Post-COVID Personal Finance Management
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The COVID-19 disruption has brought about a wave of uncertainty that has mitigated the financial circumstances of individuals, and corporations alike, because of the unprecedented demand slacks. This has adversely impacted companies because of the decreasing consumer propensity to spend, amidst lesser earnings that have resulted because of high rates of unemployment and falling income thresholds because of altering consumer patters. In this case, many individuals find it hard to manage their personal finances because they are often at crossroads when it comes to making decisions about purchasing goods and services from the market. However, there are a couple of personal finance strategies that might be helpful Post-COVID, for individuals to be able to manage their expenses and sustain themselves financially.
There have been numerous changes that have off sprung as a result of COVID disruption. Social Distancing and Working from Home tends to be one of the significant precursors in this regard. It can be seen that this particular impact has resulted in a substantial amount of saved time as a result of not having to commute to and from work daily. Therefore, with individuals having time to spare, it is perhaps a good idea to use this time constructively elsewhere. With the creative economy seeing a surge in the recent past, freelance work is an excellent way to earn some extra money.
In the same manner, it is also highly essential to ensure that individuals can prioritize their expenses. Consumer spending across the globe has seen a very discrete shift in spending patterns, which has resulted in redefining of luxuries and necessities. In the same manner, it is also essential to realize the fact that spending patterns should be reflective of purchasing items, which are necessities, which majorly include food and groceries, as well as utilities.
Unemployment and economic downturn are one of the most crucial aftermaths of COVID-19. With the uncertainty about job security and wage cuts, a lot of individuals are under stress and anxiety about the future. This calls for people to plan their budgeting and financing with the utmost care so that they can prioritize and ensure that they do not fall under the poverty trap, which is highly likely in the existing circumstances.
Therefore, when it comes to personal finance, particularly Post-COVID, it becomes increasingly important to realize that certain aspects need to be considered for facilitating a higher income stream, and a reduced spending pattern, so that the resources can be used efficiently.
In conclusion, we can see that Post-COVID holds a relatively uncertain degree of power and control, predominantly because of the element of ambiguity as to how long it could last. With the restoration of the normal being a sight far from reality as of now, it is perhaps a better idea to be agile and adaptive to the current situation, so that it gets easier to redefine a new normal, which probably is the only way out at this point.
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References
Graff, G. M. (2020, May 8). Perspective | We haven’t even begun to grasp how much damage the pandemic will do. Retrieved from https://www.washingtonpost.com/outlook/2020/05/08/coronavirus-economic-recovery-disaster/?arc404=true
Not Back But Forward: What The Post-COVID-19 Economic … (n.d.). Retrieved from https://www.forbes.com/sites/nishandegnarain/2020/04/22/not-back-but-forward-what-the-post-covid-19-economic-recovery-models-are-getting-wrong/
