The pandemic has affected and is continuously affecting household finances. Creating and having a plan on how to prioritize spending and using resources proficiently will be the key to your financial stability.
- Prioritizing Expenses
Prioritize where you would like your money to go. Usually, this includes food, housing and utilities, communications and transportation, and some clothing. Households should always consider and even reconsider their priorities during this time of the pandemic. It is important to come into a clearer focus especially in times of crisis. You can assess and ask yourself if your money is going into the most important priorities in your life.
- Household savings
Even with the pandemic, households should or continue to contribute to their savings funds. Do not go online and stock up lots of hand sanitizer or you’re worried that you might run out of toilet paper. Instead, follow the guidelines and remain contributing regularly to your emergency funds.
- Budgeting for COVID-19 direct impacts
Most works have retained and will retain their income and current salaries. However, there are still lots of people unemployed in many countries. Pandemic has made others unemployed. It may be because of their field of work that doesn’t follow the new normal protocols. As seen in social media and news, crazed runs on everything from toilet paper to hand sanitizer. For those who were not in the financial position to buy in bulk, this left them with few good options. You would do well to remember that emergency savings are for times of no income. Unemployment and missing work are periods where you don’t have income.
As the cases of infected people are arising, having plans for spending your resources wisely will benefit you today and soon. If you don’t have your spending plan yet, now is the best time to put one together. A budget is simply a plan where you would like your money to go. It is preparation for potential health issues and medical expenses. You may have a diversion wherein you’re dining out, going to the movies, and vacations will now go to an emergency savings fund.
- COVID-19and Scams
Everyone is facing not just a health crisis but also a financial crisis. People from different places are looking for a way to have their income as many of them are now unemployed. As coronavirus continuously affects individuals’ health, there might be some who will offer to you certain cures or vaccinations telling you that it will cure you of a certain disease especially Coronavirus disease. Beware of scammers and don’t ever lend your money to others. Think of it a thousand times before making a decision.
Avoid becoming a victim of unethical activities. If some will offer to sell emergency equipment, check the authenticity of the product, and research the background of the one who is selling it to you. The emergency equipment they are selling will likely not differ from the things you have in your bathroom. Fear and panic will somehow make you do these things by buying the things you think you needed the most even with the excessive pricing. Fear leads to negative choices and damaging consequences. Be wise enough especially these hard times when our finances are affected.