How the global pandemic affects personal finances?

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It has been more than two years already since the world is facing COVID-19. Each country is finding its way to rise and live with the “new normal” to rebuild its economy that affected its people. However, no one is fully prepared for the global pandemic that only robs millions of lives but also affects the personal finances of every family due to modifications of priorities, savings, and work

Emergency Fund and New Priorities

Most of us may have savings, but not all have the right amount to serve as an emergency fund. Unlike savings that we usually set aside from a specific goal, an emergency fund should be at least three to six months’ worth of expenses that will be easy to access in medical emergencies, job loss, and other unplanned life events. In addition, it will help us avoid debt that can affect our finances in the future.

Aside from the emergency fund, with the global pandemic, more things are added to our priority list where we need to channel our budget. The first one is having healthcare insurance, and not all companies offer good insurance and extend it to the family members of their employees. Therefore, it may require the employee to shoulder extra expenses for their family. With healthcare is already on the table, we become more overprotected with ourselves and our family members. We make sure to find efficient protective gear such as face masks, sanitizers, and immunity-boosting supplements to ensure protection aside from the vaccine and other safety protocols.

Living on a Budget

With some modifications in the budget, we should know how to balance what is our priority. Although it is a fundamental methodology, keeping an eye on your accounts and tracking spending is very important. It includes making a grocery list and sticking with it, thinking several times before purchasing, finding a more affordable option, and having an expense limit. 

It will help us to have control of our expenses at the be same time be more practical in handling our budget. 

Being Aware of Other Expenses

We are not only expanding on our groceries and other shopping needs. We also call non-material expenses, which include monthly utility bills, loans, mortgages, and others. 

Being aware of those channels is very important, and it will help us be financially wise in handling them. In addition, with utilities being a consumption-based expense, we are becoming aware of our usage, especially with online calculators that help us predict our water and electric bills. Aside from that, it is crucial to be mindful of credit card usage and other loans that will put us in debt that will hurt our finances.

Be Financially Smart

It is essential to be more cautious, discerning, and intelligent in utilizing our expenses, from the simple budgeting methodology to sacrificing our wants and prioritizing what we need. Aside from that, it is essential to find other financial resources that will help us balance out what we are expending. It can be having extra work or investment. But for those who cannot afford to go to work sidelines. There are part-time online works that can genuinely help us meet both ends.

In the end, being equipped with proper knowledge in handling a budget properly will make you financially smart. To learn more on simple but effective budgeting tips, click here

 

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