The Future of Finance After COVID-19

Money management tips for beginners | Manage your personal Finance | How to manage your personal finance for future?

A lot of people don’t talk about this when they talk about personal finance; but this is actually pivotal, when it comes to managing your money. Now the very first thing that you need to do in order to not go broke is; to have an emergency fund.

I’m assuming that you already have a job and when it comes to an emergency fund usually what people will say is that you need to have six months of income saved for an emergency fund, but I’m going to go even further and say that you need to have one year saved for your emergency fund so one year of income.

Emergency Fund

Now six months for your emergency fund six months is still okay I want to say that’s actually the bare minimum. Because think about it like this let’s say you’re working at a company and the company decides to let you go.

Because those are just the times that we live in right now, or you’re working at a company you don’t like working for the company, you don’t like the job that you’re doing or you might not even like your colleagues and you decide to end up quitting.

Also when you’re in this case not working you have a lot more free time to do things that you always thought about doing while you were working and what does that mean you’re going to be spending more money.

So while you’re working yes you’re probably sitting at a desk or you might even be working from home; but you’re just focused on your work but now that you have a little bit more free time there might be a restaurant that you wanted to go to or you might just want to visit the zoo or you might even want to go to a different country or a different state to visit your family.

That’s all going to cost money, so when you’re not working it’s more than likely that you’re going to be spending even more money than while you were working. So having more than six months saved in your emergency fund it’s also peace of mind.

Because it might take a while for you to get another job it’s not that easy to get a job within a month or two sometimes it might take six months or even longer in order to get a another job; so in order not to go broke you need to start planning for things that will happen and things that might happen in the near future.

Now what’s the difference between the two something that will happen is something that you have written down as a goal; and of course these are the things that you can plan for your goals you can either like write them on a notepad save them on your computer; as long as they are readily available to you you’re good to go.

And when it comes to goals I look at goals as being short-term, mid-term or long-term goal; so a short-term goal might be you want to buy a new MacBook which you can do within one or two months.

The Future of Finance After COVID-19

Now a midterm goal would be something like you want to go back to college and it’s going to take you let’s say four years in order to graduate from college and you want to have that paid off also or you might want to buy a new car it’s going to take you a couple of months to save up that money.

In order for a down payment for a car or even you want to go and live in an apartment for the first time it might take you a couple of months in order to save up some money in order to move into an apartment.

A long-term goal would be anything that’s 10 plus years so let’s say you have an investing goal it’s something that’s longer than 10 years to achieve that’s going to be your long-term goal.

So cool thing about goals and specifically financial goals is that you’re pretty much holding yourself accountable; so let’s say you have a financial goal of saving X amount of money in your savings account once you hit that goal you can always move the goal post and set up a new goal.

So the next thing that you need to do is to plan for unforeseen able things that might happen that could be quite costly so how does that work. How can you plan for something that you don’t know if it’s gonna happen or not that of course is where your emergency fund also comes into play now some of the things that might happen that you cannot plan for is. For example, your car breaking down I took my car to get fixed I actually had my oil changed and something that cost like 20 or 30 bucks ended up costing over 800$.

Because I also noticed that my brakes weren’t working correctly they were actually bent and I just decided to go ahead and fix the brakes, also because I do have that emergency fund; that I can rely on and I didn’t even have to think about it because my safety is a lot more important than riding around in a car. That’s not working correctly.

so I just went ahead and got it fixed now another unforeseeable thing that might happen usually has to do with your health you can never know when you might get injured or when you might injure yourself.

Even myself a couple years ago back in 2018 I ended up partially rupturing my Achilles and I had to go to the hospital in order to get surgery now I’m fine, because I had to go through physical therapy I had to learn how to walk again but I’m fine now and I never really thought about the amount of money that I had to pay because my health was more important than the amount of money that I already saved up.

So having that emergency fund always helps out and in the end my work that I used to work at they ended up paying for everything that happened because it actually happened on the job.

Pay your debt down as fast as possible

Most of us will accumulate student loan debt credit card debt or even paying off your car loan now when it comes to student loan debt you got to do what you have to do so pay it down as much as you can with how much money you’re making.

The Future of Finance After COVID-19

I know student loan is a big issue luckily for me like, I worked my way through college so I finished college with any student loan debt. Now when it comes to other forms of debt I get it let’s say you buy a car and you have to pay your car loan yeah I get that but when it comes to credit card debt that’s something that I always try to stay clear of so every single month.

I pay off my balance in full and the cool thing about if you have a credit card and you’re actually using it wisely so you’re paying it in full you’re not utilizing everything on your credit card is that you’re actually building up your credit score.

Of course when it comes to paying down your debt and why you want to do it as fast as possible because that will weigh on your shoulders it’s like an albatross. It’s always following you I have friends that rent the student loan route and they’re still paying off their student loans and I’m looking at it, and I’m like wow that could have been money that you put as a down payment on a house or even money that you could have invested in the stock market.

So here’s a question that I get often from friends and family members do I pay down my debt first and then start investing or do i invest while I’m paying down my debt. My answer has always been you want to invest while you’re paying down your debt.

Now why do you need to do both at the same time here’s why when it comes to investing right now nowadays it’s extremely easy to start investing and you don’t even need to have a lot of money in order to start investing you can invest with one dollar that’s how much you can start. Also keep in mind that the younger you are when it comes to investing the more time you have that’s actually working on your side in order to build your wealth, accumulate that wealth before you hit that retirement age.

So for example let’s say you’re 25 now and you have a goal of retiring at the age of 65 you have 40 years in order to invest and grow your wealth; compare that to somebody who’s just been working their whole life to pay down their debt, so they’ve been paying down their credit card debt they’ve been paying down their student loans and at the age of 50 they finally start investing. They’re most likely not going to be able to retire at 65 because like I said investing is a journey you cannot start investing now and think you’re going to be able to retire on your investments within 10 years.

Unless of course you get really aggressive when it comes to stocking away money for your investments but more than likely it’s not going to happen that fast in order to pay down your debt faster; It would be awesome if you had some additional income streams that you could rely on this is kind of where passive income comes into play.

So there’s a lot of talk about passive income and especially passive income not being that passive but let me give you some examples of how I make some passive income on the site I sell book in google. so that’s one way that I make passive income and that’s actually really passive I don’t do anything for it; I don’t even advertise those books another thing is t-shirts.

I sell it so I am on amazon merch and I sell a couple of t-shirts every single day which adds up when you look at how many t-shirts I sell for the month and then also I have dividend income from my stocks that I buy.

How can you start with making any type of passive income definitely you can google passive income ideas but the ones that I listed the way I make passive income definitely pay attention to those because those are the ones that work for me it’s not easy to make passive income but once you actually found something that makes you money then the Next step is to try to scale it.


When it come to investing; especially if you work at a company the company might offer a 401k that’s definitely something that you want to check out because there’s usually a company match so let’s say the company matches a certain amount of money that you invest the company might matchup to two or even up to five percent of what you actually invested and of course you’re not limited to only invest through your company.

You can also open an individual retirement account or you can go to one of the big companies and open up a traditional brokerage account now when it comes to the 401k you will always be limited by the options that the company chose for their employees to invest in those are going to be usually mutual funds.

A couple of index funds and a couple of target date retirement funds now with target date retirement funds the cool thing is that they automatically rebalance your account the closer you get to that retirement age.

Let’s say there’s a target date fund that says like target date fund 2060 so the closer you get to 2060t his fund automatically rebalances your account into more safer assets. So when it comes to investing what’s the best way to start so you buy individual companies so to start investing like that or would it be better to start investing in a mutual fund or even an index fund.

If you’re a beginner I highly recommend you start out investing in an index fund because you will have automatic diversification, compared to investing in individual companies and a good one to take a look at and do some research on is the s p 500 index fund. Once you’re more comfortable with investing you can always change your goal and start investing in individual companies but honestly most people invest in either an index fund.

For a mutual fund because it provides automatic diversification and it’s with a mutual fund even an index fund you don’t constantly have to watch your portfolio and let’s talk about the bonus.


Health plan

Let’s talk about your health; How does health play an important role with your personal finance okay this is your health is your personal finance what’s the connection well there’s a lot of connection between your health and your personal finances; because think about it if you’re healthy you can work longer if you work longer you can make more money.

The Future of Finance After COVID-19

Working longer meaning you have more years that you can stay in the job market if you’re healthy you’re also somebody was less likely to go to the doctor or somebody that needs to go to the hospital and as you know like hospital bills those can add up quite fast. So let me know what you thought about these personal finance tips.

— Susanna tips and tricks

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What is financial freedom?  This is a question that many people ask, but it is not always easy to answer. Financial freedom means different things to different people. For some, it might mean being able to quit their job and travel the world. For others, it might mean being able to provide for their family without having to worry about money.

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