The recent pandemic has affected many people throughout our country as well as throughout the world. Although society has shown a huge tendency to pull together and help our neighbours as we get through this tough time.
One of the biggest effects of this crisis has been on the financial side of things. Although the loss of life has been absolutely tragic and the lockdowns have been frustrating, it is true that we will all have to continue on with our lives after our “new normal” is established.
What will the economy look like and what will individuals have to deal with when it comes to their budget, their debt, and much more? We are breaking down exactly what to expect as the crisis continues across the globe.
Changes Are Coming
Some industries are being completely changed by the coronavirus pandemic. While some companies like Zoom have found tremendous growth, other industries like the major airlines or event ticket companies have seen their revenue go to almost 0 quite quickly.
Other major industries like restaurants, salons, and gyms have been put completely on hold.
We have even seen children’s activities like dance or martial arts being taught completely online via the aforementioned Zoom platform.
These changes are not all going to be temporary and many of these changes are going to have lasting effects. We’ll look at some different industries and how the pandemic will change each of them.
Many students have found themselves being locked out of college dorms and may face the potential of online classes heading into even the Fall Semester.
With this new environment, many people are turning to smaller colleges or even community colleges due to the fact that they won’t be receiving the full college experience.
This could help a lot of people in the long run because it will help them avoid debt when buying into high student loans. However, of course, it could also be negative if some people aren’t able to get admitted to the college of their dreams.
It’s going to be interesting to see how this plays out in the long run, with many colleges already losing tons of students as it stood before the pandemic.
Even with the stimulus payment that was already spent by many, consumers are likely spending less on frivolous purchases.
Of course, purchases of video game consoles and other consumer goods may have risen in the recent months, but things like event tickets and airline tickets are going to see big hits well into the future.
These industries have seen almost all of their revenue dry up while also being hit with requests for refunds. While it’s important for any business owner to manage their cash flow well; it’s safe to say that almost none of them saw a pandemic on this scale happening.
That being said, consumers are having to contend with not receiving refunds at a time when many people need food for basic necessities and it is causing a lot of backlash towards companies in these industries on reviews as well as social media.
Unemployment and Changes in the Workplace
One of the biggest problems that society has seen is massive levels of unemployment as well as a lack of hours for those who are still working.
These problems are exploding as many individuals also struggle with a mountain of debt and a lack of funds before this situation even started.
The jobs that are deemed “essential” will probably see a lot of growth and higher demand as these industries continue their work or even see more demand for their services.
However, the less essential positions that have less pay are going to suffer. Minimum wage jobs may be reduced in a large capacity and may never return to the levels that they are at now.
This loss of minimum wage jobs hurts some of the people who are suffering in the economy the most. These are people who could potentially have a lot of debt and would benefit greatly from debt relief programs and companies who offer those services.
Now, they will be forced to fight more competition for fewer jobs or face the likelihood of staying on unemployment longer than they would prefer.
Saving Money for Rainy Days
One thing has become clear in this “new normal” environment – the importance of getting out of debt and saving more money is more important than it ever was.
During the coronavirus, every day has become a “rainy day”. This saying used to mean that you would have money leftover if you lost your job and had to find a new one.
However, we are finding that a rainy day could become a much more broad term in the new society.
Now, everyone has been forced to shelter in place for long periods of time meaning that some people could not get to work even if they wanted to and business owners have been forced to shut their doors by the government.
Many business owners were prepared for a downturn in sales but never contemplated what life might be like if sales completely stopped.
These kinds of events are disruptive on a massive scale and the business owners who have a lot of money saved up will be in a much better position than those who have had to borrow money simply to stay afloat.
Others may be finding themselves in need of debt relief due to the overwhelming situation that they have been placed in. Gig workers have also been affected in a major way although some have found ways to pivot into areas like food delivery.
Depending on your place in the economy, you may have found that your skills were in higher demand or lower demand, and either way, you will be in a better place to capitalize on these changes if you have money saved up.
The pandemic will force many people and businesses to adjust their financial strategies causing effects that we will see for years to come.