How do I get hold of my Finances during times of uncertainty?

The spread of the Covid-19 pandemic has caused a gradual lockdown around the world. Many dimensions of our life are affected. On the positive side, we’ve experienced new joys, like B. Getting closer to our families, spending more time with them, learning new skills, and more. We have almost adapted to the changes that result from the life of the lock. However, with changes come unexpected growing uncertainties that you can find difficult to cope with. In situations like this, where you are also facing financial instability, you definitely need a plan of action. This article covers everything you can do to responsibly manage your finances for the coming quarters.

1. Control your spendings

To survive uncertain times, you should consider changing your spending habits. Maybe you like restaurants or weekend getaways, expensive equipment, or luxury items. However, given the need to maintain the liquidity of the funds for more than 6 months, the idea is to keep only what is necessary as a priority.

2. Increase savings

“Save money and it will save you.” You need to make sure you save enough money to protect your family in an emergency. You must set aside at least 20% of your monthly income each month as part of your savings. The savings will definitely help you when you need them most.

3. Avoid getting stuck in debt

You need to make sure you pay your loan and unpaid credit card bills on time. Credit cards are debt instruments that can be very expensive in terms of interest and other fees. If you don’t pay this debt on time, you could fall into a debt trap. Therefore, it is important that you pay your debts regularly and on time.

4. Invest in health insurance

Health insurance is the order of the day and we all know it. If you don’t have health insurance for you and your family, now is the time to do it. There are many providers who offer the best health insurance coverage to protect your family in the event of a medical emergency. If you can’t budget for expenses, you can opt for a health insurance loan that will help you break the amount down into smaller monthly payments.

5. Only borrow in an emergency

You can often rely on a personal loan or other debt to meet your financial needs. However, in uncertain times, avoid getting into a bigger pool of debt. Borrowing is recommended only in an emergency.

By following these simple habits, you can stabilize your finances during a crisis and ensure that you are prepared for times of disaster.