This is a good time to look at our personal finances and prepare for when better times come back. It is true that we are in for a long ride and it is better to choose hope over despair, to prepare than to let circumstances dictate our fate.
By the end of 2020, if you still have your job or your business is staying afloat or even thriving, then you are fortunate. Nevertheless, these challenging times are still a downer even if you are fortunate. And if you are among those who lost your job or your business is struggling or gone, then I urge you to keep fighting. I ask you to be a strong cheerful person among your family and friends, someone people can lean on in time of trials.
What you can do to get through this storm?
1- Take care of yourself and your loved ones.
Financial well-being is important but not ahead of your physical, mental and spiritual well-being. I encourage you to do the little things that you know help in those areas.
2- Revisit your budget.
Update your budget for those trying times. If you do not have a budget then I encourage you to work on one. Recent CPA research shows that although 77% of people say they have a budget, only 32% stick to it. Budgeting is a practice that improves your financial situation. And you do not have to be a genius to practice budgeting. Everyone has the skill to budget well and I guarantee you that your future self will be grateful to you if you follow a budget as you will end up better financially.
3- Set a financial goal.
We all have an obligation to manage our money well and to put it to good use. I advocate good money management practices because we are here to maximize our potential. Financial goals could focus on growing your income or assets or allocate your spending or debt to better reflect what you value.
4- Pick a new hobby.
Pick a new hobby now, especially if you are spending more time at home. You could be learning a new language or learn to play a musical instrument. I have started to learn Spanish as I have future travel plans that I hope will come to fruition in a not too distant future.
"The secret to happiness is always having something to look forward to" - author unknown.
So plan ahead. Keep your dream alive. Give yourself some TLC. And yes, manage your money well!