You are not alone, it obviously sounds cheesy but our relationship with money is often emotional and complicated. Whatever you are going through and the things you are feeling are not unique, so many others are going through the same right now, too. Below are ways on how we can go through this pandemic without breaking down and possibly committing suicide due to financial crisis and other challenges coming as a result of this Pandemic.
- Know your numbers
The impact of Corona virus could change a lot on our economy. COVID 19 is both a global health crisis and a global economic crisis. The price of goods and services have changed based on the availability of resources. Do a thorough check of all your accounts, know how much you have in your savings accounts and any other liquid cash that is available. It is also vital that you know how much you earn and what your expenses are to enable you plan accordingly.
If you have not established a regular budgeting routine, now is the best time to do just that. Figure out how much income you have coming in, what your expenses are and the differences in those two numbers. Find out if the difference is positive or negative, then work with those numbers to create a gap that can help reduce stress over your finances.
3. Reduce on your spending
If you are practicing social distancing, you are likely not to spend a lot of money on social activities already. You are simply not sure of what lies ahead, therefore you need to cut out unnecessary spending despite the fact that the economy needs our spending. But you also need it; its time to spend smart right now. After getting through this crazy time, you can support your favourite businesses through more regular spending patterns.
4. Pause debt pay off
If you are currently working on a debt pay off plan, pause that for now. Live your best life because right now you might need that extra Cash. Continue to pay the minimum payments. You may have to put any extra payments into a savings account instead. You may either need it due to your Corona virus impacts or be able to put it towards debt at a later time.
5. Evaluate your emergency fund
In case of an emergency fund, this is the time to take a deep breath and be thankful. This is so because as your expenses change over the coming weeks and months, you may need to use that emergency fund. After all a global pandemic, COVID19 has been seen as an emergency.
6. Hustle to avoid the comfort zone
Try to find some kind of side work to supplement your income. For example, pickup hours at a local business, you can offer services online, or even start your own little business. You can also build a garden bed for your neighbour. Try to find something, do not be overly picky with what the work is. The goal is entirely to bring in extra cash to support you in this crisis.
As the Global Economy suffers the effects of COVID-19, it is important to control what you can. Understand your finances and create a plan, keep your spending in check and save as much money as you can.
I wish you the very best during this time of uncertainty. May your health and finances sustain you and keep you stronger.
By: Luke Nimusiima