Managing finance is a most important part of our daily life. During pandemic, it is becoming quite difficult to manage it properly. Everyone right now is concerning about one important thing i.e., how to manage your finance in pandemic.
ISSUES DURING PANDEMIC
The world is going through several issues like pandemic, economic crunch, several movements and many other issues. All those issues are making world more and more uncertain. From businesses to jobs, everything is uncertain right now. No one knows what will happen in the upcoming future.
All those issues and uncertainties are making direct impact on the regular budget of people. Everyone is uncertain about his current financial position because it is to direct impacting their financial budget. How to manage your finance in pandemic is a difficult as well as attentive task to do.
Hurdles in Managing Finance during Pandemic
There are various questions in people`s mind relating to managing your daily financial budget in difficult situations. E.g.: How to manage your money in crises? Crises includes pandemic, lock-down, any calamity, job or business loss etc. How to manage your finance in job loss or business loss? How we can manage your finance in a calamity? Answer to all those questions are same.
Here we will discuss the 10 ways to manage your money in pandemic situations or crises. You can also implement the ways to make your money management better in your daily routine. This writing will solve your majority of queries relating to managing financial budget all at once. So, there are 10 ways on how to manage your finance in pandemic or in normal daily routine:
10 Ways on How to Manage Your Finance in Pandemic
1. IDENTIFY ALL YOUR MONTHLY EXPENSES
First thing first, identify all your monthly expenses. Categorize it on the basis of amount, need, habits, urgency and which expense you can pay later. Make it simple and straight so that you can understand it properly. By categorizing the expenses you can differentiate between important and non-important expenses.
2. DISTINGUISH THE NECESSARY EXPENSES
Second step is to differentiate the necessary and unnecessary expenses. After taking into account the necessary expenses further differentiate it to expense which you can pay later. So, now all you left with necessary expenses with upfront payment condition. Those expenses are the ones you should really focus on.
3. IDENTIFY YOUR AVAILABLE MONEY
Third step is to identify your available money in the form of income, salary and your savings. It means that you have to identify all your financial resources through which you earn money. It may be fixed in the form of remuneration or fluctuating in the form of business income.It may also be your savings if you don`t have any incoming income source at present.
4. AVOID UNNECESSARY EXPENSES
Fourth step is to avoid all the expenses which are not necessary or not urgent in nature or which you can pay later. Do not go for panic buying. Buy only necessary and urgent need stock. Avoid any buying for your entertainment purpose only which is irrelevant in your daily life otherwise.
5. MINIMIZE YOUR CURRENT EXPENSES
Next step is to minimize all your expenses as much as possible. Eat food at home. Avoid junk food or restaurant food. By minimizing your expenses you are actually maximizing your income and saving.
6. AVOID EXPENSIVE BRANDS
Brand has always associated with an extra cost to pay for a product. We can call that extra amount as premium amount. You can get the similar product without brand with lesser cost. Emphasize more on economical goods instead of expensive brand goods. It will definitely save a huge part of your income.
7. CANCEL THE SUBSCRIPTION OF UNWANTED SERVICES
Another important step is to cancel all the service subscriptions that you are not using in your daily routine. If you are unable to utilize any service due to any reason then cancel that subscription. You can also ask for refund for the amount already paid for the service. Although it`s all depends upon your service provider. Cancel all automated payment services from your payment applications.
8. CHECKOUT FINANCIAL AID FROM GOVERNMENT
At the time of any pandemic or crises, every government gives the several financial or non-financial aids to the public. Find-out such financial and non-financial assistance that government are providing to its citizens and claim the benefits you are entitled to. Avail the tax benefits, loan waivers, financial aids, goods on concessional rates and all the other benefits providing by the government, you are eligible for.
9. REMOVE UNNECESSARY CREDIT CARDS
Cancel the services of all credit cards that you are not using at present. Avoid the debt trap of big corporate. If you are only buying things which are of absolute need then you may not need credit card for your payments. But you can also efficiently utilize the credit card by buying thing you need and make payment for that in installments. But in that case also you would only need one credit card and not more than that.
10. DEPOSIT YOUR EXTRA MONEY
The final step is also very simple. Deposit your money in the reputed and trustworthy bank. Deposit in reputed and trustworthy banks because at the time of crises, small banks might fall due to adverse market conditions. But big and reputed banks can tackle the situation more effectively. By depositing your money, you can also earn some extra amount in the form of interest. But also keep some cash for any future uncertainty.
If you have some additional tips for managing finance then you can share your thoughts in comments.