MANAGING YOUR FINANCES DURING CORONAVIRUS OUTBREAK
We all are Worried about finances due to the coronavirus outbreak? Well, the coronavirus pandemic is disrupting our daily lives at every major level psychologically, physically, mentally, and of course financially. People across the world split financially.
Financial stress dominates for many of us; people are bound to stay at home to stay safe. Potentially facing unemployment but whichever camp you fall into there is a way to come out because that calls life; we fall and rise every time. This time when finance is a concern you can consider the following tips that can help you deal with finances during a coronavirus outbreak.
Enhance Your Saving Fund Capacity
Since it has been observed that the coronavirus pandemic has already impacted and affected the global economy, one needs to be more focused on enhancing its emergency funds. In such a scenario, when everything is getting shut and people are not going to work, it makes sense to increase your emergency fund. Ideally, emergency funds should be worthy of at least 6 months of your expenses.
Use Online Mode To Make Payments
If you are making an offline payment for services like home loan, personal loan, car loan, then change it quickly to online payment mode. You must do so because you may not able to pay your EMIs if banks shut down their services due to a coronavirus outbreak which can result in late fee charges or loan default. Choose the option of auto-debit from your account to avoid any delays and defaults.
Don’t Break Your Long Term Investments In A Puff
As markets are already experiencing unstable situations due to coronavirus attacks, it is still advisable that instead of panicking you should take precautions. It is not right to discontinue all your long-term investments in a huff and must give time to the markets to bounce-back. Always remember that the longer you stay invested, the better are chances to get better results.
Evaluate Your Health Policy
The treatment costs for coronavirus including hospitalization were covered under most health insurance policies until it has been recently declared by the World Health Organization. Ever since the pandemic declaration, policies that rule out pandemic reporting may not reconcile claims arising from such cases.
Keep Examination Your Financial Plan And Daily Expenses
The time has come when you need to limit your non-essential expenses under such a crisis situation. It is necessary to have adequate savings come in handy if the situation worsens in near future. After boosting your emergency fund, you need to keep checking your budget and daily expenses and try to keep it minimal as much as you can.
Assessment Of Your Investments And Stock Up Smarter
It is also the time when you need to take stock of your investments and take practical and sensible decisions. Make a list of your total investments and see how much you can withdraw from your investments to handle your finances during the crisis. During the times of lockdown to stay safe from the spread of coronavirus one may feel like stocking up the supplies at the moment. The stocking up of necessary groceries and important medicines comes first in everyone’s mind. Just remember to stock up to a limited unit which you will use and should not waste.
Trim Spending, Track Your Expenses And Keep Budgeting,
As constant changes in the economy due to coronavirus outbreak, keeping a budget and tracking your expenses can help you maintain better control of your finances and give yourself a little relief in this stressful time. Trim your monthly consumption of groceries, internet usage, electricity, cable charges, phone packs, and more.
Order Less And Cook More
Ordering food provides great comfort and convenience but not a wise idea from a controlling finances point of view in difficult times of coronavirus outbreak. Therefore, you should look for mouth-watering recipe ideas that can help you cook your own meal in the best way. Cooking your own can be the most important and useful budget-friendly idea.
Shift Money As Necessary
In difficult times like this, you might find yourself in need of extra cash due to some unexpected expenses, so use funds from your emergency fund account. Cut down your regular expenses while you are working from home to avoid the spread of coronavirus further, put that saved money into your emergency fund.