You Need to Save More Than 1/2 of Your Income! Why bother? How?
The most unforgettable lesson that came out of the 2020 pandemic could happen again this year or next.
It was only very recently that people have realized the consequences of not leaving small money in the safe for the future; to appreciate it for many reasons including survival, let alone retirement, marriage, or investment.
One month after the deadly coronavirus, aka COVID-19, initiated from Wuhan in late 2019, the whole world went into compulsory lockdowns forcing the closure of international borders and shutdown of economies to control the spread of the virus, consequently resulting in pay cuts and loss of jobs for more than 200 millions people worldwide — especially affecting those on low income and others living from paycheck to paycheck.
While some companies opted their employees to work from home using online setups — made possible by some of the latest communication technologies! Nonetheless, the majority struggled to manage the essentials such as food, rent and other household bills.
On the contrary, those who managed to save or had alternative income streams have struggled less than those who relied most on one income source such as 9-5 jobs.
Many countries offered unemployment benefits for their country fellows. Unfortunately, that didn’t provide a similar amount of coins, unlike their jobs. Whereas those who managed savings before the pandemic showed some resilience to COVID economy damage and coped a lot better than those without savings.
Start Saving Money Now!
I would be so generous as to advise everyone to save money during prosperous times — at least half or one-third of your income has to be marked into a saving category. This will certainly be your survival kit if you suddenly lose your job for any unexpected reason.
Nobody knows what tomorrow holds!
One fact is that your single-source income is never enough to cover your basic living at the same time you throw coins in the safe — it isn’t your fault, because the whole system is designed to keep the poor and middle-income people poor! Sad truth!
Better prepared than sorry!
The best way you could save a great deal of money while relishing a fair living standard is that you need to have two or more alternative income streams regardless of your main job type — ideally, you can make passive income or residual income from both offline and online setups. Investments work too but you need to be really careful with whom and where you pump your money into.
The next step after reading this article is to write a realistic financial plan that suits your lifestyle and income size. You could also try to write some specific plan for savings if you want to.
And finally, a bit of bonus advice — it is never too late to start doing something! Start saving money now! Think and plan to grow your figure in the safe slowly.
