation, despair, pressure, restlessness and emotionally drained. We are locked inside our house, maintaining social distance, managing finance and going out if it’s a necessity like buying fruits, vegetables, medicines etc.
The biggest worry is what if the salary won’t come?
How do I manage my finance?
I hope my job won’t go….
As the lockdown commenced, there is a major deterioration in the economy and companies are finding it hard to pay to the employees as sales numbers has plunged substantially. The fear of loss of job and cut in the salary has boggled our mind and has been giving sleepless night. And made us forced to think that how we have been wasting our money all our life and never gave priority to saving money. The recent times have replaced spending casually to spending wisely and we have inculcated a fruitful habit of budgeting. The things we would take for granted over luxury items have taken the front seat and considered to be mandatory for survival. Some of us are finding it difficult to cope with circumstances but many of us have effectively alter to this novel way of life form and have learnt some fascinating lessons in life.
When it comes to money and finance, here are the important lessons we have learned during this pandemic.
1.Difference between need and want: The lockdown taught us to differentiate between need and want. During this phase, we are only buying essential items for survival and avoiding any unnecessary purchase. Before this lockdown we would purchase stuff just for the sake and might not even use it. The purchase we would make either we are bored at home or a friend has it or sale is going on whatever reason though but that amount is now lying safely in the bank. With the restricted access to shops and enormous interruptions in online deliveries, there is a by default impose on our ruthless spending and most of us have reentered the definition of luxury products.
We would spend on clothes, electronics, make-up, jewellery etc. even if we don’t need them but because of the lockdown they are no longer accessible to us and we are very well surviving with what we have, therefore most of us have realized that over splurged on these non-essential items. we have comprehended that we can survive very well with the things we need over things we want.
2. Over spending on eating outside: Most of us have realized that how much they have spent on take away, restaurants, uber eats before lockdown and wasted their hard core money on eating outside and hardly paid attention to the simple fact that the same was affecting their pocket and health as well. When you cook the same junk food at home it is far nutritious and you can alter the taste as per your preference. In fact, this lockdown has made people more keen towards cooking variety of food at home without much effort and putting themselves away from the risk of gaining weight.
Lockdown has given us ample time due to no commitments, no traffic, no social gathering and more time to make our favorite food at home. Like this one can save a lot of money and also remain fit.
3. Budgeting and Cost Cutting: This was the last thing on mind for many of us planning your financing or saving. We would only think about budgeting during the crisis. Some of us have avoided it for years and never paid attention to saving money. But this unprecedented circumstance has made us careful about spending money and have become more inclined towards budgeting and cost cutting. I know people who are regretful for not saving for any unforeseen circumstance in the past, today they have learnt the importance of emergency funding and maintaining a budget.
There is a saying beggars are not choosers, so we have no choice other than to curtail our expenses considering the economy downfall, layoffs, reduction in the pay and many other factors which has given us a financial shock.
The year 2020 has been an eye-opener for many of us who would take life for granted and won’t save for any unforeseen circumstance.