Four financial wellness tips for those affected by the pandemic
During these unprecedented times one of the things we have to deal with is financial fear. Whether you have lost your job entirely or you have taken a pay cut, it has definitely caused a strain in your daily spending.
Considering the fact that a majority of the working class have financial fears, the pandemic has doubled this fear with good reason. We no longer know what tomorrow holds and effects it may have on our businesses and jobs, most people are simply taking it one day at a time.
Although there is nothing we can do about these factors, there are certain guidelines we can follow to work through our anxiety and have some grip on our money management skills. Here are some financial wellness tips to help you navigate these tough times and live through the pandemic:
- Cut down on your spending
Divide your spending according to importance of need and want. This way, you can postpone certain things or completely forego them at the moment for the sake of saving whatever little you have.
This is not the time to continue ordering food and dining out. Cutting down on such small unnecessary bills is a sure way of always having money at hand.
No matter the changes our financial lives have taken leading to stress, pay the most important bills first. Considering the purse strings have become tighter making decisions with mental fatigue becomes even more difficult, take urgent bills out of the way like rent, utilities, etc.
To improve your relationship with money aka financial wellness, learn how to budget with what you have no matter how little it may be.
You need to have a clear understanding and picture of where you stand financially. List down all your expenses and review them in order of importance.
If you don’t know how to go about it follow the 50-30-20 rule for budgeting.
50% of your earnings should go to fixed costs that must be paid like rent and bills. 30% should be set aside for variable costs such as groceries while the 20% should go to savings or building an emergency fund.
- Set up an emergency fund
You never know what else can disrupt the global economy so take this opportunity to learn and plan. Everything can change in a matter of seconds and what you have may determine how fast you regain your footing.
To avoid a potentially frightening and stressful event like the one we’re in at the moment, seek to set aside some money no matter how little it may be.
This will help you prepare in case you lose your source of income or whatever financial setback you may face.
- Supplement your income
While it may be difficult to be motivated after the financial hit you may have taken, this is not the time to feel sorry for yourself.
Dust yourself up and look for other ways to earn more money. If it means working at a level below your skill set do so. Look for freelance opportunities you can do at home or during your free time and if you can spare some money start a low-cost side hustle.
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