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Sunday Magazine
Here are some tips on how to set up emergency funds for bills during this Covid-19 pandemic.

Lives are on hold all over the world as we distance ourselves socially to contain the coronavirus, but bills still pile up. Now is not the time for lectures on the value of having an emergency fund.

“You can’t just go pick up a side hustle right now,” said Erin Lowry, 30, author of Broke Millennial, a financial advice book that attempted to prepare her cohort for a rainy day such as now. Many people, regardless of whether they can telecommute, have had their hours cut, have lost their jobs or are facing some kind of financial crisis. We are at the point of making the best worst choices.

Here are some ways to prioritise.

Assess the damage

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First thing, Lowry said: “You have to face your numbers.” Do not think of this as budgeting, because the situation is changing so fast you cannot really think long-term. Take a breath and just deal with this month. 

What bills are due? How much cash do you have on hand?

Stall fixed debt

Your lenders and banks have probably already sent you a very sympathetic email about how they are there for help.

Take them up on it.

SEE ALSO: Kenya among top 10 African countries with highest coronavirus cases

“Consumers who are the most proactive and say, ‘Here’s where I stand,’ will get a lot better response than those who do nothing,” said Lynnette Khalfani-Cox, CEO of AskTheMoneyCoach.com and author of Zero Debt.

This goes for home loans, auto loans, student loans and utility payments.

Prioritise your needs

If it comes down to it, prioritise housing, because you need to keep a roof over your head, Khalfani-Cox advised. Owners will get a lot more leeway than renters, because it takes a long time to get through a foreclosure process.

Renters, especially those dealing with a small landlord they may know personally, may feel more pressure to pay. Lowry said the key is to know the rights in your state (or country), so you are not bullied by misinformation, like a landlord saying they can change the locks or throw out all of your stuff if you cannot pay.

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“Landlords do not want property sitting empty right now, so see if you can work out a deal like maybe you can pay 25 per cent,” Lowry said.

During the 2008-2009 recession, Lowry encountered a woman who prioritised her car payment over rent, because she needed transportation to get to work. Her fallback was that she could sleep in her car. “That’s something that a lot of people are going to face now,” said Lowry.

Ride your credit cards

No travel, no restaurants, no shopping sprees at the mall, no online shopping impulse buys.


We are all on spending austerity plans because of social distancing.

But there are some essentials you might have to front if you have job loss or reduced income.

You can use those on your phone for mobile quick pay or for online purchases.

“With credit card debt, the advice is always to pay more than the minimum, but when it gets down to it and all you can do is pay the minimum, that’s not the end of the world,” Schulz said.

The key is not to miss a payment completely. You will face fees and go into a penalty interest rate.

“When there is financial crisis and uncertainty, managing cash and credit is going to be critical,” said Adrian Nazari, CEO of Credit Sesame. “You need to sort out the least bad option.”   

Coronavirus Paying bills Emergency bills