For many 2020 was our 20plenty, the dawn of a new decade filled with hope and new starts but that changed when we were hit by the pandemic unexpectedly. We lost our relatives, our friends, colleagues and others lost their sources of income. To sum up it has been a bad year to many. I am one who believes that everything happens for a reason and in every situation, there are some lessons to be learned. In this article l will share financial lessons which l learned throughout this year.
Lesson 1 – Importance of an Emergency Fund
The pandemic just hit us unexpectedly we didn’t know this would take many months without a cure being found. In these times l have seen the importance of an emergency fund. An emergency fund is those savings set aside for a rainy day or when an accident happens. We don’t plan for emergencies and that is the reason why it is essential to start building one so you don’t resort to borrowing money when faced with one. We noticed that many people lost their income due to salary cuts, or job losses as many companies globally shut down. In this instance, if one didn’t have an emergency fund it is easy to go into debt to cover day to day living expenses. Having a saving set aside to cover for your monthly day to day living expenses is important, as this will work as a buffer when you trying to figure out the next step to generate income. I like calling an emergency fund as a DIY (Do it yourself cover).
Lesson 2 – It’s possible to live on basics only
The second lesson l leant this year is that it is possible to live on basics or essentials only. We spent many months in lockdown where we were only allowed to go to the supermarkets to buy basics only. This principle is what is needed in financial success to live within or below your means. When we spend only on items which matter the most to us, we find it easy to set aside money to save and invest.
Lesson 3 – Importance of having multiple streams of income
Our education system teaches us to be ready for the job market and be an employee. We are not taught of entrepreneurship at all. This year I have noticed that relying on one source of income is a recipe for financial disaster. Why am l saying this? We have witnessed people close to us who lost jobs and they were stuck with no income for their day to day living expenses. That’s why l advise people to have multiple streams of income so that if one stream of income is affected you have somewhere to fall back on. Everyday make it a point to look for money and to add more money to the streams you already have. Even in the bible, it’s written that” l will bless the work of your hands” Deuteronomy 28 vs 12. It is up to us as individuals to search for our talents and gifts to utilise them to generate income for us.
Lesson 4 – Financially Adaptability
Financial adaptability is the ability of an individual to respond to unexpected needs or opportunities or economic hardships. Financial Adaptability as a skill refers to the ability of a person to change his actions, course, or approach to doing things to suit a new situation. Many are stuck in the past and in that notion, “we used to, l used to”. I challenge that mentality as it makes us get stuck and we stop using our common sense. The pandemic has taught us that we have to adapt and move with the times. You have to keep your mind busy looking for ways to make more money, for ways to take care of your money. Adapting to change is fundamental for surviving in a dynamic world. Thus, also applies to how we manage our finances. You can’t keep on doing what you used to do and expect to see change, I call it pure madness!!
Lesson 5 – Key to Financial Freedom is in your hands
The last lesson which 2020 taught us is that key to financial freedom is in one’s hands. We have the power to make more money, to take care of our money, to make our money work for us and to live a debt-free life. Our mindset plays an important role in how we handle our finances. Are you stuck in abundance or poverty mindset? If you can answer this question that is your answer to why you haven’t or have reached your financial success. It all comes back to our daily routines, what do you spend your whole day doing will tell you the results you will achieve when the year ends. That’s is why l say the key to your financial freedom is in your hands. Choose wisely what you spend your time on. I will leave you with this bible verse “Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty” Proverbs 21 vs 5
We must be in charge of our money matters. Despite the challenges that 2020 has brought on us, let choose to look at each day positively. Let’s choose to draw lessons in what every day brings to us. Let’s choose to learn from our money mistakes. Let’s choose to be the leaders of our finances. If we can’t do it for ourselves, no- one will do it for us. Let’s choose to take care of our money so that it will take care of us.
By Tarie Manyonga
