The pandemic has added a lot of uncertainty in all our lives. With the world coming to a standstill for more than a month, everyone has had to adjust their budget plans for quite some time. The problems caused by these events have been particularly harsh for some people who lost their jobs or had to shut shops. With so much negativity around, it is natural to be worried about one's savings and financial stability.
Let us look at a list of a few budgeting hacks and savings tips to ride this tide smoothly.
1. Find a Part-Time Job
Given the job market's current scenario, finding a part-time job might not be the most straightforward task; however, in situations like these, always open new opportunities to earn more money if you know where to look. The lockdown has forced many companies to rethink their working models, and many of them have already started testing work from home models to optimize their budgets. This opens up plenty of opportunities in the part-time and freelance marketplace. Adding another source of income can be a great way to save more money and even get a sense of added security.
2. Redo Your Budget
Creating a budget is a practice that one should follow even in the good times. It, however, becomes of utmost importance in times like these. Having a budget calendar can help you manage and understand your upcoming expenses much better. This can help you prepare beforehand and give you a sense of comfort. You can either use one of the many free budget planners available online or use a table calendar. Whatever method you use, you must try to avoid unnecessary expenses and focus on more savings.
3. Get a Health/Life Insurance
Much like a budget, having a health and life insurance is also highly advisable. Multiple companies have launched insurance plans designed specifically for the pandemic. Some of these also include aids from the government, which should be availed if you are eligible. It is vital to look out for these and get the best plan for oneself.
4. Understand Your Investments
Most financial management is about managing risk. We all make investments in expectation of some interest on savings while assuming certain risks. With the changing dynamics of the business world, the uncertainty of any asset's performance changes dramatically. These times require us to ensure higher safety of savings. Understand where your money is parked and consult your financial advisor to move it to safer assets.
5. Check Your Emergency Fund
Maintaining an emergency fund for difficult times must-have in any budget plan. Your emergency fund should have enough savings to maintain your lifestyle for at least six months without any income. In times like these, it is better to bring that number up and even have a separate section for medical expenses. The idea is to be prepared for the worst and be at peace financially.
6. Avoid Debt
Taking debt for business expansion or other credit needs is not bad; however any obligation comes with its own risk. With the level of uncertainty around us, it is best to minimize risks as much as possible.
The Covid-19 pandemic has tested the strength of many of the strongest economies in the world. But taking small and consistent steps towards managing your finances correctly can help you mitigate this crisis.