Money Lessons I’ve Learnt Over 2020

I’m sure we can all agree that for the most part 2020 has been a write-off. I’ll always remember it for the good things that happened; I got engaged, I turned 30, and bought/ renovated our dream home. But from a financial perspective, it’s been a bit of a whirlwind. I like to pride myself on being very good with money, but I’ve learned some money lessons from 2020 that I think is very important. So I thought I’d share them with you all.

Money lessons: Don’t neglect your emergency savings

Thankfully we started our emergency fund at the end of last year and had a bit of money in there when the country went into lockdown. For us, this was essential as Luke didn’t work for a large chunk of time. We were eligible to claim the self-employment grant but that came months after lockdown so our emergency fund helped us muddle through those super tough times.

One of the biggest money lessons I’m sure we’ve all learned is that we shouldn’t neglect these savings. So many people sadly lost their jobs this year or were out of work for long periods of time. Even those on furlough may have lost 20% of their wages. And having an emergency fund can tide you over. Our biggest priority is paying back and upping our emergency fund goals to help for the future.

Discuss finances with your partner

If you’re living with someone, or even just dating someone it’s important to discuss your finances. I’ve always believed in being open and honest about money, but this year has taught me that even more. Discuss any debts you may have that will need paying off whether you’re working or not. Discuss the savings you have or the money you have aside. It doesn’t mean the other person is entitled to any of the money, but it’s always good to know what you’ve got in a pot just in case.

I’ve heard loads of stories this year where one person in a couple lost their job or was out of work and the other was supporting them both for a period of time. And that’s why it’s so important to be open.

Money lessons: We should always reevaluate our savings

I’m sure most of our spending habits are totally different now to this time last year. Gone are the days of spending loads of money on meals out, drinks at the pub, holidays and party clothes. Now it’s all about fancy groceries, loungewear, and home improvements.

As things are so different reevaluate what you’re spending (and saving) on and implement some changes. Maybe you used to get your nails done every month, but you’ve realised you can do it yourself so you can save that £25 a month. You may not be saving for a holiday so you can put that money into savings for something else.

Reevaluating your savings is one of those money lessons we should be doing all the time, but especially so in 2020.

Don’t put off the important things like writing a will

This might sound a little morbid but don’t put off those big important things for ‘one day’. It might be getting life insurance, writing a will, or sorting out that mounting pile of credit card debt. Whatever you’ve been putting off, bring to the forefront of your mind, and start actioning things.

While I never want to think about it Luke got life insurance as he’s in a higher-risk workplace. When we bought our house we set up wills just in case anything was to happen. These things can give you peace of mind.

Money lessons: Support local businesses

Too many local and small businesses have been forgotten about when it comes to government help which is so sad. But if nothing else 2020 has taught us all that supporting local businesses could literally be putting food on someone’s table. And your purchase is helping give them a wage alongside helping to develop themselves and their business.

Yes, I’m sure I’ll still use Amazon, or make the odd ASOS order. But I’m trying to make more conscious decisions about where I buy things and supporting those amazing smaller brands.

What money lessons have you learned in 2020?

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