The deadly virus which broke out as a health crisis across the world has now become a global economic issue. Thousands of people in countries like Italy, USA, China, Germany, Spain and many more in the list have lost lives. Many have also given away their jobs in the past few weeks for the sake of maintaining social distance at the workplace. Right now people are horrified about the risk that COVID-19 may continue to spread till the world ends. The worst part is that nobody knows that after how long things will get right and easy.
Amidst this uncertainty, it is important that we make some changes in our financial budget and expenditure, so that we can settle our survival at least for the next few months. Federal government has already made some remedies to promote financial aid. However, to be at the safer side, you can reinforce your financial security right now for the upcoming weeks. Below are some of the tips you may consider.
Saving Money During COVID-19 Outbreak
Frame an emergency investment
People who are still able to continue with their work should start saving every penny possible. This will keep you prepared for situations when your company may also face emergency lockdown due to this pandemic. The foremost tip is to keep sufficient cash on hand to meet the expenses of at least next few months. However, considering the current situation, it is best if you can keep six months’ budget on hand. It may happen that the sinking economic consequence will globally outlive the virus outbreak itself.
At this current condition, saving money won’t be a big deal as it would be in the normal days. With movie theaters to sports arenas, restaurants to bars, etc., going through the total shutdown, or ban to maintain safety reasons, you won’t have much scope to spend money on anything other than buying regular groceries. But, if you spend on buying extra food items or sanitizers, etc. then probably you may run out of cash here also.
In case you are hoping for a tax refund, it may help you to quick-start saving your emergency fund. Make sure to start filing your taxes as quickly as you can. Government has extended its timelines till 15th July. So, make use of this time to submit your tax return. But, if you make it faster, you get the refund faster. Then collect all the returns into your savings account so that you can easily get your money out of it when required.
Remake Your Cost And Expenses
Slash your monthly expenses at least for the upcoming months. It is true that you may still require to spend on food, insurance, groceries, and other home cleaning accessories, and also on conveyance if you are still working from office or, not ordered to seek self quarantine.
Also, you may have thought of indulging in some extras, just for entertainment purposes while you are staying home for the next few weeks. But, if you are spending on things that seem to be wasting money, then consider not doing until life gets back to usual. Store each and every penny possible in your emergency fund.
If any of you have lost your job due to the COVID-19 emergency lockdown, you are free to apply for re-employment. This will help you not to draw out your savings, and be a better alternative in this crisis. Simply, discuss your issue with the state government to know more in this regard before applying the above. Also, learn how much money you can expect through this application.
If you are struggling much and cannot properly meet your financial requirements, try for a personal loan to support you for the time being. Make sure not to get indulged into credit card debt issues or payday loans as much as possible. Else, this may add long term stress on your financial health as you may have to clear the debt of those credit cards at higher interest rates.
Refinance Your Loans
The Corona outbreak has directly affected the Federal Reserve, which had to cut down the interest rates almost close to zero. That means the rate of interest will be very low on loans.
So, here is your scope to refinance your loans and secure your fund for a greater time period. Doing this may possibly decrease your payments in the short time period, particularly if the term of loan is further extended. This will also make it easier for you to clear your monthly bills during this time of crisis.
If you are already going through a phase where you lost your primary source of earning, then refinancing the loan might be hard for you because lenders will often want to know about your regular income source before approving the loan.
Well, no need to worry. You can still reach out to a bank staff and consult your hardship assistance options. Then, you can eventually start refinancing the loan as soon as you get your job back, provided that the rate of interest is still low than the rate imposed on your current loan.
Right now and every moment, we are all trying to overcome this current pandemic situation by looking for the possible remedy (if any). We do not know how and where this outbreak will come to an end. What we can do is together stand against it and try keeping us self quarantined at ,east for the time being. We should maintain strict hygiene and distance even from our family members (if required).
We need to cooperate with the government and lastly, make a proper financial settlement at least for the upcoming time which is going to be quite crucial. So, if you are still sitting empty without doing the needful to secure your living through these hardest months of the year, now is the time.