As the vaccine rollout continues for the COVID19 pandemic, it’s now time to discover post-pandemic normality. This global pandemic led to many global economic changes. What is the financial aftermath? What do everyday people need to know to protect their finances in the future?
Whether you lost your job, struggled with your business, or started working from home, the world is a changed place after 2020. If there’s one thing that’s clear, it’s that we’re entering a new normal. In this guide, we’ll discuss the financial aftermath of COVID19 to uncover the new definition of post-pandemic normality.
Financial Stress and Mental Health
First, the financial stress of the COVID19 crisis affects Aussies very intensely. Some lost their jobs, while others had to shut down their businesses. There were fewer opportunities to work as cities closed down to keep people safe. All of these changes led to an increased financial burden, especially for those already struggling.
Mental health and finances are already closely related. If you’re struggling to afford your bills, pay down debt, or make ends meet, then this isn’t news to you. In fact, 46% of people who have significant debt also have a mental health problem. Of 5,500 people surveyed, 86% reported their financial situation makes mental health challenges worse.
Though the pandemic might be coming to an end with the rollout of the vaccine, this stress won’t vanish overnight. People need to consider the long-term effects of a pandemic on their mental health, and this ties into the financial aftermath. From relationships to day-to-day stress, all areas were affected by this financial crisis.
New Role of Saving
Additionally, saving plays a new role in our daily lives. While saving has always been important, that was never clearer than during the COVID19 pandemic. With people staying home from work in record numbers, many found themselves relying fully on government payments. While this might have helped, most people turned to their savings.
What happens if you don’t have an emergency fund or any money for a rainy day? That meant you needed to live on what you had, making the situation tight for many families. Because of this experience, more Aussies are focused on savings than ever before. There might be a hesitancy to part with funds or overspend, and this can be a good thing.
If nothing else, the COVID19 pandemic showed the value of creating an emergency plan. You never know when you might lose your job suddenly or lose your health. It’s important to know you and your family have a plan in place no matter what.
The Changing Workspace
The COVID19 changes didn’t just affect personal finances. They also changed the way we work. How have workplaces changed, and will these things continue into post-pandemic normality?
- Remote work: One of the biggest changes is the shift to remote work. While many were remote workers in the past, this has only become more common as companies hire employees from anywhere.
- Occupations: A reported 25% more workers may need to switch occupations. There’s an increasing demand for those in tech, service fields, and medicine.
- Wellness: Employers are also putting more focus on wellness than ever before. This means more opportunities to protect workers’ financial, mental, and physical well-being.
- Rising wages: Lastly, many workers are experiencing rises in their wages as the economy recovers from COVID19. While this can be a slow process, it’s a welcome change.
These changes were unexpected during the pandemic, but they’re here to stay. The good news is they offer greater opportunities for employees to take advantage of rising wages, security nets, and work flexibility.
Rise of Side Hustles
Last but not least, the pandemic’s new normal brings a rise of side hustles. While side hustles and the gig economy were booming prior to the pandemic, the COVID19 crisis only supercharged its impact. Not only did the pandemic reveal many of the challenges of traditional workplaces, but it made a new market for growth and innovation.
Now is the time to explore side hustles to bring in extra income. Whether you want to deliver food, create a product for your own ecommerce store, or become a freelancer, the world is a wide place. More companies are outsourcing professional services than ever before, and there has never been a better time to be creative.
Are You Ready for Post-Pandemic Normality?
We all feel like we’re trapped in a whirlwind after the past year and a half. It’s normal to need time to adjust to all of these changes, especially as we enter a new era of post-pandemic normality. The pandemic took a huge toll not only on relationships and health but also on our finances.
If you need help navigating the financial aftermath of COVID19, you’re not alone. Contact the professionals at Debt Busters today on 1300 368 322 for customised help. Our team are here for you each step of the way. Together, we’ll adapt to these changes with confidence.