How to Manage your Finances during the Covid-19 Crisis

Manage Finance During Covid-19

In these times, the only thing a person seems to think of is the new virus that has kept everyone at home by way of self-quarantine or a national lockdown. Started in December of 2019, the novel Coronavirus has spread all over the world rapidly in a matter of a couple of months, and there seems to be no stop to the number of cases that are increasing by the day. The fact that a proper and effective vaccine hasn’t yet been discovered just makes matters worse, and there seems to be no near end to this.

However, that is on the front, but what about the people who are sitting at home, doing nothing in terms of any work, except a few who have the amenities to work from home? There are so many people who rely on daily contracts or employment to earn money. They have all been left stranded and don’t know what to do to earn money.

Despite there being many NGOs and other social workers that are on the go to collect as much money as they can and help these people, it is not enough. Where do we get help from? We, sitting at home, could only try and come forward to donate from among our own finances, which might also need some managing.

• Stock up but do not hoard

During the lockdown period, it is essentially necessary to stock up on essential items and items of necessity. While it may be wise to stock up, hoarding is not as many people also want to secure essential items in order to get through the crisis the lockdown has imposed on people.

No need to worry as you only need to stock up supplies for a month Because the government has assured that there will be a flow of goods maintained in the lockdown period. And there will not be an issue of availability.

• Make changes to your budget.

The first and foremost thing to do while managing finances is by budgeting. Limiting your expenses and not spending money uselessly in these times is what’s best. Deciding where to spend money and how much to spend is key. Grocery and sanitation items are the essentials that should just be purchased. It’s the idea of satisfying only your needs and not your wants.

Every household has a pre-planned budget set by the household on how much income the household receives, with the lockdown initiated drastic times comes with drastic measures, as unstable expenditure may lead to financial problems. You can learn more on budgeting for dummies online which the right ways to manage it.

Re-evaluate your budget on which items take priority most. Set aside luxurious expenses after the crisis ends and spend more on essential products needed for survival. It is always recommended to have savings or emergency funds in times like these. These funds can prepare the people in tough times and prepare them for any future hardships.

• Avoid making rash decisions about selling.

Shares, and stock markets are the next panic selling markets. Everyone’s trying to get rid of their shares whose prices are reducing by the day. That is bound to happen in this kind of scenario. So, you should wait it out and not sell in fear of bearing losses, for at some time in the future, the market is going to get better, and all those reduced prices are going to rise.

This selling of shares in the market is only going to yield your losses and nothing else. However, there are options for the others who have enough pool of funds to invest in the market right now, because even though the prices are less, and not many returns are guaranteed, there will be a time when the shares’ prices will increase. Then the profits are going to be seen. There might be an overwhelming return for you.

Hence, we should hold out on selling stocks and wait for the crisis to end. Making smart decisions while in this crisis can prepare you to avoid liability regarding finance, and it is always advisable to take advice regarding financial investment

• Pay EMI and other interests.

With most businesses and services are closed. You may think that you don’t have to make payment or EMI now that the lockdown is in effect. But it is not as credit card or EMI often charges a higher rate of interest when the payment is delayed, and it can impact your credit score. So, it’s better to pay a minimum payment in order to minimize the liability and give you some breathing room.

The bills should be paid and not kept due. The credit card bills should definitely be cleared to avoid those extra charges. Other essential payments for gas, electricity, rent, and mobile and other bills should be paid too. People having kids might also have to pay their school and tuition fees, which might be an unmissable one.

Apart from this, one thing to keep in mind is to pay via debit cards instead of credit cards so that there are not many pending bills to be paid at the end of the month. If this feature is not available right now, once the lockdown is lifted, you should try to shift to debit cards so that it saves you in the near future.

Summing Up

Apart from these ways to manage your funds, you could curtail all those future trips that you had planned, if possible, so that that money can be saved for the rainy days.

Lastly, if you are among those fortunate ones, you could care to donate some of that extra cash you’ve got to help those who are desperately in need of it. The people living on the streets, daily job people, and stray animals could use the money and our help.

While all of us are in this together, we are sure to see the light of the day and survive this virus. There are going to be a lot of changes that take place, things will not be the same once the entire situation is under control, right away, but it will come back at its own pace.

The economy that is severely hit will run on track again after it has coped, and all the businesses will normally run, again. Life will slowly take its course too, and till then, all we can do is stay safe at home, spend time with our closed ones, learn a new skill, discover a new habit, and lastly, get a good hand and manage those finances well because that counts too.