Three Basic Financial Lessons I Learnt in 2020
It was March 2020, and the government had just announced a lockdown. I still remember coming back home from a grocer’s store and listening to the news.
A sudden strike of intense fear gripped me as I was worried about losing the only part-time job I had. The first question that popped into my mind was, “How much money do I have?” followed by “Will I be able to sustain with this for the next six months?”
I am sure I was not the only who felt this way, but the following months did bring a lot of lessons that had to be learnt the hard way.
Here are three financial lessons that the year 2020 taught me:
1. Accumulating material wealth that really matters is necessary
Two years prior to the pandemic, I stumbled upon this global movement called ‘Minimalism’ and I decided to incorporate that into my life. So, I started decluttering my home and giving away things that I thought would never come to use. I gave my art supplies, valuable books, stationery supplies, unused skin care products and unused accessories.
During the lockdown, I suddenly found time to pursue hobbies and take care of myself. It was then I understood that with limited finances, I could not afford to splurge on these items, especially the art supplies and skin care products. That is when it hit me, and I realized my mistake. I never missed the clothes or the jewellery that I had decluttered, but this experience made me look at ‘minimalism’ differently and my relationship with materials.
2. Buying new and high-quality electronic goods is important
Like every teacher round the globe, even I had to migrate to online classes. The excitement of downloading MS teams and exploring new developments in education and technology did seem to be going well until I realized the microphone in my laptop was damaged. In addition to this, my operating system did not allow me to update newer versions of the software. Also, my mobile phone didn’t have enough space to accommodate the Teams app.
I was forced to invest in a new laptop and had to pay a heavy price for not taking my gadgets seriously before.
3. Investment is the essence of a good life
The uncertain times that followed did not assure any financial stability since many organizations had put the recruitment process on hold. It was during this time that I felt grateful to have saved money from my previous job invested in fixed deposits and stock market.
The interests and the dividends I received were minimal but this helped me understand the importance of having multiple streams of income.
So, these are some basic adulting lessons I learnt in 2020 and I wish to follow these for the rest of my life.
