How To Handle Your Finances During COVID-19
The coronavirus pandemic has ushered in an age of immense challenges for all of society. Whether you look at the healthcare sector, the mental wellbeing of individuals, the legal system, the economy or hospitality, you will find chaos everywhere. Unfortunately, it appears that the ramifications of this crisis will be dealt with by generations to come, in more ways than one.
If you have struggled personally with finance during the pandemic, you aren’t alone. Over 40 million people in the US alone have lost their jobs due to economic cutbacks and businesses going under during the pandemic. Financial aid has been a topic of much political discussion, and with the inauguration of a new president, many people feel hopeful for the future. However, there are still hills yet to climb for individuals who are struggling to make ends meet.
In this blog you will find tips on how to handle financial problems during COVID-19. Let’s get started!
Speak With A Financial Advisor
The first step you should take is to speak with a financial advisor. You can hire financial advisors privately, but of course, this will cost you a fee. Some advisors offer advice pro bono, but if you can’t find any of these available, you can speak with a citizens’ advice board that will offer free advice about your situation. With these experts you can discuss your financial situation, any responsibilities you might have such as children or a mortgage, and they can help you figure out a plan to manage your money during this time.
Financial advisors can also provide insights into how you can invest your money. If you are doing fine financially but you want to diversify your portfolio, seeking advice from an expert will allow you to safely invest your money in the right places at the moment.
Map Your Expenditure & List Your Priorities
If you are looking for ways to handle your finances from home, there are lots of techniques that are recommended by professional financial advisors and accountants. One of the most popular techniques is to list your priorities when it comes to your expenditure. If you don’t keep a close record of everything you spend money on, you could be hemorrhaging money left, right and center without realizing it.
Here’s how you can map your expenditure.
- Check your subscriptions. Remember subscribing to that online magazine you never read? No, you probably don’t. While these expenditures are very small, in the grand scheme of things, your subscriptions probably add up to a few hundred dollars per year.
- Make a spreadsheet. Spreadsheets are apparently a thing of the past, but they can be mightily useful when it comes to mapping your expenditure. Separating your spends into categories such as travel, food, bills and non-essentials like restaurant meals or expensive clothing, can help you figure out where you can cut down if possible.
Now that you’ve accurately mapped your expenditure, it’s time to list your priorities.
Here are some tips on how to get this right!
- Firstly, list the things you absolutely need to spend money on. This is essentials such as childcare, your house, your car, food and other bills. You can easily do this even on a sheet of paper! This will indicate how much money you absolutely need to have coming in each month. When applying for jobs or collecting unemployment, knowing your essential outgoings is important.
- Then, list the most important non-essentials for you. This could be your gym membership, your social spending, classes that you take to further your career, or perhaps cosmetics. Whatever it is that makes your life fun and exciting, this should go in your next priorities.
- Lastly, list the things you don’t need, but enjoy spending money on from time to time. These are the least important expenditures – the things you could get rid of most easily.
Once you have done this, you will be able to make cuts where possible. Listing these things helps to organize your finances in a structured way, helping you to whittle down your expenditure and save money in these trying times.
Apply For Jobs In The Right Industries
If you are out of a job right now, you need to know where to look when it comes to getting hired. Even if you are trained in one specific industry, you could get a job to make ends meet in an industry that is hiring right now.
Here are a few industries that are recruiting in mass numbers.
- Delivery driving and services. Seeing as most of us are shopping online right now, delivery driving companies are hiring people en masse.
- Teaching online. If you are an expert in something – and it really could be anything! – you can tutor your skills online for a reasonable fee. Plus, this allows you to work from home, which is a valuable job asset at the moment.
If you look in the right places, there are plenty of jobs available for savvy individuals who are trying to keep going at this difficult time.
Consider Short-Term Financial Loans
Lastly, it may be worth considering financial loans. Although debt is the last thing anybody wants, sometimes loans are a good way to help you out in the short term. You need to do extensive research on the different types of loans possible, such as guarantor loans from Buddy Loans. These types of loans are helpful if you have a job starting soon, and need to pay bills in the meantime before the first paycheck comes in. Make sure to read all the terms and conditions before you apply.
If you are struggling with money during the COVID-19 pandemic, use this blog as a guide for organizing your finances at this time. Make sure to speak with a professional before making any big financial decisions, such as taking out a loan or investing in property or stocks. While the pandemic will be over someday, these organizational tips will be useful forever!
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