The recent pandemic has opened the eyes of people around the world. Especially people in the United States. We now realize that this very privileged lifestyle of a free economy and freedoms we take for granted could easily be taken away. If we were ever to face a large economic collapse we would have to completely change our lifestyles. What would happen if this ever happened again or if this situation worsened? There are a few financial decisions that you can make right now to ensure that you are prepared for this to happen again. Consider these ideas.
Savings
It’s always a good idea to have a decent emergency fund saved up. Most financial advisers recommend having six months of your monthly bills costs saved up in your savings account. That way if you are ever out of work for longer than a few weeks you will be able to survive. Having a savings account is crucial for surviving hard times. President Trump was able to pass a stimulus plan that helped out the United States of America citizens. However, this plan took tons of time, and months later some people are still waiting for their money. One way to have more money in savings is to have cheap auto insurance. This is why having a savings account is crucial to surviving a global crisis.
Don’t Maintain A Lot of Debt
Live a less expensive lifestyle. Just because you can afford something doesn’t mean you should buy it. So when you are living your everyday, non-pandemic lifestyle, keep your debt down. Organize a budget and pay off as much debt as possible. This will ensure that you need less money to survive if you are in the midst of economic collapse.
Living a more frugal lifestyle can help you keep money in your pocket. Eat non-name brand food, don’t eat out a lot and be sure you are getting the best deal on all of your bills. These few small changes can save you lots of money every month. Buy less expensive cars and don’t live a lifestyle that keeps you living month to month. Cheaper cars are more likely to have cheap auto insurance. Be sure that you can put approximately 10 percent of your income into savings each month.
Be Well Rounded
Don’t just have one single income for your entire family. It is never a good idea to put all your eggs in one basket. So when you are planning your life be sure to have a couple realms of income. This may require both adults in your household to work. Or if you live alone consider doing side sales or having a side business. Keeping your lifestyle and income well rounded can help ensure that you will have income coming in even if your regular job isn’t the source.
Along with being well rounded on your income, round your investments as well. The stock market is a very risky place for money to be stored. So although there is money to be made in the stock market consider also keeping money invested in other places. A great place to invest money is in properties or land. Or invest in things that do not depreciate as much and are less reliant on the stock market.
It really isn’t a question of when something like the Covid 19 pandemic will happen again, it’s a matter of when. Being better prepared to deal with something like this again will ensure that Americans have the best chance of surviving it. There are many ways to reorganize your life and budget in order to ensure that you are better prepared. Have a good budget and money in savings. Live your life in a more affordable way so that you can afford to live.
