Life in COVID – Risks from Financial to Everyday Decisions

Last Updated on April 29, 2021

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As the pandemic takes its toll on the world, every decision now demands a good thinking time, especially in the financial sector. People can no longer afford to make financial decisions quickly as times become even more uncertain and finances become limited.

Moreover, COVID has influenced how we make even the most basic of plans. In this article, we will talk about how drastically things have changed by explaining what people are now viewing as high-risk behaviors and their take on them.

Risking Finances – Yes or No?

It is no secret that COVID brought disastrous effects on the economy. Although things have gotten better to some extent, many households are even now struggling to make ends meet. With fewer jobs in the market and less income, people have taken a back seat on spending their money however they wanted prior to the emergence of COVID. What about taking financial risks in these trying times, you might ask!

Naturally, those infected believe they will no longer subject themselves to risks, according to a survey. However, some individuals think this is the right time to take financial risks, while 48% state they will use their finances carefully. The world saw unemployment hit new highs as several businesses went bankrupt and had to close, so finding work became tougher. With lockdowns and restrictions imposed everywhere, people are getting fewer working hours, making it no surprise that most people want to be as cautious with their money as possible. However, 32.17% still believe that they will keep on doing what they do and make no changes to their spending patterns.

What’s the Take on Insurance?

Now more than ever, with health on the line, insurances can come to the rescue in reducing any financial troubles. Therefore, many people upgraded their health insurance seeing the rising death and infection toll.

The pandemic scared many into worrying for themselves and their loved ones’ lives, so people bank on insurances to be useful. Around 20.27% upgraded their coverage, whereas, 44.77% had no changes made to their insurance policies. As life insurance gains more popularity, 47% believe that not having insurance is the riskiest thing in this pandemic.

Redefining Risk

With COVID on the rise, lockdowns happening off and on, the world has seen the word “risk” find a new meaning. Activities that were once taken for granted have now become a luxury. So what constitutes risk? Is it only all about financial matters? Not anymore. People believe that going out on a whim, like taking a stroll in the park, getting groceries, or running, is now extremely risky behavior.

Moreover, seeing people go without masks has become the scariest thing ever. No one wants to be around someone flaunting their mask-less state and subjecting others to the virus. Similarly, eating inside restaurants is another thought that terrifies many.

The Investment Side

When it comes to investing in these difficult times, opinions vary. While experts might suggest that these times are the most erratic for the stock market because you can never know what the next day will bring, people are still doubtful and think the stock market might be a good bet.

Take GameStop’s example; while the company was ready to crumble, out of nowhere, its stocks began to rise, and weeks of volatility ensued in the stock market. All this was spurred by a group of Reddit users coming together and aiming to short squeeze some hedge funds who were betting against GameStop. This incident also gave many people reason to believe that stocks can go up any day, so they still believe them to be profitable.

Conclusion

Undoubtedly, the world is struggling during these difficult times, and lifestyles are changing every day with every decision. However, there is still hope for a better tomorrow. While many are cautious with every step they take, some are still living in the pre-COVID world where things were much different than the world we live in now!