In our patriarchal society, women have been the financial planners for years now. And specially during the pandemic, they are working hard as the frontrunners to sponsor basic needs of the family. While a few have started their home-based kitchens, others have outsourced their technical skills. Infact, every earning member is working hard towards setting the right balance between savings and investments. And this way each of us is coming out stronger to earn a livelihood and sustain their jobs.
Here are the 5 suggested tips to keep your financial management in control in times of Corona virus.
The pointers below will help the newbies to eventually learn money management and keep up their identity as well.
The first thing to remember is avoid being panicky. We suggest you take a breather and focus on learn from the below 5 financial tips to protect against the effects of COVID 19.
- Add to your emergency savings: Any professional planner will suggest that people build their emergency funds. A lot of people do not give importance to future planning. Because of the unforeseen circumstances, let’s be better prepared uncertainty caused for the pandemic. Begin by cutting off the unnecessary essentials & save that portion for later.
- Reconsider your debt strategy: Having a high-interest debt is not at all recommended. With the price volatility in the market, interest rates have further fallen. So, if you’re interested to refinance your loans at a lower interest rate, then go for it. Using a balance transfer credit card also sounds fine.
- Give your budget a makeover: This is one of those situations where you’re atleast able to cover your basic expenses. Under so much uncertainty for sustenance, you can attempt to redo your budget. Keep reevaluating your budget as the next best step to save cash. You can observe where all you can cut down like parking, entertainment activities, etc., especially when you’re working from home. This creates a special financial coverage to use in distressful times.
- If possible, invest more: If you’re planning to sell your investments, please don’t. A lot of people observe decrease in the value of their portfolio and try to sell their stock. However, you should leave your portfolio as it is and increase your retirement funds and investment accounts. We’ve experienced how the market shoots up in the end.
- Refinance your mortgage: Whenever the interest rates drop, you can attempt to choose refinancing. With interest rates at an all-time low, consider refinancing. A drop of 0.5% in the rates can save so much money on your mortgage. You can also try to reduce the term of your existing loan.
Additionally, you can follow the steps below also:
Establish a separate financial identity
Plan to build a separate financial identity out of your earnings, with least dependency on parents or friends. This is the cornerstone for a comfortable living.
Budget Your Expenses
It is a wonderful act to have the expenses planned whether it’s for the essentials or luxury items.
Keep your fixed and variable expenses segregated, categorically. According to the current financial status, changes can be incorporated into the financial plan. Track you spends and bill payments smartly, within the set budget.
You can also get yourself a personal loan, repay on time to build a good credit score!