Every one of us has experienced differing struggles during the COVID-19 crisis. But the one struggle that most have invariably experienced, was coping with financial stress. Whether your problems stem from a loss of work, running your business, managing cash flow, escalating debt, unexpected expenses, or a combination of factors, financial worry is one of the most common stress factor in modern life. If you are worried about the state of your funds, you are not alone.
There are several floundering in the same choppy waters of financial distress. The pandemic is thus not only a health crisis, it is undoubtedly a financial one too. Here are a few of my tips to help you cope with your finances during COVID.
- Get out of loss making ventures. Make Stop Loss Decisions. Do not delay such decisions.
- Keep living expenses for 6 months in hand as your safety net.
- Avoid Impulse buying, however small or big it is, it all adds up!
- Add supplementary income streams to your primary source of income. If salaried, try to aim for higher incentives, bonuses, etc.
- Keep track of ALL your spending. When you’re faced with a pile of past-due bills and mounting debt, buying a coffee on the way to work may seem like an irrelevant expense. But seemingly small expenses can mount up over time, so keep track of everything.
- Look to make small changes at your work place and at home.
For every expense or purchase to be incurred, evaluate the 4 options. Deny-Delay-Stagger-Incur. - This is the best time to develop savings as one of your habit.
Resolving financial issues tends to involve small steps that reap rich rewards over time. In the current economic climate, it’s unlikely your financial difficulties will disappear overnight. But that doesn’t mean you can’t take steps right away, so get started now!