The global economy has suffered significant harm as a result of the SARS-CoV-2 virus outbreak (COVID-19) that occurred in early 2020. As a result, economic recovery has been given top priority by governments all over the world.
One of the most frequent behaviors observed during the COVID epidemic is panic buying, which increases anxiety and creates a sense of scarcity and lack of control. As a result, people respond to such dangers by purchasing particular goods, or necessities.
This is due to a stronger sense of caution or reduced consumption opportunities as a result of governmental legislated limits. Also, the concern over spreading sickness prevented households from accessing basic services.
Saving money is one of the finest ways to feel more in control. This provides a route out of life's uncertainty and allows you to live a more fulfilling life. Here are some reasons why everyone should prioritize saving for the future:
Save for emergency
We have seen so many activities and places shut down, now, it’s an excellent moment to take a moment and think about creating a financial safety net. Money saved can help you in your hour of need and guarantee that you and your family has something to fall back on in the event of an emergency. It provides you additional options later-on by providing a backup strategy in case you need it.
Live stress free
There will be one less reason to stress about knowing that you will not be inconvenienced if things happen in an unexpected turn. Your savings can function as a buffer for you and your loved ones in bad times, allowing you to overcome any financial difficulties.
Spare cash to invest at the right time
Real estate, bonds, and stocks are all overrated in most global markets. After a panic sell-off, if you have a sizable cash position, you could be in a fantastic position to invest when prices are lower. Therefore it makes perfect sense to continue with some of the frugal habits that were popular during the lockdown. For example, instead of going out to eat, cook for your family. Instead of window shopping, listen to a podcast, read a book, go for a walk or travel local attractions to support local community. And when you plan to shop, make sure you take a wee look at the best available deals so that you can save some of your hard earned money. All of these actions will assist you in developing sound financial habits.
Feel under control
Your money will also aid in keeping you organised and provide you a constant sense of control over your life. This will enable you to focus on more important things in your life like your own health, family, job or business.
We all know that the above points make sense and are no-brainers, however, we just need to take a moment, roll-up our sleeves and do some financial planning.
According to OECD (Organization for Economic Co-operation and Development) data, during 2020, in several advanced economies, consumer spending also fell significantly as a result of negative income shocks, economic uncertainty and avoidance behavior.
Hence, its time to take back the control of your piggy bank and save for the right or wrong times. We must not allow another pandemic steal our happiness. Money isn’t everything but is vital - save for safe.
