The lockdown may have lifted in many parts of the world, but that doesn’t mean that life, or your finances, have gone back to normal. It may take time to recover, whether your earnings took a hit, or you lost your job entirely.
With the future looking bleak, you may be unsure about how you can manage your finances. Is there money management advice that will keep you safe?
While there are no guarantees in these unprecedented times, some age-old tips may bolster your finances today.
Make, Update, and Stick to Your Budget
Making a budget is one of the most important things you can do for your finances. But things may get complicated when it comes time to sticking to it as your circumstances change.
In times like these, your income may fluctuate drastically with no warning, which means you’ll have to check-in with your budget more often than usual. You can’t make a budget and expect it to stay up to date without some TLC, so make adjustments as things change.
A regular review of your budget will also help spot unnecessary spending or recurring expenses that you make without much thought, like subscriptions, gym memberships, or online shopping. These are prime opportunities to save if you can manage to eliminate these spending habits.
Still Commit to an Emergency Fund
A well-balanced budget will include emergency savings, especially during difficult financial times. If you haven’t already tapped into them, you may have to in the future, so it’s best to keep saving whenever you can.
A standard rule of thumb is to build up as much as six months’ worth of living expenses. This goal helps you out if you’re out of work or facing several unexpected emergency bills at once.
In tough cases, you may contact online lenders such as MoneyKey for help in the form of installment loans online. If your emergency fund falls flat of what you need to cover an unexpected emergency expense, you may research online installment loans at MoneyKey.com.
Weighing your options carefully before you make a decision is a fantastic idea, with or without an ongoing pandemic. This measured decision-making process will help you decide if an installment loan is the right solution to your financial emergency.
Take Control Where You Can
When your finances are at the mercy of public health and larger economic factors, it’s easy to feel like nothing you do matters. But there’s power in the small decisions you make throughout the day. Focusing on them can help you feel more in control and accomplished.
One small task you can do is contacting the people and organizations you owe — from utility providers and credit card companies to installment loan lenders and friends.
Letting them know you’re in a tough situation will always trump keeping quiet. It alerts them to a shared problem. After all, if you can’t pay, they won’t receive their money on time. They’ll probably be open to working toward a shared solution, like a financing plan.
There’s never been a situation quite like this before, so it’s normal to feel concerned about the future. Try to channel that worry into actionable steps you can take with your finances right now. These simple tips may come in handy soon.