We are already starting to face some economic consequences, but what is less evident is the financial-induced pressure caused by the ambiguity. Most of the countries are facing the complexity of an imposed lock down due to Covid-19. However, this also allows us to discover ways to maintain our finances better. Managing money and paying bills are very important at certain conditions, but it becomes very much essential during a crisis like a coronavirus pandemic. It’s a sure thing to get in financial stress, but worrying much can affect both your mental health and well-being.
Here are a few suggestions about how you can manage your expenses to stay financially and mentally flexible in this crisis.
- Apply the great model of 50/30/20 rule for your monthly budget.
- 50% of your salary or savings should be spent on necessary things such as Food, Rent, Children’s education, various EMIs, etc.
- 30% of your salary or savings should spend on your wants, such as Travel, Petrol charges, Hotels, Mobile Bills, etc.
- 20% of your salary or savings should spend on your safe investments, such as Loans, Equity, Debt, Mutual funds that can be useful for the expenses like Hospital Bills due to Health Issues, Weddings.
2. As the ways of working and living have changed with time, new essentials would have appeared in your expenses like a new configuration laptop to work from home, more extra internet data with better bandwidth, video streaming services, gaming apps, etc.
3. You can re-allocate your spending by using the savings that you have generated to enhance it. That savings can help you lessen your debt and build an emergency fund, or top up your savings. If you are in a better financial position without any dues, use your savings to invest in future-proofing your finances or use to help a family member or a Friend.
4. Analyze the money you have to spend on your monthly or annual memberships of Gym, Social Clubs, Kitty Parties, Hangouts, etc. Give up these memberships if your attendance is less than 30% in a year.
5. Improve your skills that are relevant to your passion in-order-to make a side income. Depending upon a single source of income can be a great threat to your financial situation. If the crisis is restricting you from working, then depending upon a single source of income can be a threat to your financial condition. Build your skills and strengthen your knowledge and think about how you can leverage those skills to originate a side hustle, and diversify your income sources.
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