How Pandemic Prove Us Wrong and Humble Us

In the past, I always advocate to have at least 6 months emergency fund. It’s all fine till the pandemic hits.

We always thought that we are prepared financially. We assume that we have enough to last the hard times. This pandemic proves us wrong. It humbles us.

Having 6 months of emergency fund is really not enough during the times of pandemic. Unlike other financial downtime which only last few months, this can last for years. The effect on job sector is really devastating, where millions of employment lost in in the past months. And with no vaccine in sight, it could probably become worst before it even gets better.

It’s true that emergency fund can help us tide the downturn. However, if you only have 6 months prepared, it may not be enough and you might find yourself in deep financial trouble afterwards.

In the past, I always advocate to diversify investments to protect our capital and minimize risk. The strategy proves to be working as usual, until pandemic hits.

During this time, we learned that almost all sector are affected. Not just affected, but truly devastated. Losses are inevitable. Most investments are wiped out.

Diversification works, but not on a scale the pandemic affects us.

Sometimes, we become arrogant and overconfident that we have figured it out financially. Until time came that it will be tested. Then and only then, we can realize our flaws.

May this pandemic teaches us the better way of handling our finances. Let’s continue to move forward and learn from our mistakes.

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