Perhaps you’ve read 4 Key Lessons That COVID-19 Has Taught Me About Personal Finance.
- Always set aside Emergency savings.
- Diversify income streams and skill sets.
- Get suitable and sufficient insurance coverage.
- Prepare your Will and complete your Nominations.
Here I’ll share additional comments and thoughts on the 4 lessons.
1. Always set aside Emergency savings.
How much should you set aside for Emergency savings? Financial advisors have slightly varying views.
I would recommend 3 to 6 months’ of your income.
This is to provide some cushion should you be retrenched or out of job while you search for a new job or source of income.
2. Diversify income streams and skill sets.
The article has provided some beneficial thoughts. And one can look to Work Skills Future to upgrade one’s self.
What I would like to add is to emphasise on managing your cashflow.
Having additional income streams and skill sets will not make any difference if you are not managing your cashflow well.
3. Get suitable and sufficient insurance coverage.
I would add that this would be a good time to get in touch with your financial consultant/planner to review your insurance portfolio.
This would benefit you in at least 2 areas:
- identifying shortfalls in your insurance coverage and what you can do about it
- if you’re financial tight or affected due to the current situation, your financial consultant/planner should be able to help you restructure your insurance portfolio and possibly save you some premiums
4. Prepare your Will and complete your Nominations
Perhaps this is a good time to address the elephant in the room.
Estate planning should be addressed sooner than later.
If there is only one thing the current pandemic has taught us, it is that life is full of uncertainties.
You can never be too prepared.
Do get in touch with me should any of the above lessons be of immediate concern to you.