The COVID-19 pandemic has turned the world upside down. With public health at stake, millions of people are facing pay cuts, job losses and hence are struggling to meet the ends.
As the coronavirus outbreak continues to cause havoc in our lives, it’s very important to take decisive actions to counter financial challenges and safeguard financial health.
Here are 5 ways to manage your hard-earned money and keep yourself financially fit amidst this pandemic:
1. Prioritize your expenses
Amidst COVID-19 crisis, be cautious with your expenses and budget.
Start prioritizing every expense associated by putting your needs above wants. All the luxuries of shopping online now and then can be postponed.
Some of the expenses to be put on priority are:
- Medical and dietary needs
- Home or office Rent (bills, insurance, utilities)
- Groceries (not dining out)
- Utility bills
- Pet care
Cut out unnecessary spending to ensure financial stability.
2. Look for multiple income sources
There are plenty of online job opportunities that can help you to earn extra income.
For instance, if you have a 9 to 5 job, look for online opportunities such as online tutoring or blog writing or any other freelance work that you can easily manage after your working hours or on weekends.
This all requires dedication, time, and a stable internet connection.
3. Build an emergency fund
Emergencies come uninvited and if you are not prepared, they can financially trouble you.
To deal with such unexpected incidents in your life, save a decent proportion of your income every month to create an emergency fund. Do not be reckless in spending the saved money and only reserve it for special cases only.
For instance, a life-saving surgery, college admission or house rent, etc.
Pro tip: Keep 2 to 3 months worth of living expenses in an emergency fund.
4. Have medical insurance
Medical emergencies don’t knock on the door and can happen at any time. And, if you are unaware, it can drain your savings.
Make sure you have medical or health insurance cover for you and your family to get peace of mind during any health crisis.
Check your medical insurance perks and if needed, increase the premium amount by taking more coverage for crises like Covid-19.
5. Avoid taking debt
During the COVID-19 challenges, many people are borrowing high-interest debts or loans to combat financial challenges.
While the debt or loan can help you cover your expenses, in case you delay in making debt repayments, lenders can charge you with a high-interest rate.
This can have a bad impact on your finances and credit rating as well.
It’s better to follow a cautious budgeting routine to cut down on unnecessary expenses. Alternatively, you can ask for debt relief solutions like a loan with the help of professional companies.
In the end…
We all need money to survive and thrive in life.
Therefore, during unprecedented situations like the Covid-19 pandemic, it’s important to plan a budget, prioritizing spending, and use resources smartly to deal with financial contingencies.
Above all, follow the above-mentioned tips to fix bad credit and become financially stable during the pandemic.