Staying financially stable during coronavirus

During the current coronavirus crisis, keeping track of your finances is essential. This is a time that can have a significant effect on your financial well-being. Such an event has had a very abrupt effect on economies around the world, not to mention international trade. Some may even worry about a possible recession that may follow past the actual crisis itself. This is why preparing for any possible outcome is of utmost significance at this time.

If the crisis has resulted in your unemployment, then this point stands doubly important. Not everyone is in the fortunate circumstance of being capable of working from home. It still remains unclear how and when employment around the world will recover past this time. Governments around the world are only now starting to take tentative steps towards opening their economies. In short, everything is uncertain as of now, so you will have to be extra careful with your finances. In the hopes of helping individuals uncertain on how to commence, we have assembled a list of helpful tips for remaining financially solvent during this time.

Keep some monetary reserves

This is the first and most obvious piece of advice we can offer you in the coronavirus period. If you desire to stay financially solvent, you will have to be careful on where you spend your money. There are several ways you can ensure that you stick to this. For one, you should try to write up a budget for yourself. If you write up a budget, you can ensure you keep track of where all your spending goes. That is if you do it right, of course. Try to identify your spending habits. You should be able to notice if you are spending more than is necessary on a particular item. This makes identifying and eliminating overspending easy.

For two, try to put some money aside in a savings account and only keep what you deem necessary. Most savings account put some restrictions on withdrawals so that you do not withdraw your money too easily. By doing this, you can make sure that there is always some money put aside for you. You will also get the added bonus of some added interest to your account, increasing your savings. The higher the interest, the better. Of course, you should check the particular savings account scheme. Try to avoid accounts requiring withdrawal fees, as this will quite clearly reduce your spending power.

If you really are having trouble controlling your spending, then there are some services that can help you. For example, ‘You Need a Budget’ is an app that, for a small monthly fee, gives excellent advice to its clients to control their spending.

Do not take out loans

Using credit cards and asking help from lenders is a decisively bad idea in this situation. It should really be your very last resort. Many people are going to be looking into loans right now, as coronavirus affects everybody. It seems quite likely during times like these that loan sharks will want to take advantage of the situation. Additionally, the last thing you need is more expenses, especially if you do not have a source of income. If you find yourself lacking funds, try to find alternate routes, like selling your assets, for example.

Consider your assets

If worst comes to worst and you have little money left, selling your assets may become necessary. Try to list all of the valuable assets you currently own and if you can afford departing with them. This may be jewelry, investments, stocks, even your own home. Unfortunately, these may be your only options at some point.

Handling the market

You may currently be invested in the market through stocks, a 401(k), or any other investment. If you are, it is not absolutely necessary you sell off all these assets at once. If the market is experiencing especially dire volatility, you should keep a close eye on your assets to see how far they fall. Try to keep invested in an asset if you can. It is not yet a given that the markets will suffer on all sides.

Unemployment during coronavirus

Even if you currently have the comfort of working from home, unemployment is still a possibility. The effect of coronavirus on the worlds’ economies could mean a recession. This could result in many people losing their jobs in the long run. Additionally, trying to find a new job may remain difficult for many people considering the circumstances. So, you may have to consider your next plausible place of employment. Think of what skills you have, where you can transfer over to if the time comes. In fact, if possible, employ those skills at your current place of work. This crisis could offer new opportunities you could not have imagined beforehand. You should try to make yourself stand out as much as possible during this time to ensure you are not let go.

You should also look into government aid if it is available. It is quite likely that benefits will be available where you live. Many countries around the world currently have no option but to pay a large portion of their citizens benefits. If they do not, the results could be even more disastrous. Therefore, you should check if you qualify for benefits and keep in mind how to apply should the time come.

Travel booked during coronavirus

You may still have bookings for flights in the coming months. No one knows for certain how long this situation will last. However, do not worry too much on this account. Many airlines have been understanding during this time. They, of course, know that their customers may not attend their flights for reasons out of their control. In fact, it is quite possible the flight will not even take place. As such, many airlines are quite willingly offering refunds or re-bookings. You should, however, make sure that you contact them. They themselves will be quite busy with all the customer requests.

If you need to book a new flight, try to put it off as long as you can. The flights they make are likely to change as the situation changes, so only book if absolutely necessary. If you can, look into travel insurance or tickets that offer full refunds.