There is no doubt that the recent pandemic has affected all people around the world both mentally as well as financially. People now need sufficient funds to be able to cope with the Coronavirus. Unfortunately, most of them are not prepared for such a financial crash. There are many dilemmas inside peoples mind, such as what effect will this have on their retirement, or if they will be able to travel abroad since they have planned their vacations and have already paid upfront.
What we need to follow during this time of the pandemic are the following:
1. BE PATIENT – This is not the time of fear or any other emotion that will drive you to wrong decisions and especially in the area of your personal finances.
2. STAY ALERT – Keep an eye on your current job situation as nobody is sure how this pandemic will affect their job. Liaise with your employer whether is feasible that you can work from home in case of school closure which implies child care.
3. FAMILY MATTERS – Make sure that all the family necessities and housing expenses (food, water, gas and electricity) are paid. Continue to keep as normal of a routine as you can especially for children. We do not want to create any added fear within them. Talk to your kids as to inform them, not scare them.
4. HOLD ANY CREDIT COMMITMENT – You need to pause on your debt pay-off plan and make only the minimums to your debt.
5. STOP UNNECESSARY SPENDING – This is not the time to go out and waste any money on unnecessary items. It would also be a good time to shop around for insurance and make sure you are getting the best rate you can get. Also, stop using your credit cards and use your debit card to keep your spending in check. Thinking of ways to cut back should be a priority.
6. INCREASE YOUR CASH POSITION – This is the best time to save as much cash as possible for a case of emergency. Search for anything that is possible to be sold online in order to realise some cash. Another idea would be to have your workplace deduct a certain amount from your monthly wage to go directly to your savings. Once the pandemic is passed you can then use the cash available to pay your debts or to resume your future financial plans.
Written by: Marinos Fasouliotis