8 Financial Lessons Learned During The Pandemic

If we can point to a silver lining from the pandemic, several surveys have consistently pointed to the following trends that show people are: – saving more money. – spending less. – reevaluating their priorities.

If these are permanent changes, they are good financial habits and favorable outcomes for Americans—improved financial literacy yields long-term benefits.

Saving More The US Personal Savings rate–the percentage of people’s disposal income after taxes and spending–exhibited substantial rises during the pandemic. As a result of the pandemic, many consumers plan to continue to save more and spend less on nonessential items (egNerdWallet, The Harris Poll). .

Less Spending According to a recent Bank of America survey, roughly two-thirds of Americans say their spending habits have changed since the start of the pandemic. Respondents pointed to reduced costs from commuting, dining out, paused gym memberships, and vacation travel.

Financial Lessons Learned During The Pandemic

1. An Emergency Fund Is Vital The mantra of having an emergency fund to pay for your living essentials became more apparent during these times. The amount to save for this fund is less obvious.

2. Investing In Stocks For The Long Term Keep a long-term perspective while maintaining diversification in your portfolio. Determine whether you have too much or too little risk for your tolerance and lifestyle. I trim stocks that have done well. I do this sell a bit as certain stocks have grown 20-25% or are too large compared to my total stock portfolio.

3. Working Remotely Became A Bigger Benefit This is a grave lesson for employees who were furloughed or laid off because of jobs that weren’t as amenable to remote work or lacked skills to do so.  Remote working jobs will remain in demand. Employees will want to equip themselves for such jobs by learning skills to allow them to do so.

4. Telemedicine Became More Essential The telemedicine industry was growing before the pandemic. However, as the government called for widespread lockdowns,  telemedicine’s need became essential for the medical field to adapt quickly.

5. Online Learning Public education is the best way to raise responsible citizens, forge a common culture among our diverse population. That was constitutionally accepted after the Brown vs Board of Education.1954   Until then, public education was unequal for blacks who were discriminated against by having to go out of their neighborhoods to separate schools.

6. The Benefits Of Lifelong Learning Learning skills can make your job more secure, help you earn more, and position you as a more attractive candidate to other organizations.  Take the initiative to look into where you do some of this training on your own.

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