How do you manage your personal finance? This article would show you how to manage your personal finance in uncertain times. Let’s go.
The economy of different countries has experienced drastic effects that have made the year challenging so far.
Personal finances and budgets are not left out because when a country is experiencing a fall in its economy it affects every citizen.
The Coronavirus pandemic this year has proved to every one of us that we do not know what the future holds. Who would have thought that we would experience a recession by this time? Many of us might have probably been spending way over the edge and these tough times may have also dealt with us. This sole reason has made this article a necessary one.
In uncertain times, like the coronavirus pandemic, money moves even without us realizing it. We spend money only to realize that we have nothing left. Besides, this pandemic has increased the unemployment rate by about 8.4%. People have been asked to stay home, salaries were slashed and some were laid off work indefinitely.
If, we do not manage our finances we might not survive during these tough times. That is why I decided to enlighten you, on how you can manage your personal finance in tough and uncertain times like the one we are currently experience.
Flow with me, as I list out ways to manage your finance;
Here you have it;
Put Your Savings In a High-Interest Savings Account
Most people lose out in potential interest every year because they save their money in a bank that yields little or no interest. They even end up losing money most of the time.
Why not keep your savings in a bank that guarantees you at least a 1.75% interest rate?
Doing this would help you get more overtime and would ensure you are not broken or out of cash when tough times set in.
Protect Yourself From Scammers
This period being a tough one, people are seeking ways they can make money and survive. This has led to an increase in fraudulent activities and cybercrimes.
Scammers are all out to trick gullible people out of their money. Some of them hide behind the COVID-19 ‘mask’.
Most of these scammers claim they are from the CDC and trick people into making a reservation to be vaccinated with a security number or credit card.
Some of them go to the extent of asking for information for a coronavirus test, they send emails or texts asking you to click a link. Please, do not click if you are not sure of the link, because some of these links spread malware to your device or phone.
I know in times like this, it is tempting because everyone wants to make extra cash to survive. Which have led many people to fall into the traps of scammers.
The scammers, probably will promise you that you can make some extra bucks by doing what they ask you to do or sharing information they ask you to share.
Do what you can to protect yourself and your personal finance from scammers. By doing this, you can easily manage how your personal finance is used or spent and avoid it been tampered with.
Program Your Cash
This is all about developing a budget. You have to make a spending plan, and your income should be greater than your expenses and savings combined.
You can check out our website; they have several online resources that can assist you with budget preparation.
A worksheet or spending plan spreadsheet that uses pre-programmed Microsoft Excel software can be downloaded to make income and expense calculations.
Downsize Your Debt
Downsizing your debt is crucial in managing your personal finance during uncertain times. When you aren’t carrying a lot of non-mortgage debt, a financial crisis event is less difficult. Pay off all outstanding debt as quickly as possible.
There are ways you can downsize your debts; they include:
Add Up All Debts
Write down everything that you owe and also include their interest rate. After writing them down, you need to prioritize your debts; note down the priority debts, like: rent, mortgage, tax, bills, and any other loan; and the non-priority debts, like: overdrafts, payday loans, and money borrowed.
By doing this, you would know what debts need to be paid off first.
Cut Back On Luxuries
Cutting back on setting things would provide you with extra cash. Take note of things you spend money on; you might be paying a lot on a T.V package or a landline.
Cut your luxuries down by 50% and remember it’s just for these uncertain times and it won’t be forever.
Use Your Savings
You could use your savings to pay off any debt, because the interest attached to your debt might probably be more than the interest earned on savings.
However, if you feel you would face any penalties for paying things off early, you should probably leave your savings.
Find an additional part-time job to get a little extra cash to pay off all your debts.
Next on how to manage your personal finance is;
Practice Healthy Habits
I know you might wonder how maintaining a healthy habit can help you manage your finance,
But here is the thing;
Having health problems that arise from poor habits can increase the effects of a financial crisis just like outstanding debts.
Therefore, do the necessary to stay healthy to avoid non-routine medical expenses. Engage in frequent exercising, eat healthy and nutritious food, and stop smoking.
According to a saying: “Health is Wealth”. When we invest in our health we avoid incurring expensive medical bills that can thwart our plans for managing our finance.
Create or find a different source of income aside from your day job. This would enable you to earn extra cash for uncertain times.
Build an Emergency Fund
This is like saving money, but building an emergency fund doesn’t necessarily require you to save money in a bank.
You can reserve from the scratch, you can start today. Every dollar counts.
Throw in a dollar or two every day in a safe place to be used later in case of an emergency.
You build confidence, knowing that you can handle an unexpected expense or events like a job loss or medical procedure.
* Contact CareerOneStop.com to look up the unemployment office and guidelines.
If you lose your job or you were temporarily laid off you can qualify for unemployment, thanks to the CARES Act.
* The Families First Coronavirus Response Act can help you if your child is out of school and makes your job impossible to do. It provides you two-thirds of your regular pay for 12 weeks. It also expands family and medical leave.
* Ask for professional help if you are a beginner when it comes to the topic of “manage your personal finance.”
*Start saving for retirement.
No one wants to experience a recession, but since we have no control over uncertain times these ways to manage your personal finance would go a long way in helping you through those times when you face it.
Please, kindly share your views concerning how to manage your personal finance in uncertain times.