February 18, 2013
Ten Financial Lessons Hurricane Sandy Taught Me about Money
Hurricane Sandy left a lot of things devastated. Many people are still going through the aftereffects, trying to recover from the slump. It caused a huge loss to the economy, ruining houses and industries. However, at the same time it taught a lot of lessons too. Given below are ten lessons the destructive hurricane taught me.
1. Save Money
It is important to save money for the rainy days. You never know what could happen tomorrow. It is very important to plan carefully. Disaster management, fortunately, is not a taboo subject; however, many people think it is only the authority’s responsibility. Hurricane Sandy made me realize how important it is for everyone to take care of their own goods, and not leave everything on others.
2. Invest Money
It is important to invest money, which only loses value for the time it is locked inside your safe. I, fortunately, had made a few investments that kept my money secure. I suggest you, too, follow the same path.
3. Do Not Put All Your Eggs in One Basket
It is never a good idea to put all your eggs in one basket. Always invest your money carefully in different industries/fields. Natural disasters like hurricanes leave economies upside down. Everything, from currency rates to gold prices can be affected. This is why it is important to play it safe and put your money in different options, so that if one flutters you can always fall on another.
4. Look Abroad
A lot of people are now considering this option due to its benefits. Disasters that hit the US economy will not affect other countries’ economies in the same way, which is why it becomes useful to invest money abroad. However, make sure you choose a country that has a flourishing economy so that your money is secured.
Standard insurance policy does not cover natural calamities. You will have to do a good amount of research and find an insurance provider who provides security against natural calamities. Insurance can stop mother nature from becoming your worst enemy. Simply, get your house, investment and property secured so that you are secured in case any such unfortunate event strikes.
6. Use Money Wisely
Money is scarce and should be used wisely. You need to understand that your financial condition may change anytime, which is why it is important to be careful about your spending habits and use money wisely. Do not live under debt burden. It is easy to live on a credit card, but such thing can have long-term negative effects. You can learn more about credit card debt at Consolidated Credit.
7. Look for Opportunities
Look if you can find any help in government policies. There are many clauses that you can use to save tax money if you live in an area hit by a natural disaster. Many organizations also provide aid in financial issues if you are in hot water. Make sure you look for such opportunities and cash in on them.
8. Nothing Lasts Forever
One of the main lessons I learnt from hurricane Sandy is that nothing lasts forever. I saw my beautiful house getting ruined with nothing rubble there now. Huge towers and big shops got destroyed within a matter of seconds. It has to be understood that nothing is immortal and you need to plan everything accordingly. Whatever you have is never enough and you should continue to work hard to secure your future.
9. Debt is Never Good
I am currently in a lot of debt, and finding it difficult to payback. Loans might look like an easy way out, but it is not always a good idea to depend on someone else’s money. This is one of the most important lessons I learned from the hurricane. Also, I came across Consolidated Credit during this time which helped me a lot with my credit card debts.
Lastly, I learnt that help is always there if you try to find it. When I was under debt, I turned to my best friend who helped me by offering an interest-free loan. If you also have such friends, you can turn to them and know that the bad phase will eventually wash away.
These are the simple money lessons I learnt from Hurricane Sandy. Life, actually, teaches us something every day.
About the Author
Celina writes weekly columns for a daily. She lives in an area that is among the most widely affected areas by the disastrous hurricane Sandy. She is trying to bring things back to normal through her writings.