The COVID-19 situation and the uncertainty it brings as the economy braces itself for a possible recession is the time you need to put your finances in order, and prepare against any unlikely curveballs life may throw at you.
How do you manage your money at a time like this?
Let’s see some options.
Create a family budget
Now is the time to decipher your family’s needs (like rent, food supplies, medical supplies, electricity and water bill amongst others), and wants (new toy for kids, replace the plate rack, re-paint the kitchen, new shoes/dresses among others).
Run a search-and-eliminate mission on every cost you can’t justify in current conditions. Then prioritize spending on the needs over the wants.
Re-access cable TV and internet packages
If you’ve opted for a premium bouquet because of the sports channels, then you may want to cut back on the subscription since all forms of sporting tournaments are currently on hold. If you’re opting for unlimited plans on your internet subscription, re-access it to be sure it’s a wise use of your money.
Check debt repayment alternatives
If you’ve taken a loan from the bank or an individual and have been servicing that loan, with the uncertainty that looms, you should consider asking for an extension on repayment.
Channel extra funds to emergency account
Now that you’re at home, consider putting the money that you would have otherwise spent on transportation fares, entertainment, restaurants and more into your emergency account in case of a ‘rainy day’.
Prepare for the aftermath
Tough times don’t last hence it’s necessary to prepare for how to recover financially after the pandemic. Explore wealth creation and management opportunities with experience asset managers such as SAMTL
Remember ‘Tough times don’t last but tough people do.”. Stay safe.