In the midst of the global coronavirus (COVID-19) pandemic, we face lots of uncertainties. Uncertainty about health brings uncertainty about personal finances. With this, you need to learn how you can manage your budget properly. Managing your budget is very important to help you stay both healthy and wealthy.
In this article, you will learn about managing finances effectively in the next couple of weeks amidst lockdowns and new work arrangements. These tips can help you survive in facing the global health and financial crisis today. Everything should be planned very carefully, especially if you want to survive the worst-case scenarios.
[1] Create a Budget Plan Carefully. This is the most important thing that you need to do. You must decide wisely where you are going to spend your money. If you don’t need it, you should never buy it. You should always be smart where your money goes. Creating a budget plan carefully is very useful for you who have limited income during this coronavirus outbreak. Don’t forget to create a list of all the regular expenses that you are going to spend on for the month or months to come. By creating this budget plan, you will be able to easily control your expenses.
[2] Start Shopping Online. Many banks are trying to encourage their customers to start using their online banking systems. Retailers also recommend their clients to buy items from their e-commerce websites. These online systems are a good idea that can be taken for minimizing the person-to-person interaction so to help curb the spread of the virus. It is very comfortable for you to buy any of your necessities on the internet. You just need to know that you still have to pay for the delivery service, tax, and other fees with your online shopping. You may also experience some delays when you buy something online.
[3] Build Up Your Savings. We never know how long this coronavirus pandemic will last. Therefore, you need to start building up your savings as much as you can. It is a good idea for you to have an emergency fund that can cover several months of expenses for you and your family. When it is necessary, you can also connect with some lenders out there who can offer you personal loans. These personal loans are very useful to help you cover some short-term costs that can no longer be covered by your savings. Building up your savings can be a perfect way to survive should this condition extend for more months.
[4] Use Your Credit Wisely. In this outbreak situation, you need to find some credit cards or other credit options with low-interest rates. There are some low or no interest credit options that are available for you in the market. These options can help you with the last-minute purchases. You can also use your reward cards for shopping for your needed items from the retailers. These credit options can bring you a lot of benefits. Likewise, it is a good idea for you to compare some available credit options, so you can choose the best one for yourself.
[5] Don’t Panic. This is an extremely important tip that you need to do so you can avoid any further problems. It is a good idea for you to avoid being one of the panicking shoppers that you can find around yourself. Rushing to the grocery store or selling your shares on the stock market impulsively can lead to a lot of complications in the future. Instead of getting into a panic mode, you should focus on creating a good action plan. You need to stay calm. A clear mind allows you to find out the best solution for any of your problems.
[6] Eliminate Some Debts. During this situation, you may want to consider eliminating some debts. It is a good idea for you to move your debt from the high-interest loan to low or no interest debt. You can use a balance transfer process in your credit card or other personal loans. When it is necessary, you can consolidate several loans or debts into one single debt account. Combining all debts can help you solve your loan problems easily. When you can simplify your debt, you will be able to find the right payoff solutions.
[7] Grab Some Cash from Your Bank. Although most banks still open at this time, you may want to consider taking some money from your bank. You need to have some cash on hand. We will never know when the bank branches will suspend operations for an indefinite period of time. Cash on hand is very useful to help you stay navigating through the days. You should keep some of your cash at home so you can prepare yourself to face the worst economic and health downturns.
[8] Build Your Emergency Fund. An emergency fund is very essential in this kind of emergency situation. If you have some difficulties in building an emergency fund, you should find a high-interest savings account. This type of savings account can help you grow your money very quickly. Online savings accounts usually have a higher rate than traditional banks. You can also open your savings account easily when you are using the available online platforms. Make sure that you select the best savings account from a reputable bank so you can avoid getting problems in the future.
[9] Look for Any Government Benefits and Assistance Programs. You need to watch the news to learn about the government benefits and assistance programs. The government is trying to do the best effort to help all citizens from any states and countries. Some states also suspend the eviction and also waive late payment fees during this pandemic situation. You can look at all of the latest news so you can weather the crisis. The government also announces new updates regarding this coronavirus pandemic via some online news channels.
Bree Diaz is a writer and an aspiring financial advisor. She writes varying topics about finance like debt and finance management, personal finance, credit repair, etc. She browses sites like SiFinances.com, Investopedia, Forbes, and The Balance for her references.
