The year 2020 was tough on everyone. Along with the health scare, it created a massive financial strain with businesses being shut and jobs being axed. If there is one thing that the pandemic taught us, it is the importance of being smart about money. Taking those learnings into 2021, this article throws light on how you can take charge of your finances and be prepared for everything that life throws at you. Let’s take a look at crucial financial best practices you should follow.
The year that went by was a tumultuous one. Uncertainty continues to loom ominously, but there’s a silver lining of sorts. The pandemic forced us to take stock of our emotional, physical, and financial well-being. It taught us some new lessons and reinforced old ones. As we step into 2021, here are some invaluable financial lessons that will hold you in good stead for a long time.
1. Create a safety net
During the peak of the pandemic, many people saw a reduction in their income, bringing to the fore the need to have an emergency fund in place. An emergency or contingency fund creates a financial cushion that can be used to navigate any crisis or unexpected expense without having to compromise on your lifestyle or take on additional debt.
Ideally, it is recommended to have a reserve...