How Are You Managing Personal Finance During COVID-19 Pandemic?
Year 2020 did not start as expected. COVID-19 made its appearance around March/April and since then it has extended its impact to almost all countries of the world. Thousands of people are losing their lives globally every month. The World Health Organization has called COVID-19 a global pandemic. Along with affecting health of people, the pandemic has hit professional sectors too. Innumerable people across the globe have lost their jobs; many are working on low salary. Infact hospitality and travel industries are facing the brunt of this pandemic severely as majority of operations of these industries have stopped.
To combat COVID-19, complete lockdowns had been announced in almost all countries for months. This has impacted small and medium businesses drastically. Daily wage earners are struggling for money and food. Global economy is facing one of the worst recessions and the effects of the same are expected to continue in the coming years. It is needless to say that we are living in an emergency situation where survival has become a great challenge for all of us. Finances of people have been hit drastically. In such a situation, it is recommended to spend wisely and refrain from making unnecessary purchases.
I would like to share my thoughts on how we can manage our personal finance better especially when we are living under extreme financial uncertainties.
Forget about using luxury items: It is for you to decide as which items are ‘luxury items’ for you at this moment. Make short term plans and purchase things which are really essential and required. Refrain from investing in shopping extra clothes, costly consumables, gift items etc. Do not organize or attend parties and don’t think of home renovation etc. until and unless it is absolutely necessary. You can make substantial savings with this.
Don’t borrow money from anybody: During financial crisis, we often tend to borrow money from friends and close people. But in this situation, try avoiding this as it will become an additional burden for you to pay off the loan. Use savings that you have wisely and try to subsist in what is available.
Manage a 25% cut on daily shopping: If you are used to elaborate menu for your meals, it is time to cut down a bit on that. In this pandemic situation, it is essential to consume nutritional foods for immunity-boosting. Regular shopping of vegetables, eatables and groceries can be minimized to some extent for extra savings. A 25% cut on daily shopping is more than enough.
Try for a part time income, it will be helpful: With increasing expenses and limited source of income, subsistence is becoming difficult in such a crisis situation. Looking for an alternative source of income is a great idea. There are different kinds of internet based jobs, which don’t require any expertise and can be done from home. Many people have earned decent money with such jobs. If funds are no issue, you can plan a side business as well.
Renew your Medical Insurance policies on time: Though relaxations have been provided on paying of premiums for insurance policies, it is recommended not to delay the same. It is understandable that making such payments in trying financial conditions is not easy, but one shouldn’t ignore the same. You don’t know when you will need your health insurance policy. It is recommended to keep it updated and valid.
Stay fit and avoid depression: Try to become stress-free-; do some exercise, yoga, see motivational videos, talk to friends and family, indulge in various kinds of hobbies etc. These may help you staying away from depression / frustration. It is just a matter of time, we will overcome this trying situation.