17/01/2022

Tannochbrae

Built Business Tough

BALANCE YOUR FINANCIAL POSITION DURING THE GLOBAL PANDEMIC

Tough times or crises emerge to test human’s capacity and to develop some good habits in people like global pandemic drastically killed numerous people but produced some good practices in people. Many people lost their jobs and to survive and meet their needs, they started finding alternative methods of earning money. The idea of personal loans was indubitably right to some who want to start their small business and they applied for online loans

However, people also reduced their additional expenses to avoid a shortage of money in difficult corona situations. The pandemic situation was awfully fearful, so in such a scenario running out of money is the most absurd thing. As still, the corona hasn’t diminished so following some good practices can help you in saving money and managing finances.

Emergency fund

Crises like COVID-19 and uncertain situations can emerge without giving warnings, hence you need to have a reasonable amount of emergency funds to deal with such instances. Because when such situations appear, people lose jobs which impacts the overall financial health of the entire house and negatively influences the household budget. 

Therefore, it is good practice to throw some amount in the emergency fund box. This will help you in paying for hospital bills if you fall ill or will support you during tough conditions. Financially literate people say that saving money for three to six months is something that will help in emergency times. So, If you haven’t started yet, develop this habit to avoid future monetary malfunctioning.

Confusion between essentials and non-essentials

During the first wave of the global pandemic, people struggled a lot mentally and they were unable to buy things from stores and shops because wherever they go, they find empty racks. No doubt, advancements, and facilities made it hard for us to know the real difference between essentials and non-essentials, we even regard non-essential things as extremely important. 

But, coronavirus is the time when people shrink their expenses so that they don’t lose the momentum and spend money only on fundamental and needed products. Knowledge of wants and needs will help you in saving money and will restrict you from purchasing non-essential products.

Keep cash at home

The inventions and progressions of the banking sector compelled people to put their saved money in banks and earn interest in it. This approach is not bad at all but the pandemic is so devastating that you must think about some alternate way, what if some of your family members fell ill on weekend and you have no cash. 

To cater to such situations, the good practice is to make some money out of the bank or your crisis fund and keep it at home to deal with uncertain future conditions. Make a rule that “crises fund” will not be spent anywhere else on non-essential things and instances like birthday or pizza parties.

Conclusion

Cutting down unnecessary and non-essential expenses during the global pandemic can help people in preserving some amount of cash, but it also requires you to abide by some sensible practices.