As a financial adviser, I have obtained a variety of industry licenses and designations. However, before becoming an adviser, I earned a master’s degree in history from Eastern Washington University. I have found the study of history can be a valuable pursuit for anyone in any field. In fact, I often draw on examples from U.S. history in order to give me perspective on the current state of the economy.

One period of time that I find particularly fascinating is the Great Depression.

While the COVID-19 pandemic has rocked the world with millions of people out of work and struggling to pay their bills, it is important to remember that this is not the first time the economy has crashed. On Oct. 29, 1929, known as Black Tuesday, a record 16.4 million shares of stock were sold in one day, compared with a range of 4 million to 8 million shares a day sold earlier in the year. The great crash had begun. The crash contributed to the Great Depression, which destroyed millions of Americans financially.

The people who survived the Great Depression learned many valuable lessons about money as a result of this terrible time. Perhaps it is possible to draw on their experiences and apply some practical ideas and tips today. Unfortunately, for many people, this COVID-19 pandemic, like the Great Depression, also has destroyed millions of Americans financially.

Having studied the Great Depression, while being old enough to have spoken to both of my grandmothers about it, here are a few lessons from that awful time that may be helpful for anybody today who is experiencing the same economic impact as a result of this brutal virus.

First, you should build an emergency fund. Most financial advisers suggest having an emergency fund of three to six months of living expenses, if not more. If you are worried about losing income as a result of this COVID-19 pandemic and are presently working, it’s crucial that you build up an emergency fund. With a properly funded emergency fund, you can avoid dipping into retirement savings as well as taking on debt. Having a comfortable amount of cash on hand can give you peace of mind while you are either looking for work or waiting for the economy to recover.

Next, avoid and pay off debt. Speaking of peace of mind, those people with little to no debt find themselves in a much better position to weather an economic storm. Yes, we live in a consumer debt society, but it doesn’t need to be this way.

Here is a lesson from the Great Depression that many people don’t know: One of the reasons that people were hit so hard by the Depression was because of consumer debt. Coming out of World War I, the U.S. economy was roaring, and debt, for the first time, was easy to obtain. Ordinary people began to accumulate debt to buy items such as refrigerators and radios. Common people also started to borrow money to buy stock – buying on margin. So, when the Depression hit, many people were crushed with their debt payments. Those with little to no debt were able to ride out the storm. Coming out of the Great Depression, many people, for many years, were intentional about avoiding debt.

Another practical lesson we can learn from the Great Depression that may be applied to the current economic crisis is the importance of having a budget. When you lose your job or have reduced income, it is important to have an accurate handle on your spending. I distinctly remember my grandmother showing me a notebook that she used to budget her expenses during the Depression. She actually found herself divorced as a single mother of two during this time, and she emphasized to me—at 7 years old—how tough things were and how important it was for her to track her expenses. She found it so crucial to track all of her expenses during that time that she never discarded her budget notebook as a cautious reminder.

During times of economic uncertainty, not to mention forced quarantine, it can be helpful to consider low-cost entertainment options. While we are all aware of the game Monopoly, many people don’t realize that it was during the Great Depression that the game of Monopoly gained popularity. Today, we have a vast array of technological distractions, however, during the Depression families came together for hours to play this game. This is a subtle lesson to us all to be creative in our entertainment pursuits while remembering the value of being together with your family.

John F. Kennedy was elected president in part because of the wealth of his father, Joseph Kennedy. It is interesting to point out, though, that Joseph Kennedy’s wealth, in part, came as a result of the stock market crash in 1929. Several months after the crash, Kennedy was able to put money back into the market while it was hovering at all-time lows. By doing this, he increased his wealth by 10 times. This lesson from the Great Depression points out the importance of investing, as one is able, even when the markets are low. Assuming you have time and patience, it is likely that money invested in the market will appreciate. So, don’t stop contributing to your 401(k) or your IRA – even if the market is down.

There are many other lessons that can be learned from those who suffered through the Great Depression. For example, people who survived that time looked for any type of side gig just to keep going. They also learned new skills, and many who lost their jobs pursued entrepreneurship. Many also were intentional about learning to become more self-sufficient by fixing things themselves.

However, in my opinion, the greatest lesson to be learned from those who survived the Great Depression was resilience. This generation had the mental toughness to deal with financial calamity and then go on to defeat fascism. So, to those who have suffered severe financial blows as a result of the COVID-19 pandemic, please remember that we have been there before, and we have always prevailed.

Rick Biel is a financial adviser with Biel Investment Management, in Spokane. He can be reached at 509.995.5734 or 

Bielinvest@aisgadvisor.com.