The impact of Covid-19 has affected or is affecting the financial strength of most companies globally, which has resulted companies to either lay off or do a salary cut for its employee.
Although throughout the Covid-19 pandemic, your health is top most priority, but however, maintaining your financial health during this situation can be critically important.
And with the uncertainty from companies if they can continue to stay afloat, staying at home presents a great opportunity to think of how to better manage your finances as the Covid-19 situation develops around the world.
Here are a few tips to guide you
Re-adjust your budget Re-adjusting your budget is very necessary in managing your finances in these tough times. You can do this by building a new budget and by making sure that you list your essential and non-essential needs in separate columns. This will make it easier to find the adjust areas that you can cut back on more easily.
Reduce your spending
One good thing of maintaining social distance by staying at home for weeks is that it helps to reduce non-essential spending from your budget. And often times, it is the easiest way to make budget cuts. discretionary
You can do an easy across the board cut on all these categories like clothing, accessories, entertainment etc. These types of cuts may make it easy to find the money that you need without drastically cutting back in any area.
Boost your savings account weeks will make it easier to resist the temptation of spending money on impulse buying. And this makes you save more on transport fees, eating out and travelling.
Don’t change your retirement or saving plan
Making cuts in your expenses can make you also want to cut on your savings or retirement contributions to make ends meet. However, this decision will hurt you in the long run. You can still continue to contribute into your income into your retirement accounts.
Communicate with your creditors if you cannot pay
With the total shutdown of commercial activities, you may not be able to pay you bills including your home loan and credit card repayments. If you are worried about that you cannot pay your credit card repayment bills, try and communicate with your provider to see how you can adjust your repayment plan instead of simply not paying
Think about your long-term Goals
This is the right time to think about your long-term goals especially if there is a pay cut. Be sure that you can still meet your other financial goals. This can include things like homeownership, retirement, college savings, or vacation planning. If you know this is temporary, for example staying home until your children are in school, make plans on how you will improve your income when it is time to re-enter the workforce. You may need to keep up with certifications or other training so that you can easily find a job.
Source: Businessdayng
