It’s no secret that COVID-19 has brought in a new normal that many of us may have not been prepared for. With this new shift, many of our personal finances have been greatly impacted. Families may have to cut back on spending and shift their focus to more urgent needs such as food and household supplies.
Due to these changes, your previous financial budget may no longer suffice during these difficult times. However, there is still hope when it comes to managing your money during a crisis. These financial trips and strategies are set in place to help guide you through this new normal in hopes of still being able to navigate and push through as you find ways to manage your money during a crisis. Check them out below:
5 Ways to Manage Your Money During a Crisis
Refrain from making major purchases
With the start of this global pandemic, many of us had to instantly put our lives and plans on hold. If you were in the middle of making a big purchase such as buying a new home, purchasing a new car, or preparing for a vacation—now is the time to consider postponing those major purchases.
With the economy in its current state, it’s a bit unclear as to how long businesses may be impacted by this pandemic. Keeping that in mind, by delaying your major purchases, you will not only be able to save that money, but you will also strengthen your current finances by making sure you have money available for the future if you may need it.
Fight the urge of retail therapy
Trust us when we say, we know just how difficult it can be to fight the urge of retail therapy—especially when retail therapy has been known to increase one’s mood in the moment, however, it also leaves you with even less money than what you started with, and that’s the complete opposite of what you should be doing during a crisis.
Even if you aren’t in a critically binding financial situation, due to the current nature of the world around us, it’s important that we still practice frugality to prepare for what could potentially be ahead. Fight those temptations of scrolling on your favorite site and acting on deals and discounts you may see—you’ll be so thankful you did!
Utilize what you have first before purchasing more
Like many of us, we are all constantly making trips to the grocery store to pick up essentials. Before you decide to stock up on these necessities such as food, toilet paper and other household items, take an inventory of what you currently have at home. This is the time to utilize what you have first before you decide to go out and purchase more. This gesture not only helps you save during this time, but it also allows those that may not have those items at home to access them as well.
Evaluate other expenses
Now is the time to take a closer look at your personal finances. How do you spend your money each month? Where is majority of your money going? How can you decrease some of your spending habits? If your income has decreased due to the crisis, you may need to evaluate your expenses and cut back.
You want to make sure you’re being practical with your spending. Eliminate unnecessary subscriptions and services and take advantage of free trials and subscriptions instead. After deciding where your budget needs a cut, make those necessary changes, and realize you will have to make a sacrifice somewhere, but it won’t be forever.
Contribute to your savings
If you’re in the position where your income has not been greatly affected by the pandemic, take some time to contribute to your savings. Money you may have previously used on haircuts, travel and other leisure activities can instead be used to boost your savings.
If you found these five ways to manage your money during this time helpful, comment below and let us know! We’d love to hear from you!