Six Ways to Wisely Handle Your Finances During a Pandemic
Probably more than health issues, people get anxious about finances during a pandemic. The coronavirus pandemic has an overwhelming impact on the global economy. A lot of people have become financially unstable due to unemployment, closed jobs, and fewer freelance gigs. The sad truth is that not everyone has the privilege to work from home and sustain their monthly income. Budgeting of finances has become more challenging and complex than usual.
With those little savings left on hand, how can you wisely use it during the pandemic? Here are six ways to help you handle it better.
Review Your Subscriptions
You might have multiple subscriptions that you do not use. This is the perfect time to review all that and cancel the ones you do not need. It may be a subscription to magazines, or an OTT platform subscription.
For instance, a lot of us have a premium account on YouTube, Spotify, cable services, which we might not use. Besides this, also review your other membership facilities like fitness gyms. This may help you to save a lot of money.
Think of Ways to Reduce Spending
There’s a war between your needs and wants. And this intensifies when you have a limit on the resources. During this pandemic, you must be careful to identify what’s worth spending. Save money by cutting all the unnecessary and non-essential products for your home is a great way to do this. This includes comfort foods, entertainment, luxuries, and even home fitness equipment. Why?
The reason is simple. There’s uncertainty across the globe on the quarantine end date. This means you might be at home and away from work for more than a few weeks. It will be less efficient for your money to be spent right now on non-essentials. You have to maximize your cash on hand for any emergency spending that might come up.
Do Not Sell Your Investments
Stock markets dropped low as the pandemic hits the globe. It can be very stressful to watch as the numbers are plunging into the deep. This can also cause panic for some. But, never sell your stocks, especially if those stocks are under your retirement account. Long term investments such as this are those put aside for several years long. The need for it is not today as long as you are meeting your immediate financial needs. Never deceive yourself with an emotion-driven decision. Remember, the dropping of the stock market is normal, and it is certain that these challenges won’t last very long.
Contact Your Bank
If you are struggling to pay your debts, ask your bank if they provide certain financial assistance, which will deem fit for your financial needs. Consult them to help you with setting bill payments according to their priority. You may also ask to set up temporary skip payments or cancel auto-debit payments on those that are less important. A lot of bank institutions and private lenders are now extending help to those people who are facing financial strain during this crisis. Contact them and compare offers that will maximize your financial capacity. Plus, take advantage of low-interest rates.
Keep Cash-On-Hand Available
Social distancing is essential to limit the frequency of people going out. Withdraw a meaningful amount from your bank account enough to cover daily essentials. During the quarantine period, you should add an extra amount in case of an extension or worse, full-scale shutdown—better prepare than sorry. Emergencies are inevitable, so it is always a good practice to keep cash handy to a secure place at home.
Review Your Health Insurance Coverage
Create a plan for unexpected medical expenses by reviewing your health insurance coverage. Be careful to know what your policy covers and what it does not. This will help you better plan your medical expenses in case the need arises. Seek for cheaper alternative medications during the crisis. Opt to purchase no-brand drugs but with close effect to your usual medication. It offers lower costs which save you money. You can also research for a prescription that provides discount cards. This benefits both insured and non-insured individuals.
There are a lot more ways on how to handle your finances better during this pandemic. The government also provides different options for financial aid. This could be one of the terrible and frightening situations for us all, but this will surely pass. In the meantime, you have the power to control the way you save or spend money but never get to the point where you are already depriving yourself. Avoid irrational thinking caused by panic. Make sure to make wise financial decisions during this time.
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