No matter which radio or TV station we watch, they all deal with the same topic, the coronavirus.
These are times when we all feel insecure. Every day we receive frightening news and are uncertain about what the future holds.
So it is important to know what you can do to be prepared and take the right steps, and how to take care of your finances during and after the Coronavirus Crisis.
1. Read The Right News
Information is important, but it is not necessary to follow every article about the corona virus on television, radio and social media.
It does not mean you should not inform yourself, rather on the contrary, you should keep up to date, but through established organisations and news channels.
Not all private messages and posts on social media and other networks are correct, and you don’t need to be more stressed than necessary.
You need solid and official information. Don’t spend your valuable time looking for negative news.
2. Focus On The Important Things
Yeah, it’s a new situation. And new situations require your full attention. So right now, you need to focus on what you can control and where to adjust.
- Can you work from your home office?
- Is part-time work for you?
- Is your job at risk?
- What help do you get if you lose your income?
- What about childcare?
- What preparations do you need to make if you fall ill?
- What shopping do you have to do?
- What preparations do you have to make (purchases, documents, etc.)?
These and other questions arise and you need to deal with them now.
Make a to-do list, and write down what you have to do. This list will not only help you to prepare, but it will also give you a realistic picture of your personal situation right now. Adjust to changes daily if needed.
3. Assess And Adjust Your Financial Situation
Special situations such as the current coronavirus can also be a stress test for our finances. And if we still stay at home and avoid social contacts, we can use this to adjust our finances to the situation.
If you haven’t done it yet, you know now is the time to work on a budget plan, and I wholeheartedly recommend it to you.
If you already have a budget plan, you may need to adjust it to your current situation. You may need to increase the rate of your emergency account, reduce non-essential expenses, or even cancel them. Do the math. Use the list of tasks you created earlier.
4. Top Up Your Emergency Account
Do you have an emergency account?
Many financial planners recommend that you have enough money for at least 3 months to cover your essential bills, such as mortgage, car payments, utilities and food.
This is not only important during a global crisis but also applies to any personal crisis or interruption in income flow.
But do not panic now if you have not saved enough to cover your expenses for 3 months.
Re-adjust your budget and start building a solid emergency account as soon as possible.
Even if you only set aside $60 a month ($15 a week), you can create a financial cushion.
And if you have the opportunity to save money, then do so. Plan this amount of savings at the beginning of the month and calculate it in your budget plan as an expense
5. Postpone Unnecessary Expenses
If you need to tighten your financial belt, it is a good decision to defer unnecessary expenses.
- Do you need to buy new clothes or can you use the clothes you bought last year?
- Do you really need your new smartphone now?
- Do you really go to the gym or can you work out at home?
- Travel, restaurants, cinema, what can you do without?
There is not a lot of opportunity for activities outside the home, but when we can go out again, maybe it is a good idea to think twice where we spend our money to b more prepared for what comes in the future.
If you know there is an expense coming later, which you cannot avoid, budget that amount in an extra savings account. Include it in your monthly budget plan.
6. Do As Much As Possible Online
Even if we are to stay at home, this does not mean that we are completely isolated from the outside world. We have great technology that allows us to do many things online.
Especially when it comes to your finances, you do not have to leave home to go to the bank. You can set up your online banking and make your payments, set up recurring bill payments, view your bank statements regularly and even daily or open an emergency account.
If you do not have online banking, I can recommend it. It makes it easier to manage your finances.
You can also check where you can save money when it comes to insurances and other subscriptions you might have or even sell some stuff:
- Compare your current contracts and find a way to save money
- Change your electricity supplier to always get the best tariff
- Order your natural beauty products with cash back sites
- Sell books, CDs and games online to turn unused items into money
7. Do Not Touch Your Investments
If you have already invested money on the stock market, either in the form of a savings plan or as a one-time investment, then leave it untouched in these turbulent times.
Prices on the world’s stock markets are on a downward trend. But if you sell now, you will have to take the losses. Do not be afraid and do not follow the herd!
If you have only invested the money that you do not need in the next 2 to 5 years, you can hold out. Because the stock markets will rise again and with it the value of your securities.
If you still have money to invest, now is a good time to buy, because many stocks have now become cheaper. So you can profit from the falling prices.
8. Stay Calm And Concentrate On Your Wellbeing
This is the most important point. You can plan your financial situation and keep it under control. But your health and your family are priceless. So protect yourself and your family from the corona virus.
Have a healthy, balanced diet. Prepare all your meals yourself, this will also save money. Be creative with left-overs. Respect the rules of hygiene and social contacts.
Use the opportunity to spend as much time as possible with your family, or do whatever you need to become healthy in case you have fallen ill.
There are great games, you can read, relax, listen to radio plays, do handicrafts, paint, look through old photos from your last vacation.
There are many enjoyable things you can do at home for free. Just be a bit creative.