The coronavirus pandemic and community lockdowns that come with it have affected almost all types of business operations. But since health is deemed to be the highest priority, such protocols are essential. As for families and individuals, this crisis puts their household and personal finances in chaos, especially those who are living paycheck to paycheck. Some lose their certain investments, while others totally lose a source of income.
In today’s blog, we’ll give you some tips on how you can keep your finances in order during and after the pandemic. Take note that the things below might not suit your situation, so consider those that apply to you.
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Secure your emergency savings
Financial advisors have always recommended saving three to six months’ worth of income or expenses in an emergency fund. If you’ve already reached that goal, make sure to continue saving and try to reach a year’s worth of your income or expenses in that fund. As for those who haven’t started their emergency savings yet, it’s never too late to start. Categorize all your expenses and smartly spend your money. The extra money you have from cutting down your unnecessary expenses can be saved on your fund. No amount is too small or big.
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Reevaluate your current budget
With the great uncertainties that this pandemic brings, you must have the funds to cover all your necessary expenses. Make this your top financial priority. To start, have a sit-down money talk with your partner and discuss how you can both conserve cash. Take a look at how much you’re spending in a 30-day period and find solutions on how you can cover it if you lose income.
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Review your insurance plans
Revisiting your health insurance plans is more important now than ever. Individuals and couples should take a second look at their insurance and ensure they have sufficient coverage for potential health concerns during this pandemic – and even after, of course.
Do you have your policy numbers with you? Are you familiar with the basics of your insurance plans? Do you know how your co-insurance works? These are just some crucial things that you should take into account.
If you have life insurance, check if the information in it needs to be updated. This is necessary if the person you listed as your beneficiary, for example, your ex-spouse, has passed away.
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Start other types of savings
As financial experts say, the less stable your job is, the harder you must try to save or contribute to your funds. Most people don’t realize that there are many important things to save for aside from an emergency fund.
Do you have your own personal savings? Are you able to start your retirement fund? What about loss-of-job savings? Are you saving for your children’s educational or future needs? If you aren’t able to consider all these before the pandemic, you can start them now, little by little, and one at a time. Regardless of the things you want to save for, ensure they are easily accessible. You can open new savings accounts for each one on your trusted bank.
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Keep investing, if possible
It may not be a great idea to invest in most markets due to the coronavirus outbreak’s impact on many businesses and industries. For instance, in real estate, owners aren’t rushing to sell their properties because of the low market prices. However, for buyers who have the funds for property investment, this is good news. If you have the financial resources to invest in, this is the perfect time to do it.
For this, we highly recommended that you seek professionals’ help to ensure you’re pursuing the most profitable opportunities without underlying problems. You can hire a property conveyancing expert for professional advice regarding the buying process, settlement proceeding, and the required legal documentation. You can also consult a financial advisor to help you reassess your investment of choice and mitigate any financial risk and mistakes.
Apart from that, you can also consider contributing to other investment accounts. Look at the big picture and focus too much on what’s happening in the stock market. Just be careful and smart in choosing your investments.
Managing and securing our finances should be a priority so you and your family can survive this pandemic and even come out stronger. Focus on the positive changes and work your way to ensure your finances won’t take a big hit. Money might not be everything, but it really is important, especially now.
