We are all aware of the outburst of corona virus and its impact on the social, economic status of every country across the globe. Many employees are experiencing a reduction in income or loss of pay because of the effective social distancing measures being taken to stop the spread of the virus.
Dealing with finances could be a daunting task for every individual.
Well, if you are one among those worried about your financial situation because of the pandemic just remember that you are not alone in this. Instead of just being panic about the situation you can think of some smart moves to stay financially stable. Below are a few financial suggestions that can help you figure out the uncertainty of your long term financial assets during COVID-19.
An Eye on the Essentials:
At this time of the pandemic, we are allowed to step out only to get the essentials like groceries, medications and other things we might need. To save on these, make sure that you get foods that don’t spoil when stored for a long time as we never know how worse this situation can get. Try to fetch items like rice, beans, pasta, onions, and carrots as they can last long. But do not overstock the products and get into new health problems.
Maintain Daily Budget:
If you haven’t been maintaining a daily budget, then it is time to start it now. This budget can not help you track the expenses but it can also give you better control over the money. Also, you can even have better long-term plans with the help of a daily budget. Try to cut down your budget as low as possible until the situation gets back to normal.
Try to Shift the Money:
With work from home being practiced these days, you can save a lot of your travel expenses. Try to save that money and use them when the economic situation gets too bad. Also, see if you can use credit cards with lower interests than that of the ones with higher interest. But acknowledge the transfer fee before you do so to avoid high transaction processing fees.
Check on the Loans and EMI’s:
Contact your bank and let them know if you find it difficult to pay your loans and debts at the moment. Discuss with them if there are any alternate payment options available to delay, adjust or skip your payments for a while. Banks do always have a deep concern about the financial stability of their customers. Be prepared to explain to them your situation in detail and when can you restart
the regular payment process.
The Mortgages:
There are several mortgage options being projected to face the adverse effects of the COVID-19 on the public.
The Mortgage Forbearance:
Check if there is a forbearance option available that allows servicer or lender to pause or reduce your mortgage payments for a limited period of time. Note that this option does not completely erase the amount you owe; it just allows you to pay in the future. If your income is restored, reach out to your servicer and resume making payments as soon as you can. There may be different forbearance options available based on the kind of loan you have.
Make a Financial Plan:
If you are an active investor in the stock market, the current situation might get really tough to bear if you do not have a proper financial plan in place. The current bear market hasn’t been witnessed for a long time now in recent times. To protect yourself from this do not try any new investments. It is common to shift your investment strategies out of panic, but just make sure that your strategic
financial shifts do not affect your long time goals.
These are a few financial tips you can follow to remain wealthy during the time of world crisis. Try to maintain as much as liquid cash you can if you are skeptical to make any long term investments, as the study suggests that this situation might last for long and cash remains to be the king at last.
Stay in contact touch with your lenders and bank managers to be aware of any policies that come up and take advantage of the benefits.