Holy Week is always a good time for spiritual reflection. I confess though that I usually spend my Holy Week vacationing in the beach or in other countries to escape the heat of summer in Manila. But if there’s one thing good about the coronavirus disease (COVID-19) pandemic and the ongoing enhanced community quarantine (ECQ), is that it has forced me to redirect my attention to things that matter most, like my relationship with God, family and the people around me.
Here are some of my reflections on the COVID-19 pandemic, God and personal finance.
The importance of stewardship. In the Bible, God emphasizes the importance of stewardship, which means acting responsibly with the blessing He has given us. Jesus had many parables on stewardship, including the “Parable of the Talents” where servants who acted responsibly with the talents given to them were commended and rewarded with more.
As far as our finances are concerned, stewardship means that we should stay prudent and prioritize saving during the good times to prepare us for the bad times like this. It also means that we should not borrow money to buy frivolous things we don’t really need and can’t afford. People who are heavily indebted risk having to downgrade their lifestyles during difficult times because they can no longer afford to pay their debts. This experience is very painful for people already accustomed to a lavish lifestyle. Moreover, they will be judged by others for trying to be something that they are not.
For those of us who are blessed with more, stewardship means sharing our resources with those in need. For the ongoing crisis, this means giving donations for the purchase of medical equipment and food for our front-liners, or donating relief goods for those who have lost their income or livelihood. By doing so, we are acting as God’s servants, blessing others with the abundance He has given us. Through the act of giving, we are also blessing ourselves because we get fulfilled by helping others.
Don’t be overconfident. The risk of a pandemic has always been there, similar to the risk of fire, flood, earthquake and other “acts of God.” However, when COVID-19 was first reported in China last December, people didn’t take it seriously because nobody expected it to turn into a pandemic. Epidemics in the past such as SARS and MERS-CoV have always been successfully contained and put under control before they spread globally. In fact, nobody I know has lived through a pandemic, let alone survive a pandemic-driven economic slowdown and bear market.
Despite being an analyst for more than 20 years, this is the first time I’ve seen defensive consumer companies like SM Prime and Jollibee suffer from significant revenue losses as they were forced to close most of their stores. Even after the ECQ in Luzon is lifted, there is a possibility that most SM malls will remain closed and that people will avoid going to restaurants like Jollibee.
During good times, it is easy for us to become overconfident and proud. And because we are rewarded significantly for taking risks, there is a temptation to become very aggressive and to forget risk management.
However, we have to remind ourselves that “Many are the plans in a person’s heart, but it is the Lord’s purpose that prevails.” (Proverbs 19:21)
Times like this remind us that God is sovereign and that He can allow anything to happen, even widespread disease, such as the COVID-19 to humble us. As such, we must avoid being proud and consistently manage our risk. For traders, this means limiting the use of margin loans only for short-term trades and for limited amounts. For businesses, this means controlling our expansion so that debts will be minimized. Although being less aggressive means earning less or taking longer to reach our goals, at least we avoid the risk of being totally wiped out.
Have faith in God. The ongoing pandemic is not a problem that can be solved by throwing a lot of money at it. Developed nations, such as the United States and United Kingdom, are suffering as badly and sometimes even worse than developing nations like the Philippines. Everyone is having a hard time containing the spread of the disease, including the most careful countries, such as Singapore. Both rich and poor, young and old are also vulnerable to contracting the disease and possibly dying. Medical facilities everywhere are overwhelmed because it takes time to expand the number of medical workers and to develop a vaccine.
In times like this, when everything seems hopeless and we can’t do anything to solve the problem, we can stay hopeful if we have faith in God. Pray to God and have faith that He is merciful and that He will heal us from this pandemic. In times like this, I am reminded of the verse Psalm 46:10 “Be still and know that I am God.” God wants us to turn to Him and ask Him for help. Let’s continue to pray to God and trust that He will allow us to overcome these difficult times. INQ