The lockdown caused due to the Coronavirus Outbreak is almost 3 weeks old and people around the world spend most of their time with their families and try to do things that they always wanted to do. Some people spend time reading a new book, binge-watch their favorite series and movies and others try to spend time exercising. Likewise, it is going to be a good idea if you will take out some time to manage your finances because you never know what unpredictable turn the Coronavirus situation will take. You must manage your spending today so that you have enough money if any emergency occurs.
Here are a few ways that can help you tighten up your finances and make sure that you have organized finances and sufficient savings to get through a difficult time. To make things easy for yourself, you can take help from different apps as well. You can have a look at Xero.com, Mint, YNAB, PocketGuard and many other apps and platforms that you can use. To access them you can use a reliable and speedy internet connection. Let’s have a look at the different ways you can manage your finances
Review Your Budget
You might have experienced a cut in your paycheck or a declined income due to the pandemic. So it is a better practice to go through a rigorous budgeting drill. During the lockdown, it is a high possibility that you will save on fuel, parking, entertainment and eating out. You might have got expenses like gym memberships and other subscriptions. So consider these costs and expenses when you are reviewing your budget.
Have a Financial Date At Home
Make some good use of the time during the lockdown and schedule a financial date with your business partner or spouse. Make sure that you have the latest bank statements with you including your salary slips, vehicle and home loan statements, and other statements that you receive for your credit card. To make your financial date beneficial, make sure that you are transparent and upfront in communication.
Make sure that you take some time to study and get to know about different aspects of financial education. You can subscribe to a financial blog, listen to a podcast, watch and subscribe to a YouTube channel with expert opinions on different aspects of the trade. You can have a look at the financial news on TV as well. For that, I’ll suggest that you should get cable TV services by Spectrum and look out for Spectrum Cable Select channels that have a wide array of networks available at a budgeted rate.
Have a Thorough Look at Your Bank Statements
Make sure that you have your bank statements for the past three months. Go through them line by line and pay careful attention to the bank charges and the transaction fees charged on your account. It is a good practice if you will double-check all your debit orders to make sure that they are clearly accounted for.
Create a Strategy for Your Emergency Fund
In times like these where you are quite uncertain about the situation, especially during the spread of Coronavirus and the lockdown situation at hand. You should have a strategy for your emergency fund. Make sure that you have sufficient funds for a period of 3 to 6 months and prepare your spending accordingly.
Figure Out Ways to Use Your Loyalty Programs
Sometimes we become quite reckless when using loyalty cards, accumulating miles, earning reward points. We don’t realize how valuable these points can be and how these programs make things work. You can take some extra time for yourself and figure out how these loyalty programs work and how one can maximize their benefits and use these rewards in a better way.
Consult With Your Bank
Many people and their income have been affected by the current crisis. If you are one of such individuals or your organization is suffering from the current pandemic situation, talk to your bank or any of their representatives. You can do the same with your creditors as well. Many banks have announced different measures for their customers with loans and debts. All you need to do is be proactive and contact your bank and make the necessary arrangements.
Have a Game Plan for Festive Seasons
Christmas is around 7 to nine months ahead. This might also be the last thing that will come to your mind. For people who are having their religious obligations and other rituals and festivals coming soon, this is a good time to create a budget for your festive season. Make DIY gifts and cards this year or use your loyalty card or rewards to buy gifts for your family and other traditional stuff. This will help you focus more on doing something good for your loved ones.
Have an Action Plan for Life after the Outbreak
There is no doubt that it is a difficult situation that we have at hand, but it will pass as well. You can spend time making plans about the financial and other initiatives you will be working on when the crisis at hand will get over. Plan getting yourself registered for a marathon, a degree program, a holiday, and arrangements for a family reunion or starting a new business.
Re-evaluate Your Goals
Once you are done with everything, make sure that you re-evaluate your long-term financial goals. Give things that are important to you a second thought including your dreams and goals. Assess your current standing and the place where you want to be.
It is always a good idea to have a plan of action to make sure that you survive a crisis situation like the one the world is facing today. The Coronavirus Outbreak has created havoc in the world. The good part is that conditions are still manageable. You can use the lockdown period to evaluate your current financial standing by managing the resources that you have at hand and things that are still within your control.