It’s no secret that due to the coronavirus pandemic, it’s been a difficult time for many people worldwide. Some folks have been hit particularly hard financially, causing lots of stress on many households. While easier said than done, it’s important not to panic. When it comes to making crucial financial decisions, you need to have a clear mind to think things through thoroughly and not hastily. With that being said, here are some things you should and shouldn’t do when it comes to managing your personal finances during this ongoing crisis.
Revisit your budget
Covid-19 took the whole world by surprise. Since it’s something many of us didn’t account for, it’s the perfect time to revisit those money goals you set out for yourself at the start of the year. Take a look at what needs adjusting and come up with a game plan to make it happen. You’ll feel much better and more in control of your financial situation once you’ve modified where needed!
Review the services you’re paying for
Similarly, if money is tight at the moment due to the coronavirus crisis, this might be a good time to prioritise the services and subscriptions you’re still paying for. Rank all the extras you pay for monthly such as premium TV packages, magazines, paid apps, etc. from the most important to least. Then start cutting out from the bottom at least until after the outbreak.
Rely on your savings (and increase them if you can)
If you have an emergency fund, now is the time to use it if you must. And more importantly, it’s time to increase your savings for the long-term as well. If you’re still working and able, continue to put money away — no one knows what the long-lasting effects of this outbreak will be, so it’s best to be prepared. Your savings goal should be between three to six months’ worth of household expenses (but if you can aim for more, the better).
Use credit cards wisely
If you don’t have enough money tucked away for this period and need to rely on credit cards, do so at a minimum and only for purchasing essential items. If you must, you may also consider applying for a higher limit. Make sure you’re paying back at least the minimum amount each month. It might also be worth it to get in touch with your credit card company during this period. Some might be able to waive fees or interest rates under the current circumstances.
Research government assistance programs
Many governments around the world are offering relief programs during the pandemic that you could be eligible for. If you need a break on student loans, mortgage, car, rent or utility payments, visit your official government websites to see what sort of grants they're providing. But as you research, be vigilant about the websites you’re visiting. There have been many fake sites created to scam vulnerable people during these desperate times.
Manage money from your mobile
During this pandemic, it’s essential we listen to our governments and health officials and practice social distancing by staying home. The good thing about Monese is that you can still handle all your finances from the safety and comfort of your home during this health crisis. With your app, you can quickly and easily send, request and receive both local and international transfers from friends and loved ones. And when moving between Monese accounts, it’s totally free and instant, no matter the currency.
Help those in need
If you’re one of the lucky people who hasn’t been greatly affected financially by the pandemic, you’re in a great position to help others where you can. Now more than ever, it’s essential to support members of our community and small local businesses. Independent workers and employees in industries that rely heavily on tips are also likely to take the biggest hits. Therefore, donate, tip generously and buy gift cards and vouchers from local businesses to use at a later date. How are you managing your money during Covid-19? We’d appreciate hearing your advice. Share with us on Facebook, Twitter, Instagram or get in touch at email@example.com.