posted on 2020-05-13 14:25:21 by Admin
In the time of crisis, managing funds is not easy. With a loss in employment and drying up savings, it is essential to manage your finances smartly. These difficult times have led to the loss of jobs, pay cuts, shut down of businesses. Which leads to concerns related to financial resources to meet daily needs. So, instead of waiting for a situation to go right, it is better to plan your finances now. Proper management of your money will help to overcome the current situation. In the article check out some practical ways tomanage your money during COVID-19.
In the current crisis, look for avenues to save money. Use the opportunity to manage your funds better. These nine ways will help you manage your finances judiciously.
Pay Your Credits
First, pay all your outstanding bills, especially credit cards. With the delay, you may have to pay more as credit cards have a high rate of interest. Also, pay your electricity bills, gas bills to get the services on time.
In a normal scenario, a person tends to spend 50% on essentials (food, EMI, education), 30% on (restaurants, clothing), and rest 20% on savings or investments. So, this 30% can be saved now. So, re-evaluate your budget, drop luxury items for a while to save money. Make a list of your requirements and mark out those which can wait and are not essential now. This way you can save money for an unprecedented situation. Also, be empathetic towards who is in need, help them during this situation.
Buy Enough, Don’t Hoard
It is recommended not to stockpile goods in large quantities. Buy enough as per the requirement. Hoarding will only lead to overspending. Even the Government has assured that there will be no hindrance in the supply of essential utilities.
In case you are having memberships of monthly paid services, then cancel it quickly. For example gym memberships, social clubs, etc. Also, check if you are paying for any paid software, then remember to cancel the renewal. Whenever the situation is normal, you may start the services again.
Start Online Business
Look for opportunities online, there are many options to earn money by working online. Also, if you can teach, then you can take online classes as well. Many companies post their requirements online now. Search on the internet, you will able to find jobs from online teaching to large consulting projects. Meanwhile, look for some skill-building courses. There are many websites offer free courses.
For a while try to spend from your savings only. Unless an emergency, do not borrow from friends, family, or credit card. Use a debit card for the current transactions. In case of unforeseen funds requirement, you can opt for small ticket size loan or covid-19 loans, given that you have the plan to repay it later.
Long Term Investments
In this time, it is important to focus on the short term for a while. Plan for the daily requirements. Maybe someone is enticing you to buy property now, but this is not a time for a gamble. Let's save money for a while, we never know when the situation will be normal again.
This is the high time to use an online transaction services. Keep the cash for emergency requirements. Use UPI based transactions and online transfers. In case of extra cash, deposit in the bank accounts. Indian banks are safe and put money in high return saving bank accounts.
It is advisable to continue your monthly investment in PPF or SIPs. If you receiving a salary regularly, then maintain the investment to preach the benefits later. On the other hand, if the income is restrained then stop making the contributions.
Along with, managing finances during coronavirus, it is important to manage your debts as well. In case of regular income, keep paying your EMIs otherwise use the option for the moratorium.
● Credit Card dues- Keep paying the credit card dues. Holding them longer will lead to piling up of interest amount.
● Fresh Loan- Apply for a short period and small tickets loan. Choose the option for the fresh loan only when you will be able to repay it. To get the best personal loan in the market, compare the interest rate of different banks. Only after the diligent study, submit your application with the bank.
● Using Moratorium- Banks have provided the moratorium until 31 May 2020. So, in the case of illiquidity, avail this option. But the interest rate will be accrued during this period.
Currently, you must have two questions in your mind, what should I do with my current investment or should I make a new one? So, in this situation, you can opt for these ways to manage your investments.
● Proper Plan for investment- For any fresh investment, you need to clear with your goals. The money you can invest monthly and what you are expecting in the end. Calculate the monthly contributions, return of investments, optimal returns expected.
● Be Calm- Don't panic with the lots of information, just focus on what are your ultimate financial goals. Whether investment can be done along with maintaining liquidity for the present. With the ongoing investment, don't rush to sell. Let the situation gets stable, it will help to gauge the right price for the investments.
● Pool of Investments- It is usually advisable to have a mixture of investments like equity, deposits, mutual funds, real state, gold, etc. In the current crisis, you can still invest in multiple options depending upon your income, risk appetite, financial goals, etc. For now, bank deposits are more beneficial for emergencies.
Maintaining Insurance is also important along with making monthly EMIs. Check out these ways to manage your insurance during the COVID-19 crisis.
● Pay Monthly Premiums- Having medical insurance is important to save from any unforeseen financial needs. So, in case you have ongoing insurance, keep paying its premium. It will help to cover the finances for hospital and medicine bills. Also, you can top-up the current plan at a low cost for better coverage.
● Employer-Provided Insurance - Insurance that is provided by an employer may not cover all the cost of medical bills. Also, after the employment period keep the insurance policy intact by paying interest rate at market rate. Along with it, have other medical insurance policies as well for large coverage.
● Insurance for long term Plan- Having medical insurance will also cover your family in case of any untimely health. So, proper planning now will help your family and kid's financial needs later.
For any more guidance, please contact us at email@example.com. To know more about, COVID 19 Loans, best personal loans, visit Loanadda.com.