5 Tips to Stay Financially Healthy during the Pandemic

How to Stay Financially Stable during the Global Pandemic

The global coronavirus pandemic has caused many people to lose their jobs. During these difficult times, people should use their emergency savings to stay financially stable and weather the crisis.

This, however, isn’t always the case. A news report from 9News revealed that 61 percent of Aussies weren’t saving money during the coronavirus crisis. This meant that they won’t have anything to fall back on if they experience financial hardship.

If you’re one of the fortunate people who are still employed during the pandemic, you’ll need to make sure that you’re taking steps to stay financially healthy. The last thing you want to happen in your life is to lose your job and have nothing to pay off your debt and other expenses.

Here are a few strategies to help you handle your finances effectively during these times of uncertainty:

Never save or set aside money blindly. Create financial goals and take steps to achieve them. If you’re planning to purchase your first house after the pandemic, for instance, you’ll want to make sure that you set a specific down payment goal before meeting with a professional mortgage broker.

When coming up with financial goals, take note of these tips:

If you have free time, use it to bump up your take-home pay. You could use that extra cash to further increase your savings, pay off your daily expenses, reduce your debt if you have one, increase your emergency fund or invest it in profitable assets.

When looking for ways to earn more money, take a good look at your skills and talents to find a side hustle that you’ll enjoy. If you like cleaning, for instance, you could offer your services as a house cleaner. Alternatively, you could wash high-profile cars or other vehicles and charge a reasonable fee. Finding a side project you’ll enjoy doing will make it seem more like a hobby and less like work.

Spending your money wisely will help your hard-earned cash go further, especially during the pandemic. If your spending habits have remained the same for several months, allot time to re-evaluate them by going over your purchases.

Here are a few ways to help you begin cutting down your expenses:

Forgetting a payment can result in late fees and penalties – expenses that will drain the funds in your bank account. What’s worse, late fees are a sure-fire way to ruin your credit standing. When your credit score dips, you risk paying higher interest charges on any future borrowing.

So, make the most of automatic payment options for credit card bills, loans and utilities. Some companies may even provide a discount if you set up a recurring payment.

If the COVID-19 pandemic has made you feeling overwhelmed, consider reaching out to a professional who can help you keep your personal finances on track.

Achieving financial stability is doable even during these challenging times. Apply these personal finance tips in your life, so you can weather the crisis and work toward a better future for yourself.