The corona virus pandemic is an exceptional case, but any hard times will challenge our personal finances. Planning is better than panic, and it is better to start so that you are prepared to handle tough times at any point in the future. Here are some ways to manage your finances during tough times.
Look at your expenditure
A budget makes you aware of where your money goes so that you can adjust when needed. Online tools can help track your expenditures. Using a worksheet or software on a schedule will help you remember costs that don’t appear every month, including car repairs.
When you know where the money is headed, you will spot expenses that need to be cut. Seeking opportunities to save money will even help you create an emergency fund or top it up.
Supplement Your Income
If your main job’s salary is likely to diminish, what you need might be ways to supplement your income. You will get your plan ready to go by looking ahead.
Stuff you can do include selling used clothing, dealing in old gadgets, taking surveys, tutoring online and selling hand-crafted pieces. You may not make huge money, but it’s going to be something. If you are selling the products you make, now could be a good time to can inventory.
Preserve your credit score
You may find yourself putting more on your credit cards, particularly if you don’t have an emergency fund or if you’ve run out of funds in your current account.
If you find yourself using your credit card more often, ensure you pay on time. The most significant factor in your credit report is on-time payments. If you’re impacted by a coronavirus, try contacting your credit card issuer or provider. You may have some leeway with payments due to the current situation.
Prioritise
Certain aid services are now available and will postpone payments or cut what you have to pay. Be cautious regarding payment of bills if you cannot pay them entirely. If you have a long list of payments to clear, first look for ways to survive. You will need to pay costs related to childcare, mobile phone, travel, work and housing, electricity and food. Anything else could go unpayable for the time being. Skipping any of the bills can hurt your reputation, but after the recession is over, you will recover.
Have a plan in case you lose your job
A lingering economic decline may lead to a loss of job in the long run. If your area of employment is likely to be affected, keeping your CV updated and taking advantage of networking opportunities is smart.
Losing your work will momentarily make it impossible to think about what you will do next. Having a routine and game plan of sorts to tackle potential job loss will keep you going.
It is important that you are always forward planning when it comes to your finances. Many financial institutions are also being more lenient with their policies during these tough times, so if you need help to ensure you are seeking it.
To read more on topics like this, check out the Finance category.
Leave a Reply