Leveraging COVID-19 to Achieve Financial Goals

The COVID-19 coronavirus pandemic has had far-reaching impacts on the ways we work, play, and live our daily lives.  For many this is a time of hardship caused by business closures and job instability.  And for others this is an opportunity to acquire investment assets at a discount.  There are lessons we all can learn during this time to accelerate the achievement of our own financial goals.

This is a time of hardship.

Those experiencing job instability and uncertain career prospects will hopefully land in the safety net cast by their emergency fund.  An emergency fund is a pool of liquid funds available to you immediately in the event of unexpected emergencies, such as sudden job loss.  A healthy emergency fund is critical in times such as these as it allows you to maintain your lifestyle for a period of time when your next paycheck is uncertain.

Hardship can lead to opportunity.

If you are fortunate enough to see this time as an opportunity to acquire investments at a discount, you likely have experienced certain stresses of your own during this time due to the incredible volatility within the financial markets.  Is this the top?  Was that the bottom?  Who is going to Tweet something tonight that will send the market soaring or crashing at open tomorrow?  The volatility in the financial markets right now feels like playing with fire.  We can insulate ourselves from investment volatility through dollar cost averaging and through proper investment diversification.

The rest of us fall somewhere in the middle.  Many were fortunate to quickly shift to a work from home setup without any major disruptions in income.  Perhaps the biggest challenge you’ve encountered is coping with the sense of isolation from your loved ones, co-workers, and local community.  Hopefully you dug out your trusty frying pan now that eating out is a distant memory.  There are health benefits to cooking at home, plus it’s fun and saves money!

The power of good habits.

Establishing good habits now will pay dividends in the future once the pandemic ends and we return to a more social and outgoing lifestyle.  This means avoiding unnecessary cash burn.  Make reasonable and deliberate choices with your money to support a high rate of savings and avoid keeping up with the Joneses.

How are you coping with the recent pandemic?  Are you taking advantage of the opportunity to build good financial habits?  Tell me in the comments below!