If there’s one thing we know all too well from the 2020 happenings is that global pandemics are real, and they can strike with no notice. No one is safe unless they plan to be primarily where finances are secure. This is why having the right financial tips to last through a pandemic is vital.
The first place to start is ensuring that I will still have a roof over my head and food to eat if a pandemic means less or no income. A financial cushion is otherwise known as an emergency fund. This is the money I keep aside for adverse events I have no control over, such as if my van insurance comes up and I need to renew so I can keep my business going. Starting to put up an emergency fund does not require the onset of dire circumstances. In fact, the sooner I start putting this money aside, the better.
I do not expect to spend as much as I do on regular days when an uncertain pandemic hits the country. Even if my spending habits were budget controlled, I need to tighten this budget to suit current circumstances. My account should reduce any excess costs, reduce the amount allocated for miscellaneous, and pay more attention to a healthy lifestyle.
Next, I will want to be keener on where every coin goes. A budget primarily helps with this, but to have an accurate account during a pandemic, I’ll need to seal every probable money loophole. It could be in too many bills due to poor energy use or watching how we store food to reduce waste.
There are people who thrive on others’ distress. We could call them pandemic scavengers. These are people who will use the current situation to con people. It could be through too good to be real deals or ghost sales.
If an advert seems like a scam, it is to me, so I do not think about it twice. Some terms can be too enticing, and if I dare believe in going through it, it would be the trap I could have avoided. Only use verified sources to shop online, ask family and friends for recommendations and only spend when you have to.
Remember that trip we planned but now cannot go on because of the pandemic? It’s time to ask for a refund for the deposits. Some companies notice the probability of customers pulling out and put in measures to ensure they don’t, as this could harm their cashflow. If this is the case, then I’ll have to reschedule the trip. Otherwise, if I can get a refund, so much better. The money could go to something I need more urgently.
This is the best time to make use of all discounts and sale options. If buying more will cost less, I’d rather go for that opportunity since we do not know how long the situation will last. However, I wouldn’t want to use the same policy for perishables as this could lead to more losses than gains.
Another way to shop smart is through buying raw materials and making DIYs for a few amenities. You never know, a hobby could turn into a business at a later time.
Although at the time, pandemics seem like they’ll last forever, I have to hold onto the hope that it is just for a time and everything will be much brighter soon. This will help me have the courage to restrain from overspending, remembering that this is only for a time. In any case, I could use the challenge to develop long-term smart financial skills.