"Assuming you have no income for two months, how long can you last?"
The COVID-19 pandemic has turned such a hypothetical question into a reality. Previously, when faced with such a question, many people would laugh it off, thinking who would be without income for two months? If you lose your job, just find another one; that's the mindset of most people.
However, this pandemic has taught us that accidents are everywhere in life, and many things do not go as we wish. The pandemic has made it a reality for the entire population to stay at home. It's not that jobs are lost, but rather the job positions are there, yet we cannot start working.
Having no savings could indeed lead to the inability to afford even a meal.
Previously, the news reported on a case like this: before the New Year, a man's child fell ill. To pay for the child's medical treatment, he used up all his savings. He had planned to return to work after the New Year and regain his income, but then the pandemic broke out, and everyone was confined at home, unable to resume work.
With the sudden loss of income, life still had to go on, and daily expenses for food and drink were inevitable. When he reached the point of having no money left, feeding his entire family became a problem. Adults can make do, but children cannot. Thus, the man thought of seeking help from the government.
My reflection on this matter:
Although the problem was quickly resolved, I thought a lot about it.
Firstly, the amount of savings is crucial. Although the news did not mention how much money was spent on the child's treatment, since it was not mentioned, it should not have been a serious illness, and the medical expenses should not have been too high. Yet, it depleted the savings, indicating that the original amount of savings was not substantial.Second, without a stable cash flow, there is no sense of security. A stable cash flow is extremely important; for many people, it is their salary. If work comes to a halt, how many can still obtain a cash flow? And without a cash flow, where does the sense of security come from?
Third, the structure of income should be reasonable. The most rational income structure is to have both active income, which is earned through labor, and passive income, which is income that can be obtained without working, such as rent, interest from savings, investment returns, patent income, etc.
Although staying at home, I am not panicked, thanks to financial management.
During this pandemic, like most people, I have been staying at home, but I am not panicked at all because I have made all kinds of preparations in advance, and all of this is thanks to my exposure to the field of financial management and learning the skills of financial management.
I am just an ordinary person. Before, I did not understand financial management and did not even save money; I can say that I did not even think about it. I earned a salary from work, and when the salary was paid, I would buy whatever I wanted and spend it as I pleased. As long as I kept working, I would always have a salary; that was my previous mindset.
Guided by such thinking, I really had no savings before.
Later, I was fortunate to be exposed to the field of financial management, systematically learned financial knowledge, and gradually fell in love with financial management. Financial management has slowly become a part of my life, leading me into a broader and richer world.
After getting involved in financial management, I understood that wealth needs to be accumulated; otherwise, even though I created wealth, it was all consumed, and in the end, I would have nothing.
I understood that life needs to be planned, to be prepared for the unexpected. Although it seems calm and peaceful on the surface, life is full of accidents and risks. If I do not prepare in advance, I can only passively accept the unexpected when it comes.I understand now that consumption needs to be treated differently; not all consumption is necessary. Some spending is merely for the sake of appearances, serving no other purpose than to unnecessarily deplete your wealth.
Therefore, I began to change my lifestyle, sorting out my assets and liabilities, and planning my life. I started to create a savings plan, setting aside a fixed amount each month.
I began to establish an emergency fund and placed this money in Yu'e Bao, ensuring that I have funds readily available in case of unexpected events.
I started depositing money and purchasing financial products, allowing my idle funds to generate some returns.
Following the knowledge I've acquired, I've tried investing in funds and stocks, and I secretly rejoice every time I see the account profits rise.
I began seeking to build my own passive income system, ensuring a continuous stream of passive earnings.
Thanks to these efforts, during the pandemic when I was forced to stay at home, I did not panic because I had enough savings to sustain my life and passive income coming in. Although the days at home were somewhat boring, there was no anxiety.
In fact, these are not the most important things. The most important change is that my attitude has shifted, and I am more willing to learn. I know that knowledge is the key to changing your income and economic situation, whether it's the ability to earn actively or passively; both rely on knowledge. As a result, I spend less time watching TV shows and playing games, and more time reading and learning.
After all, to a certain extent, learning is earning money, don't you agree?
