At a time when we are all experiencing the harsh drastic changes and a public health threat brought by Covid-19, it is not just affecting our social and professional lives but also our financial and economic environment negatively. In these charts, fluctuating trends of the economy during the pandemic is shown. There is no better time to pay attention closely to managing your finances, especially during a state of emergency.
Create a new game plan
Let’s face it. Most people are not ready and did not have enough emergency funds for this pandemic because, frankly, nobody knew that it would happen. It all took us by surprise. But let us focus more on what we can do now.
Check where you are at in your emergency funds. If you do not have it, create one as soon as you can. Re-evaluate your priorities, and lessen your non-essential expenses so that you can allocate those to your emergency funds. Contact your bank and take a look at your statements and credit card loans. Everything has to be negotiable at this point.
Check your government
In times of state of calamities, it is imperative that the local and national governments provide the best support that they can give to its people. It is important to check what they offer in times of need.
Many businesses have been forced to shut down, which has resulted in unemployment and the stock market hitting an all-time low. So if you lost your job, too, because of the pandemic, inquire immediately if your local government offers unemployment benefits or other programs that may help you and your family. The federal government also ordered mortgage companies to skip or reduce payments, so check if you qualify for those.
Invest in personal insurance
If you are one of the lucky people who get to keep their jobs, then it is time to get your personal insurance updated. In recent data, the files for unemployment insurance rose together with the increased claims in all 50 states. If you already have insurance, make sure that you do not have any gaps in your policies. It is also a great time to check and maximize your employee benefits if you are employed. If you are a business owner and are struggling to keep your business afloat, you might want to consider and offer comprehensive health care plans for your employees. Having a disaster management plan proves to be beneficial to your mental health and anxiety, especially during this pandemic.
Establish another source of income
Most people do not focus on this one because, honestly, having a full-time job is already exhausting as it is. But there are multiple ways you can find another source of income without committing too much of your time, such as finding small businesses and investing a small capital to help them expand.
You can also take advantage of online apps and technologies. Some financing apps offer savings accounts with a pretty decent interest rate or some offer cashback. If you have hobbies such as baking and writing and if you think that you can generate a small income out of those hobbies, then start it now. It is better to use your hobbies. You can do the things that you like doing while making a small fortune out of them.
Protect yourself from frauds
Unfortunately, there are still some people who resort to these kinds of things. They make a living out of deceiving people even in times of hardship. Be extra careful in giving out your personal information to anyone. There are many ways fraudsters style their schemes.
Be sure you know whom you are dealing with. Some will pretend to be your bank, and you may receive some unsolicited phone calls or emails. But if they ask for your personal information, such as your card number or your PIN, DO NOT give them that. Even your bank will not ask these kinds of information. Check your credit reports regularly to see if there are any unrecognized transactions.
Take care of yourself
Remember that you control what you consume. Make sure that you maintain a healthy diet and lifestyle so that you can avoid unwanted illnesses in the future. Perform home workouts regularly to boost your immune system, especially since we are dealing with a virus. And lastly, follow health protocols such as washing your hands, wearing a mask, and social distancing. Do it not just for yourself but also for the surrounding people.