Now that we have probably emerged from the Corona crisis, a cautious assessment is being made here and there. We will talk about the economy later, but more concretely, we have learned something that we actually knew: you cannot spend money that is tied up. Anticipating this truth-as-a-cow has taken on a special meaning for some of our clients; it has helped them through the recent period.
We sometimes talk about repaying, investing, financing and so on. We can calculate what that means and we can tell and consider the possible consequences. But if you have had no income for a while in recent months and could not pay your fixed costs, then it becomes very concrete.
It is even more unpleasant if you live in a house with excess value or if you have paid off the mortgage (because the mortgage interest was higher than the savings).
We cannot repeat it often enough: keeping money available is the mainstay of any financial plan and it has saved many people in the past Corona months; it may seem like an academic story - until you experience the consequences yourself.
