How to manage your money during the COVID-19 pandemic: Part 3
Happiness isn't something you can force. The more you chase it, the more elusive it becomes. Rather, you should strive to build a life that you're content with. ~ Trent Hamm
In the first post of this series, we talked about why, with all the economic uncertainty and so many people reliant on government support, now is a good time to be careful with your spending. This is the first step to building a better financial life.
People around the world are thinking carefully about the future; they are searching for more financial stability, safety, and security amid rising uncertainty. Yet what has struck us most is how much those goals—and what they mean to people—have changed. ~ McKinsey
In the second post, we talked about how to take that a step further by increasing your income; not just to have lots of money in the bank but as the next step to get from the life you have to the life you want.
If you want to change your life, you have to consider all of the things that you can control – your time, your spending choices, your emotional responses to things, your work, and on and on and on – and ask yourself how you can use them to move in the direction of the life you want. ~ Trent Hamm
But what should you do with your extra cash from staying at home? One idea is to invest your money; not for short-term profits but for long-term success.
Invest in yourself, and do it sooner rather than later. Plant lots and lots and lots of apple trees in your own life. Invest a little time and energy and money now so that it will produce big returns later. ~ Trent Hamm
Another option is to support the businesses you care about. But there’s no reason to feel guilty or obligated, as long as you take the time to make the best decision for you.
The truth is that if you're faced with a major decision in life where your options are obviously being steered by financial realities, lean into it. Make that major choice with financial realities in mind. ~ Trent Hamm
Ultimately, these three strategies (spending less, earning more, and saving for the future) are all different elements of the money toolbox. All of them are also part of the financial changes to make for your future success.
Frugality and saving-money strategies will help you pay your rent and get rid of your debt, but they won’t make you wealthy. On the other hand, career and investment strategies won’t help you make the rent this month or pay down your debts right away, but they are the path to long term wealth. ~ Trent Hamm
Indeed, one way to succeed at your long-term financial goals is to apply a systems-based approach to personal finance and to think in terms of the bigger picture of your life.
[Think] about the person you truly strive to be in terms of finances. Don’t think of it as “I want to be a financially successful person,” but “I am a financially successful person, just one that happens to be climbing out of a tough spot at the moment.” Start from there and build daily systems and routines that are in line with that vision of yourself. ~ Trent Hamm
Ultimately, the changes you’re making should be for you and not for anyone else. That’s why it’s important for you to ignore other people and focus on yourself.
The only metric that matters is comparing yourself to where you were and to where you want to be. Are you better today — in the direction you’re concerned with — than where you were yesterday? A year ago? Don’t worry about what other people have done – they’re not you, with your unique set of traits and skills and advantages and disadvantages. Worry about what you’ve done. ~ Trent Hamm
That concludes our series! While nobody knows what the future holds, you can always take action to protect yourself and build a life of financial success.
It will take time for health concerns to resolve. It will take time for businesses to fully adapt. It will take time for people to build savings and feel more confident about their situation. Be patient. Things may not be better tomorrow, but they will get better. ~ Trent Hamm