Money lessons

from the COVID pandemic

Personal finance experts weigh in on what the pandemic has taught them about money and life.

1 Stalling can be dangerous Independent journalist Bob Sullivan learned: During a pandemic, you’re going to hate yourself for procrastinating. Maybe you always meant to stock up on supplies in case of a natural disaster. The pandemic hits and you wish you had at least gotten a few extra rolls of toilet paper.

Procrastination can cost us in many ways: the minor car problem that turns into a major repair, or the chance for a low mortgage refinance rate that slips away because we don’t finish the application.

Stalling can be disastrous. Dying without life insurance can leave those you love most in a terrible position. Not having a will or advanced care directives can do the same.

“So when you think, ‘I have plenty of time to deal with this,’ that might not be as true as it seems,” said Sullivan, who writes the Red Tape Chronicles newsletter.

2 Virtual is the norm Many companies resisted remote work until they had no choice. Now, some organizations plan to allow their employees to work remotely after the pandemic ends.

Even when we’re able to move more freely, we may prefer doing more from home. More people are shopping online, video conferencing with friends and family, using delivery services, seeking health care through telemedicine portals and paying with apps instead of cash or cards.

As a result, business owners need to think about how to reach people online as well as in person even after the pandemic ends, says Lynnette Khalfani-Cox, CEO and founder of MoneyCoachUniversity.com.

“I don’t know how anybody is going to survive in the future if they don’t have a hybrid strategy that incorporates digital at some level," Khalfani-Cox said.

3 Reevaluating risk Erin Lowry, author of “Broke Millennial Talks Money,” says the pandemic has demonstrated that there’s no such thing as a recession-proof industry or career.

Advice to have a large emergency fund can sound tone-deaf, since saving even a small amount can be difficult for households hit hardest by the pandemic. But the soaring personal saving rate indicates many of us do have the ability to put aside more, and that includes Lowry.

“Previously, I felt really comfortable with four to six months’ worth, but now I want at least a year’s worth of living expenses in cash,” Lowry says.