We are in a very uncertain time at the moment due to the Coronavirus pandemic. And because of this, understandably many people are worried about their current and future financial situation. With the closure of shops, bars, retail outlets and other businesses, undeniably the future is worryingly uncertain for the economy.
However, it’s vital that you should try and not panic during this time. Panicking will only cause you more stress and worry – plus it could lead to rash financial decisions being made that affect you negatively down the line.
Although this is easier said than done, it’s essential if you want to stay on top of your finances throughout the pandemic.
If you’re still uncertain as to what steps to take, however, here are some top tips that you can take inspiration from:
Look At Your Outgoings and Set A Budget
Although you won’t of course, be spending out on expensive restaurant meals, vacations away and trips to the salon, you might be overspending when it comes to other things.
If you’re constantly ordering take out or you’re paying for subscription services that you’re currently not taking advantage of, then it’s time to cut these out and save money where you can.
By revisiting your budget and becoming more strict with it, you’ll be able to keep on top of your outgoings. This is particularly important as we don’t know how long the pandemic will last and what the economy looks like in the future. By doing this now, rather than later, you will feel more confident about your finances.
Keep Paying Your Bills On Time
Due to the pandemic, you might have lost your job or you aren’t receiving as much income as you did prior to it. However, despite this, you must try and keep paying your monthly bills on time.
Thankfully, there are ways that you can get help during this time if you’re struggling with paying your bills.
The first thing you should do is try and contact your creditors before a payment is missed. They might be able to provide you with the assistance that you need. President Donald Trump has also promised to give financial aid (known as the ‘Stimulus Package’, that’s worth $850bn) to citizens that require it during the lockdown. Just make sure that if you want to apply for this, or any other financial aid, you’re aware of any payments that you’ll have to pay back when the financial crisis ends.
Seek Professional Advice From Financial Experts
Whether you have savings, investments or retirement accounts that you’re concerned about during this time, it’s a good idea to seek professional advice about them.
As recently there have been significant fluctuations in the U.S market, you may be tempted to make a hasty decision. But it’s vital that you consult with a financial expert before you do this.
This is particularly important when it comes to pensions – due to the misselling scandals that have plagued the international market in the last few years. Although you can, of course, getclaimsadvice.co.uk if you are mis-sold one, it’s good to ensure that this doesn’t happen from the get-go.
Create an Emergency Cash Fund
If you are still working and you’re able to save money, consider creating an emergency cash fund. Particularly important due to the clouds that have unfortunately gathered over the global economy, it’s critical as the future state of it is so unknown.
If possible, save at least 1-3 months of your usual spending in an account for the recession that is likely to hit in the next 10-12 months. The difference between paying your future bills on time and having to rely on loans and credit cards, it’s a way of assisting your future finances.
Safeguard Your Money
No matter what your current financial situation, it’s important that you’re not tempted to head out to an ATM to withdraw more money than you need.
By allowing your cash to remain in your bank instead of in your home, you will be able to access useful federal protections that will safeguard it in case the intuition shuts down due to the likely recession.
Look Into Your Insurance
Even though it’s advisable that you evaluate your insurance needs every year anyway to guarantee that you’re getting the best possible price and inclusions, it’s especially important at the moment due to Coronavirus.
For example, in the present, you might not need to pay for car insurance or you can reduce the price based on your usage – as you’re likely not to be using your car very often. This can result in you saving some money which you can then put into your emergency funds or your weekly grocery budget.
Try To Stay Focused on Your Long Term Goals
Although no one at the moment knows what the future will bring, it’s important to not become demotivated with your long term financial goals. If anything, now is the time to take action and discover ways in which you can improve your finances.
Whether you start to learn new valuable skills that will help you to unlock a better career once we’re out of this pandemic or you’re becoming savier when it comes to budgeting, it will help make the future in terms of your finances feel brighter.
It might seem tricky to stay on top of your finances during the pandemic – don’t worry you’re not alone in this.
But If you follow the right steps and you’re sensible with your money, there’s no reason why you can’t efficiently and effectively monitor and manage your finances.
You just have to try and stay positive and not make any rash decisions – think not only about your current situation but what you want to achieve in the future. And if in doubt, seek professional guidance – this could prove to be incredibly invaluable during this time.