You could be searching for a lot of personal finance tips now that the country and the whole world goes through an unprecedented health crisis. Several countries around the world are having economic problems as a result of the coronavirus pandemic. It has overwhelmed the medical industry and put an enormous strain on health workers.
The pandemic has forced governments to impose strict quarantine and lockdown measures in an attempt to flatten the curve of the virus. This is a necessary step as Washington Post shares that the virus has hit all 50 states. This is meant to protect the people and keep them away from the virus. As a result, a lot of businesses are forced to cease operations in the meantime while the whole country tries to solve the crisis.
As businesses and companies experience a massive slowdown in almost all areas of their operations, personal finance tips start to make a lot of sense since you will be experiencing a lot of disruptions in your finances. If you are lucky, you could be working from home and still earning a living. It is also possible that you could be working in a reduced income or none at all. These are definitely hard times and you need to look after your finances.
It is true that no one is prepared for what has happened but countries and governments and different institutions are trying to do the best they can. This means that you need to do the same and find a way to manage your funds better. In light of what is happening, here are a few things you can do to help you accomplish just that.
Talk to your creditors about hardship programs
These are difficult times and one of the personal finance tips you could be forgetting is the fact that you can reach out to your lenders. They might have some programs you can take advantage of during this time. You need to understand that no one was prepared for this pandemic and everyone is just trying to do their best to stay afloat.
As such, there are financial institutions that are doing their best to help out their customers. Some credit card lenders allow their clients for payment extensions and waive fees that ordinarily comes with late payments. Some lenders will also offer a credit limit increase to help clients who might be relying on their credit cards for extended periods of time before they get their salaries.
One thing you need to keep in mind when you do get some form of assistance from your lender is that you still have to exercise proper money management. An increase in your credit limit is not a license to start purchasing items you want. Being given an extension on your payment does not mean you will start charging on your card. Remember that the pandemic hasn’t hit the top of the curve yet so a lot of things can still happen.
Make drastic cuts on your budget
Drastic times call for drastic measures and this includes making critical adjustments in your budget. This is one of the personal finance tips you need to take seriously if you want to sustain a decent living condition if your income is severely affected by the pandemic. Americans are not immune to the economic effects of this virus gripping the nation at the moment.
Sit down and go through your household budget to identify items you can take out or lower down. The end goal with this exercise is to make sure that you free up some funds to have an elbow room to move around when it comes to emergency needs. You never know when this will end so you need to stretch your finances for as long as you can.
It is also possible that you might have some subscriptions you can do away for the meantime like streaming services. You can choose to stick to one for movies and one for music rather than having two to three services just so you have options. It is also possible that you already have savings in your transportation and even food expenses since you have been staying at home. At the end of this exercise, you should have some extra funds in your budget.
Where do you put your extra money?
When you look at various personal finance tips, there will be numerous schools of thought on where you should put those extra funds One thing you need to keep in mind is that this money is supposed to help you get through the problem. That being said, you can look at the many ways to manage your funds while making sure that you can access it quickly when you need to.
The most common thing people do is that they just keep the money at home. Cash remains to be the fastest option whenever you need money at any given time. The downside is that it is not really that safe to keep big amounts of cash at home or when you go out. This is because it is easy to lose it and no way of retrieving it back.
One option you have is putting the money in a high-yield savings account. It helps secure your money so you do not lose it easily. It is also a good way of helping you earn some extra money along the way. Not a lot of people are taking advantage of this option. It also gives you ease in getting your money in case you need it. Take a look at these options and see where you are most comfortable with.
Personal finance tips point to side gigs at this time
One of the areas that could be hard hit at this point is the informal side-gig industry. However, there is also a case to be made that they are thriving at the moment. The reason is that there are businesses that are strapped with their budget and can only hire or wok with freelancers at the moment. One possibility also is that since a lot of people have a lot of time on their hands, they are able to look some side hustle online.
If you have been planning to set up your own online business, this could be a good time to do it. There are options where you would not spend a fortune to set it up and inventory and delivery are all automated. It is also possible that you want to start putting your passion out into the world and creating an online community and this can be the perfect time to do just that.
You can also take up being an online teacher especially now that you have a lot of time on your hands at home. There are a lot of people who are stuck at home much like you and would be willing to take up online classes. You can look for platforms that will allow you to help and teach people across the world for a fee. This should help you bring in some extra funds every month you can use to buy basic goods.
There are a lot of personal finance tips you can explore to help you get through this health pandemic that the world is experiencing at the moment. While doing this, you need to keep calm and stay focused on your objective of providing for your family’s basic needs.