When there is a crisis, things come into focus. You are better able to hone in your perspective on what is important. Managing your finances is also important, but it is especially imperative during stressful times. The Covid-19 pandemic has thrown a lot things into uncertainty. You can’t always control what will happen with your job or the global economy, but you can do your best to limit the negative impact on your life by doing your best to manage your finances. This can materialize in many different ways, but it has to be done in the best way that suits your current financial situation. If you need to, you may want to look into hiring a certified wealth manager to go over your finances and see how you can sort through them efficiently.
It may sound cliché but that’s why it is the most important thing you should be doing right now. You should be monitoring your spending not just because it is key to saving, you should be analyzing your habits because the world is so uncertain. We all need the money we can get during these times. The best thing you can do for yourself and for your family is to save money.
File for Benefits
If your ability to work has been affected by this pandemic, you can likely apply for some benefits. Whether it is unemployment, or a Jobseeker’s Allowance, you can get some help during this difficult time. If you have to take time off work, you can apply for Statutory Sick Pay (SSP). Another benefit you can apply for is Universal Credit, which you can also apply for if you are a member of the gig economy and you don’t have any work. Furthermore, Employment and Support Allowance is likely considerably less money than you’re used to, but you can always apply for its benefits.
Make a New Budget
It is always important to have a budget, but now that your situation has likely changed it is time to create a new budget. Not only do you need to create a new budget that considers the current financial standing, you need to create it with the instability of the world in mind. It is imperative to set aside money for an emergency fund.
With a new emergency fund in place, you will have a better idea of how much money you can spend in a given week. Tracking your expenses will reveal a lot, including how much you have been overspending and what you can cut back on. It is completely necessary to keep your finances in check, especially at a time when uncertainty is so high.
Check your Policies
It is important to always check your insurance policies and know what they cover. It is important to know whether they will replace some income or cover a mortgage payment if push comes to shove. You could have payment protection insurance, mortgage protection insurance, and accident and sickness insurance without even knowing it. While there is typically a minimum period of several months before the policy is paid out, you should always keep track of your insurance policies.
Paying Rent or a Mortgage
You should definitely be keeping track of where your province is at on rent. Many province are freezing rent payments. If you are having trouble paying rent, you can likely have it put off. According to the site MoneyPug, which is used to find payday loans, you shouldn’t take out a loan to pay your rent during this time. While it is a difficult time for renters and mortgagers alike, it is important to delay taking out a loan if possible. You should use credit before taking out a loan.
It is very important to simply stay updated and know how long this is going to last. We don’t know for sure, but if you keep up to date with the estimates on when we will return to normality and what your province is doing as far as rents. When you stay in the know, you can keep up and make sure that you are taking advantage of every possible resource.
One thing is for sure, this crisis will get a lot more people to pay attention to their income, spending, and overall finances. Not only is it easier for you if you know where your finances are at and can predict positive outcomes. Keep track of your money and you will be in a much better place.