The coronavirus pandemic has sparked conversations across the globe, from how the virus has impacted the world’s economy to how consumers are turning to ecommerce for both essential and non-essential shopping. When you are navigating unprecedented times and uncertainty, one of the last things you want to worry about is your finances, so we have put together 5 tips to help you manage your cash throughout the pandemic.
1. Know The Difference Between Wants And Needs
It isn’t always easy to distinguish what is essential and what isn’t, especially if you are spending all your time at home. If you find that money is tight, it might be time to discuss which expenses are essentials or “needs”, and which are non-essentials or “wants”. It can be hard to talk yourself out of treats and while you don’t need to completely restrain yourself, it would be beneficial to reduce your non-essential spending.
2. Budget Properly
Budgeting may not be everyone’s cup of tea, but it is a great way to get a visualization on your income and expenses. You can look at how much you spend each day, week and month to build up an image of your finances. There are plenty of free budgeting apps and websites that you can use to help you assess all of your accounts, and this is a good first step to see where you can cut back.
3. Consider A Payday Loan
Payday loans are designed to help those are in need of quick access to cash for a short period of time, so if you find that your funds are low, this can be a great option. You will usually be given up to a month to pay back the amount the you borrow or the date of your next payday, so they are ideal if you have an unexpected emergency or find yourself strapped for cash during the pandemic.
4. Contribute To A Savings Account
One of the simplest ways to ensure that you have enough money at any given time, whether it’s during a pandemic or for an emergency, is to routinely contribute to a savings account. Take the money you save from limiting your non-essential spending and transfer it into a savings account. Over time, the money you add will gain interest and as an extra bonus, you will be training yourself to live on less money.
5. Maintain A High Credit Score
Staying on top of your credit score is important all year round, but it is essential during the pandemic. Maintaining a good score sets you up for financial security in the future and will allow you to purchase financial products much easier, such as credit cards. Some simple ways to maintain your score are to check you on the electoral roll, update your address on bills, make sure you pay your bills on time and allow for time between credit applications.
While the coronavirus pandemic has been completely unpredictable and unusual, by following these 5 tips, you can make sure that your finances are protected during this time and beyond.