Ways you can crisis-proof your finances during this pandemic

Coronavirus has forced most of us to change our lifestyles and work on our finances (Shutterstock)

Since the outbreak of Coronavirus, a lot of people have been forced to not only change their lifestyles but to also work on their finances. Most people have been forced to quit their jobs from unprecedented losses while those left standing are going through pay cuts and unfavourable working conditions. Generally, this is one of the biggest economic recessions the world has ever known.

While the world struggles to flatten the curve and return to normalcy, many financial lessons are being learnt along the way. The most basic one being the need to take charge of your finances. This pandemic has not only drained households but has left a good number in debt.

Here are some ways to help you crisis-proof your finances:

• Work with a budget

Working with a budget might seem like an easy task to handle but most households live one day at a time. A budget will help you track your spending and save money.

Take time out and look at your bank statements, calculate your household budget and you will need to review your budget at regular intervals to help you know exactly how much you spend.

Meals take up most of the money on house budgets and with the current situation where most people are staying home, your family members are probably eating double the times they should and more money is used on food. This is why a budget will help you track your spending and for meals, you can work with a weekly plan.

• Take charge of your debts

This pandemic has shuttered businesses and people have been forced to live on debt in order to supplement their living expenses. In order to get on top of your finances and clear debts, the first step is to take stock.

Most people procrastinate paying off debts and fending to bigger expense until they have calculated and budgeted daily expenses, when in the real sense you should make your loan payment and bigger payments first and budgeting with whatever is left thereafter.

The pandemic has been here a long time and it will even take longer for the economy to recover and life as we knew it may never be achieved but life has to move on.

You still have a future to work on and children to for. The more you procrastinate those payments the more your debt burden deepens.

This doesn’t mean you pay your debt once, it only means you need to make it a priority. Always look for saving opportunities to help in paying off your debt.

When your finances are not enough, you can always ask for help from friends and family (Shutterstock)

• Setup an emergency fund

The main reason why this pandemic hit as hard as it did was because most people weren’t prepared of the worst, some people still aren’t.

It is important to set up an emergency fund that can take you up to six months in case of a financial crisis or you lose your job.

It might seem like a daunting job, setting aside money every month waiting for the unknown but it actually helps in the long run.

These funds can actually help you cover rent and food expenses while you figure what’s next or how to handle the crisis you are currently facing.

• Cut costs

Another way to help you manage your finances is by cutting down on costs. Your household members should be able to understand that you can no longer do the same things or eat the same foods they are used to every day until things get better.

Budgeting alone will not help, you can as well budget with the same costs spending equally large amounts which will only mean you are saving no extra money.

This is the time to look out for sales and buy food and household items from the cheapest retailers. If it isn’t worth having it is not worth buying. Every chance you get right now should be channeled towards saving as much money as you can.

• Ask for help

Sometimes it doesn’t hurt to ask for help when the going gets tough. When your finances are not enough to carter for your expenses, you can ask for help from your other family members of friends to chip in.

If they can help you go for it instead of applying for loans or letting your household members go through unnecessary hardships.

You can as well let your children visit your other relatives to give you time to regroup and put your finances in order. Before going deep into debt or caving into a crisis, always ensure all your options are fully maximized. ?