Financial Survival Tips Now That Corona Destroyed Your Savings
The coronavirus pandemic has changed the way most of us think about our health, work, parenting and leisure. The long-term effects of the pandemic are yet to be understood fully but the current statistics are not good looking. Many businesses have been closed and many more are slowing down due to the changed behavioral pattern of a majority of the consumers. The uncertainty that comes with a fragile job or a decreased income after a pay cut or because you lost a side hustle is real for many and this has pushed the demand of products much lower.
On an individual level, how well you come out of this pandemic, in terms of finances, hinges on your planning. In good times, before a crisis strikes, you should aim to have at least three months’ worth of expenses saved in liquid accounts as your emergency fund. Although, this may come across as being too preachy for some people, having in mind that the pandemic has depleted the cash reserves for many it is still imperative to have a plan of how to move forward. The combination of a focused planning and aggressive pursuit of financial security will result in only a purposeful strategy to get anyone out of this slump.
The following financial survival tips will help you if Corona destroyed your savings. They include:
- Build a lean budget – Although the festivities are here with us, should still aim to eliminate any non-essential spending. Ensure that you’re only spending on essentials like food, shelter and transportation. These are usually the biggest source of anyone’s frustrations. Once you know how much you need for them, it can help you to stop panicking because you know exactly how much you need to cut back on and for how long your savings will last. Keeping a track record on how much you’re spending to enable you make better choices with each purchase.
- Leverage on online jobs – The pandemic has brought with it the opportunities of respectable remote work for some of the most sought-after online skills. Jobs with skillsets in writing, editing, video and photo editing, graphic design and proof-reading have a huge demand lately. These jobs will give you a good supply of work and pay at this time. Do not exhaust your survival funds just yet, since the duration of the pandemic is uncertain. This is definitely not the time to focus on paying off debts, but instead focus on the essentials of life.
- Hit the gym or simply go out to exercise. This principle of continuous work on your health will work best for your mental space as well as your maintenance around your house. Financial success is reinforced on a secure health. Eat healthy food, have a regular home workout routine, and take care of your mental health. Remember that you are likely to have better outcomes if you’re healthy.
- Plan for the worst – In this case, the worst can be, what will you do if you get Covid-19 positive? By planning for the worst, your mindset and actions will secure your every activity going forward. You have to include this possibility in your financial plans, to ensure that the period is as financially smooth as possible. Most hospitals are currently busy, isolated or not in a capacity to handle the numbers of the sick patients. Because Covid-19 isn’t covered by medical insurance, if possible, it is also a good idea to set aside some funds for hospital bills and related expenses.