The trouble when one deals with personal finance, it is that it is easy to pay in the morality, especially these days, where the specialist, with his accusing finger that smells like Purell, could be forgiven for thinking it justified to throw to his audience : “I warned you before ! “
I am not more catholic than the pope, and like you, the last thing I want to hear, this is what I should have done to avoid having to negotiate arrangements with my banker during a pandemic.
“Yes, what a great idea for the cushion ! “As if to buckle his seat belt allows to emerge unscathed from a face-to-face to 150 km/h with a semi-trailer. Well, okay, it does not hurt to attach and lift the foot a little. That said, although it is amochés, it will not come out less alive from this ordeal.
Now, that is-what we can learn from the event ?
The caution will be trend
When it comes to personal finance, what is it if not a set of precautions and rules of prudence ? It is necessary to recognize, that does not make it a field of the most popular when nobody has the slightest notion of danger.
There is not even a month, our “problems” on the economy was the shortage of labour and soaring prices of houses. We wondered what to make of the surplus of the government and there were fears of a stock market correction, which we enriched for too long.
We could no longer see the end of this good time, particularly among younger people, who have known nothing else. For the past three weeks, a concept that is quite painful to the disaster is impregnated in our minds (and our finances). As our great-grandparents, we can say that it has been known, ” the crisis “.
That does not risk pushing the great principles of personal finance, but it will probably change our view of them. We will be more inclined to accede to it, proudly even.
For stock market investments, a roller coaster in which we are caught, reveal to us our true tolerance to the thrill. We’re going to have to say it : we love less that we thought.
We will be more careful for a time.
The appeal of ” downsizing “
The financial problems we often fall over in the wake of events, such as a job loss, a divorce or an accident. When they are hard, it’s that we were already in bad shape.
It is that they are largely the result of overconsumption : the house is larger than needed, new cars, annual trips, restaurant outings, garden shed, breath-sheet… you spend to the limit of what we allow our income, and a little more.
Among the households who reported living pay to pay, there are of course people on low incomes for which our advice may not be used for anything. But we should not delude ourselves, there is a good number to maintain a frenetic pace for which they do not have the means.
Currently, Quebecers are confined to the house, without the ability to consume and compelled the simplicity. And they don’t die. They discover the kitchen and the games as a family, they fall in with friends and relatives via video conferencing. They speak to their neighbours.
Some wonder if at the end of the crisis they will be able to keep their house and their cars, if they will find their rhythm before. Many questionneront rather on the relevance of the make.
Towards better hygiene, financial
What is it that we wash our hands more often and for longer than ever ! In three weeks, the reflex is well installed. I won’t be able to consider returning to a place frequented without me washing his hands at the back, curve to flatten or not.
In the same way, the pandemic has caused many households to discover the software Excel and to write their spending and their money, from their cennes. Will we see the return of the family budget ? It is well possible !
Not only the budget is essential to make efficient use of limited resources by the crisis, it will continue to get back on their feet. As the washing of hands, the budget will come back in force.
In the long run, it will reveal may be THE secret, a very simple, healthy finances and peace-of-mind : get used to spending less than you earn.