The Coronavirus pandemic drastically changed everything.
During the early onset of the pandemic, as the virus spread from country to country, states and local governments were fast to adopt lockdown protocols to contain the spreading virus and reduce exposure. As a result of this measure, several industries were affected. A lot of employees faced the possibility of layoffs, and many small businesses experienced disruption of operation.
All these caused financial stress to millions of people all over the world. There are few lucky ones whose source of income was not disrupted. They found themselves with enough money to pay off debts and save up due to lessened spending over the past months.
However, without heed of which end of the spectrum you belong to, being financially fit during these uncertain times would help you sail smoothly. We are all unsure when scientists would finally have a breakthrough finding the cure for the virus.
How to Stay Financially Fit During COVID-19
Know Your Rights
A lot of industries are treading on uncharted waters right now. And a lot of employees are stressed and anxious about the uncertainties. Instead of allowing panic to take over you, learn more about your rights as a worker. Know what benefits you are entitled to and take advantage of them. That way, you would have some idea of your expected income for the next months to come.
Follow the 50/30/20 Budget Rule
According to financial experts, following the 50/30/20 rule is a good model to follow for your monthly budget. Fifty percent of your income should be spent on necessities, including groceries, rent or mortgage, medicine, and utilities. The 30 percent is to be allocated to your wants, such as travel, entertainment, and eating out. Lastly, 20 percent should be set aside for financial goals, such as debt payment and insurance costs.
Do Not Hoard
Ever since the World Health Organization announced that the Coronavirus had reached its pandemic status, empty grocery shelves have become a norm. Instead of giving in to panic buying, take some time to assess your current supplies. Take into account the size of your household and the people living with you who have special needs.
Although states and each local government have set up regulations to deter impulse buying behavior of consumers, there are still those who are hardheaded and inconsiderate.
Be different. You will still have enough disinfectants and canned goods to last you for months.
Cut Back on Non-Essentials
Take time to learn how to track your spending regularly to see the bigger picture. We do not know when this pandemic would end. Thus, it is prudent to put as much as we can on our emergency funds.
If you always order your food every meal, why not cook instead? Cut back on streaming services you do not usually use. Learn as well to hold the urges of checking out items on your online shopping cart. Disciplining yourself and learning how to have a healthy financial habit goes a long way.
Create an Emergency Fund
If you are among the lucky ones who were given a chance to work from home, take this time to increase your emergency fund. Having enough emergency funds is crucial during these unprecedented times as we never know when this pandemic would end. Furthermore, it is best to have some money saved up in case there are unforeseen expenses that might occur soon.
Contact Your Landlords and Creditors
If you are among those whose income was significantly affected by the pandemic, chances are your emergency fund might not be able to cover up your recurring utility bills and rent. Instead of just allowing late payments to pile up, tarnishing your credit score, contact your landlord and creditors immediately, and notify them about your situation. Most landlords and utility service providers are willing enough to negotiate with you for an alternate payment scheme.
Find Alternate Source of Income
If you lost your job or your income was significantly reduced, why not use your skills and generate an alternate source of income. Right now, there are plenty of online jobs available in the market. Just within the tip of your fingertips, you can easily find work online. You can be an online tutor, a virtual assistant, and even run your eCommerce retail store.
As Albert Einstein aptly put it, “opportunity lies amid difficulty.” Although the COVID-19 pandemic caused several business closures, it opened a lot of business opportunities.
The eCommerce retail market and RV business are some of the industries on the rise. The medical field also opened a lot of medical franchise opportunities, as hospitals nowadays are jam-packed with COVID-19 patients. If you have some funds stashed away, enough to start a business maybe this is the opportune time.
Apart from thinking of your physical and mental well-being right now, it would be best if you gave time to line up your finances by following these tips.