Everything feels dire right now. The effects of the current pandemic can be wide-ranging concerning your finances and your well-being. It’s okay to feel overwhelmed but don’t panic.
Remember the power you have is taking action. Following through with these steps will help keep you afloat, and have you coming out the other side with healthier money habits.
Check-in on your funds
Now is the time to take stock of all your accounts. Know how much you have available and determine how far it can stretch. This inventory includes cash at hand, income, savings, and emergency funds.
Get clear on what you have, where it is, and when and how you can tap it if you need it.
Know the minimum amount you need to get by
Knowing how much you need through each month is important. Instead of overspending on non-essentials, cut back on your grocery spending, cancel services and subscriptions you don’t need, and delay payments that aren’t urgent.
Prioritize your needs over wants and avoid taking on new debt if possible
Work with a budget
It’s important to know where your money is going now more than ever. Once you’ve figured how much you have and how much you need to get by, review your budget, and know where cuts can be made.
The hard part will be sticking to your budget, but this will help you control your spending as well as stretch what you have in case the crisis lasts longer than expected. Getting on a budget will help you plan for bills and manage your finance effectively.
Try to keep building your savings. Events can and will happen. Keep saving in anticipation of future needs. This way, if you have a lower income or you lose your source of income down the line, you’ll have the funds to help you get through.
If you have a stable job, find ways you can save in the coming weeks. Set aside any money you can to build even a small emergency fund. Being intentional with your spending now will help you preserve some cash for saving.
Prepare for the future
Prioritize your current and future needs. This crisis will end eventually, and the economy and markets will recover. You have the opportunity to utilize the time given to you productively. Do what you need to do to improve your financial health.
Review your goals and understand where you stand financially. Start planning to make moves towards financial freedom. Don’t let things just go back to normal.