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Now that we are facing this COVID19, how are you coping?
With the quarantine, the rising numbers of infected, death rate rising, some people are scared and are panic buying.
Not everyone can; but I really hope that we have saved for an emergency situation such as this or any event where you can’t work and earn.
Having an emergency fund is a must. I’m sure you’ve heard it in the news that some companies had to let go of their employees. Companies can’t fully function and there’s a travel ban affecting the economy.
As many financial advisors have said, have an emergency fund that will help you face emergencies like this and will somehow lessen your panic or worry. As a standard, an emergency fund should at least be 3-6 months of your monthly expenses. It should be in cash, liquid cash that you can easily use to buy necessities like food and medicine.
One can argue that they did save for the rainy days, they have real estates and other investments. If you have invested most of your money in stocks or bonds, how easy can you convert it to cash today? And will you not be losing money if you sell your stocks now that the market is so down? Like Warren Buffet says “be greedy when others are scared and scared when others are greedy”. If you are into stocks, you should be studying what to buy because they are so cheap. But you can only do that if you have confidence in your investment decisions and if you have extra money to buy more, if you have saved.
If you have invested most of your money in real estate and other assets, how easy can you sell them now that people are not allowed to go out unless it is to buy food and other necessities? Cash is king. Some people who are blessed and have enough cash are actually using it to help other people, especially those who are in dire need.
Aside from having an emergency fund, it will really help if one has life and health insurance. Our life is fragile and it is for that reason that those products are created. Health is wealth, getting sick will immediately wipe out one’s savings. If you are not insured, consider getting a life and health insurance.
Once this crisis is over, we will have another chance to start again. Our economy will recover; our life will slowly return to normal. I am sure this situation that we are in right now has taught us lessons. Let’s not forget what’s really important to us, our health, our family, our life, our faith. May the Lord heal the earth.
Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect that of the Insurance Company that the author is representing. The content shared here should also not be construed as advice. Please talk to a Financial Advisor/Planner.