In this article, we are going to cover some of the strategies you can employ towards managing your finances during the pandemic.
Financial Stability During the Pandemic
The pandemic has brought with a degree of financial uncertainty unprecedented in modern times. With many people losing their jobs, not just in Canada, but all over the world, the global economy has seen an incredible downturn. And it’s not just the average person suffering, but small businesses and various industries too.
And while health is supposed to be the top priority during a pandemic, financial stability often goes hand-in-hand with one’s quality of life. Now more than ever, it is important to find a way to live off what you have and what you get, and if possible, to make more.
1. The 50-30-20 rule is King.
This rule states that 50% of your income should go to basic necessities, 30% should go to personal wants and entertainment, and 20% towards financial endeavors, like saving, insurance, and paying off loans and debts.
Make sure every single cent of your money is allocated to a purpose, and be strict with this allocation, and always manage your priorities. Personal finance apps can help greatly in this regard.
2. Cut back on non-essential spending.
The days of going out with your friends to the cinema or a nearby restaurant to eat are gone (for now). As such, maybe you could allocate this part of your budget towards other important concerns. With all the free time you might have, it might do you well to pick up a new skill by watching instructional videos on YouTube.
And if you’ve relied solely on buying pre-made food from local restaurants, it might save you money and the risk of infection if you learned to cook.
3. Don’t hoard.
Many people think that hoarding supplies is one of the best ways to deal with any disaster. That couldn’t be further from the truth, especially when it comes to medical supplies in a pandemic.
A small percentage of the population hoarding most of the medical supplies only means that the disease is more likely to spread to more people. Hoarding removes public access to essential medical and other goods that could prevent the transmission of the virus. Do not panic buy.
4. Build a safety net.
If you haven’t started building an emergency fund, it is never too late. Devote even a small percentage of your income for emergencies. Even with various government initiatives in place to help citizens in times of disaster, there is no predicting the financial crash that may happen should you or your loved ones get infected.
No matter how small your income is, or how small your monthly contribution to your savings fund, make sure never to neglect it.
5. Create alternative revenue streams.
The digital marketplace has expanded more in these last few months of the pandemic than it ever has before, and as such, it might be time to pivot your business towards online sales and deliveries. While the global economy overall is down, the iron is hot for online businesses, now is the time to strike.
If you happen to be an employee whose job has pivoted to work from home, it might also be worth considering part-time, freelance, project-based work online. After all, every little bit is valuable in this trying time. Even with these circumstances, the capacity for online work has only increased, so make sure not to miss this opportunity.
With multiple incomes, it might be harder to manage both your taxes and budget, so make sure to have a personal finance app ready.
Times are hard, but they can be easier with a modicum of financial stability. And while everyone’s circumstances are different, it is still important to try as much as possible to make the best out of the situation.
And if you need a fantastic personal finance app to manage your money, why not check us at Chango out. We have what it takes to bring you to financial stability.