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Financial Stress Due To COVID 19

Financial Stress Due To COVID 19

None of us can stop talking about the coronavirus pandemic, which started in the latter part of January 2020. Still, most countries like the US, Italy, etc. never acknowledged this as a concern until March 2020. We are now in a catch 22 situation. During times like these, it is evident that stress and anxiety will creep in, and that is what we are going to discuss in this article with some probable ways to deal with it:

– Lay-Offs

Nowadays, it is not uncommon to read in the newspapers that companies are firing employees to deal with the loss incurred due to COVID-19. It is a loss for both parties as, on the one hand. The employee loses his job, and the employing organization is forced to downsize. It causes a lot of stress in the minds of the person facing job loss as his regular income; the source is ceased.

It is one of the reasons we have put great emphasis on creating a passive income source that cushions you against your financial crisis. There are a lot of things that you can try; like creating a blogging website, putting together travel videos, and monetizing them on YouTube; investing in REITs, etc.

– Depletion Of Emergency Funds:

The first thing which I did after the states announced a complete lockdown, is to check on my emergency funds; (we have discussed a lot about ‘Emergency Finds’). Nobody would disagree that when we don’t have a habit of saving and creating funds like these; then any adverse situation (no matter how minuscule) will only go south.

The ideal situation is to have at least six months of your monthly expenses as an emergency fund. And make sure you don’t dip your hands until a genuine emergency arises.

Imagine a situation when the economy is at a standstill, and you have no business to earn – how important can these funds be? Such funds will come to your rescue during such horrid times.

– Anxiety And Stress:

Instances of suicide and depression have also been increasing due to coronavirus pandemic’s financial stress. It is ironic that even though we are more connected to each other than in the earlier years (thanks to the internet); we can’t make ourselves and our loved ones feel important and happy.

To solve this problem, we can resort to looking at this pandemic from a different perspective since the lockdowns have given us a considerable amount of free time. It can be used to give to our families and ourselves. By spending quality time with your loved ones, you can deal with this crisis.

– Adjusting To The New World: