Civilization as we know it is being put on its head, forcing new perspectives and feelings for most people who are just trying to manage day by day and maintain some form of normality. This struggle gives rise to new ideas about living, working, family, and so on, but is now the right time to make life-altering decisions?
The pandemic has forced upon the world economic and social quarantine, removing peoples’ ability to function normally, sheltering in place and staying distant from colleagues, family and friends. This creates enormous emotional strain as we are social creatures, which can influence depression and one’s state of mind. As the economy contracts and the labor force shrinks further, more people will face a numbing reality of no longer having an income. Torsten Bell, director of the Resolution Foundation think-tank, says, “There is the scarring as firms go bust and unemployment rises — the question is how deep it goes,” he says. “There’s a very strong relationship between unemployment and wellbeing, as well as mental and physical health. Lasting high unemployment will have a significant effect on the country’s health.”^1 He goes on to say that most people don’t have adequate savings and they will be the first to face related stresses.
If you’re considering a new job or move consider writing out the strategy. Similar to writing a business plan, itemize the associated costs and future potential income as a result of the change and consider a period of no or reduced income as change can often bring a period of financial uncertainty.
If you’re keen on weighing a big life decision right now, ask yourself if your perspective is objective, considering the gravity of everything and related stress. Understanding your financial situation may help be the catalyst for making the right decision. If leaving work adds to your financial stress, then you may have your answer, or, if you’re finding yourself drawn to new opportunities, considering weighing the pros and cons.
At Eureka Wealth Management, I help my clients weigh big decisions, and educate them on the financial impact. I also do retirement planning, investments, and insurance. Call for a free, initial consultation at (760) 537-0791 or online at eurekawealthmanagement.com.
^1 4/25/2020: FT: “Coronavirus: the hidden health costs of the UK lockdown”
5/30/2020: FT “Grief, lockdown and coronavirus: a looming mental health crisis”