Maintaining Financial Wellness Throughout Coronavirus
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Managing your finances can be tricky at the best of times, but it can be particularly difficult in the midst of a pandemic. If the COVID-19 outbreak is affecting your financial situation, there are ways to re-take control of your finances. To learn more, take a look at these top tips for maintaining financial wellness throughout coronavirus:
Identify Your Essential Expenditure
Examine your household budget and your bank statements to calculate how much your essential expenses amount to each month. These are things you absolutely need, like food, utilities, and mortgage or rent. When you know how much you have to spend each month, you’ll have a clear idea of whether your current income is enough to tide you over.
Cut Your Costs
If your income has dropped due to coronavirus, you may need to cut your costs for a temporary period. As well as letting go of as many luxuries as you can, explore simple cost-cutting measures too. If you’re paying for memberships or subscriptions you no longer use, for example, see if it’s free to cancel them. Alternatively, you could look into some other ways to cut household costs. Looking to compare electricity rates is always a really good idea, as it will help to reduce your monthly costs, and you might even be able to get a fixed rate for a little while too. When you know what costs to expect for a while, then it can be really helpful to set your budget.
Other ways to cut costs are to go through your bank statements with a fine-tooth comb. There can be some direct debits that you have not canceled but are still being charged for, as well as showing you where your big expenditures come from. If you notice that you spend a lot at a certain place, for instance, then it could be best to avoid that place!
Overall, switching to a new utility provider or internet company may reduce your monthly expenditure.
Address Your Debts
If you have outstanding debts, now is a good time to address them. When people face financial hardship, they’re often tempted by dubious companies who offer to help. Before working with any debt organizations, be sure to check that they’re reputable. Asking questions, like is DTSS legit or can I trust this organization, will stand you in good stead. Remember – you can always approach your creditor directly if you need to.
Check Whether You’re Eligible for Help
Due to the economic impact of coronavirus, the government and local organizations are issuing financial support. You may qualify for a grant, subsidy, or no-interest loan, so be sure to check your eligibility. In addition to this, talk to creditors about payment holidays, interest freezing, and the removal of charges. This can make it easier to manage your finances when things are a little tough.
Start a Side Hustle
If you need to boost your income in the midst of the COVID-19 pandemic, a side hustle could be a good way to do it. Whether you’ve lost your current job or you simply an extra source of revenue, a side hustle can be a cost-effective and fun way to achieve your financial goals. When you use your existing skills and working on a freelance basis, you’ll be surprised at how much you can earn.
Dealing with Economic Uncertainty
The COVID-19 outbreak has affected every industry, which means businesses are still dealing with the economic impact of the pandemic. When we don’t know exactly how long the outbreak will go on for or how businesses will bounce back, it can be tough to make financial plans. However, by being proactive, cutting costs where you can, and generating extra revenue, you can successfully manage your money and prepare for a bright financial future.