The COVID-19 pandemic has made a significant impact on every aspect of human life. With business owners closing their establishments and people getting laid off from their jobs unexpectedly, it's typical for everyone to feel lost and unsafe.
Besides the overwhelming concern on physical health, the economic effects of COVID-19 are real and hefty. No matter who you are or where you live, this crisis can affect one's physical, mental, and emotional health. They play a vital role in your financial well-being and vice versa.
In these trying times, where almost everything is uncertain, you might wonder how you can continue living a normal life while trying to make ends meet with limited financial resources. It's undoubtedly harder, but there are ways you can do to keep your financial cool even amidst COVID-19. Read on and give yourself some breathing room.
Take Account of Your Financial Situation
Taking account of your financial situation during this pandemic is crucial. Whether you lost your job, your income has reduced, or no significant changes at all, you need to be aware of where you stand financially. By doing this, you can strategize and make adjustments to your financial behavior.
Every financial decision you make at this point is critical. Whether you're working or not, you need to account for every net paycheck you receive every pay period and your other income sources. It's essential to keep track of all your disbursements and debt obligations.
Most people know their full monthly income yet have less knowledge of their expenses without realizing its effects on their finances. But once you have an accurate idea of what your income is and what your expenses are, you can take additional steps to manage your money during this pandemic.
Prioritize Your Finances
Having a firm understanding of the money coming in and out of your life isn't the end yet. You might already know your financial condition by subtracting your total expenses from your total income for the month. However, you have to do something to take control of the numbers.
If the number is negative, it means you're spending more than what you're earning, which may result in a shortage of funds. Thus, you need to pay more attention to your spending habits. You can start by reducing your expenses until the total reaches zero.
Meanwhile, if the result is a positive number, it means you're spending less than what you're making. Thus, you can make use of the extra fund to increase your savings or debt payments.
Prioritizing your finances during this pandemic is important if you want to stay afloat financially. Determine which among your expenses are real necessities and purely nonessentials. By doing this, you can optimize your limited source of income.
Make Some Crucial Decisions
Once you take an honest evaluation of your finances, the outcome may not always be in your favor. Some might be resolved with simple budgeting, while others might need more than that. Focusing on your needs could be a solution, but it may not be enough to fix some financial issues.
As you go over your bills and debts, you might find out that you don't have enough resources to cover them. In cases like this, where you need a fast solution, you’d need to make crucial decisions besides the adjustments in your spending habits.
If you're struggling to juggle multiple debts and bills, consider different financing options to help you get by. You can opt for debt consolidation to make your outstanding debts more manageable. For emergency expenses, you can apply for quick loans. Just avoid bringing more harm to your financial health.
Educate Yourself Financially
Financial literacy is necessary to help you make informed and effective decisions with your financial resources. Investing some time and effort to educate yourself financially can help your current and future financial difficulties.
It can be easy to get overwhelmed with your finances during this pandemic. Moreover, you must have the skills and knowledge to stay on top of your finances. There are many ways to do this, and you don't need to spend a lot of money to learn about financial management.
There are free money management sources, helpful tips, and inspiring stories of different financial experts you can find online. If you can afford to get a financial advisor, it would also be a good investment. What's important is you're still making a way to improve your financial well-being. After all, learning shouldn't stop, even amidst the COVID-19 crisis.
Protect Your Physical and Mental Health
With everything going on around you during this pandemic, it's so easy to get stressed. The danger of coronavirus alone is already causing a lot of fear and anxiety to everyone. It's even more so when you're going through financial difficulty at the same time. But regardless of your finances, it's essential to protect your physical and mental health above all else.
There are many things you can't control during this challenging time, but focus on those you can and do something about. A solid support system, such as friends and family, is also essential to help you make it through this pandemic, whether physically, mentally, or financially.
About the Author
Karla Lopez is a financial planner working with clients from different industries. Her previous years of experience in marketing has shaped her to be passionate about helping people achieve their goals and dreams. In her free time, she watches documentaries and reads books.
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