As people settle into lockdowns, the uncertainty that looms around the COVID-19 pandemic has left people worried about their finances. Governments have to extend state of emergency declaration and school closures. This means a lot of people are jobless for a while. Whether or not you have kept your job, this crisis compels you to review your finances so you can see where you can cut back expenses. Here are some tips for managing your finances during this tough time:
Know your Necessities
Food and shelter are people’s primary needs now and your budget must cover these necessities. If you lack funds to cover these needs, determine areas where you can cut back to free up some cash. This includes loan payments and foregoing savings to keep a roof over your head and feed your family.
Contact your Service Providers
Determine other bills that you have like car payments, insurance, utilities, telecoms, and property taxes and visit each provider’s website. The majority of businesses have updated information on how they can help clients through this time. Check with them if there is any flexible payment option they can offer.
Stop or Minimize Unnecessary Expenses
If you own two vehicles right now, chances are that they are sitting in the garage. Contact your insurance company and find out if you can decrease your payments by either removing or decreasing liability and collision or canceling insurance. Other expenses such as gym membership, meal delivery service, and magazine subscription can also be adjusted.
Decrease Loan Payments
If you are having difficulty making full payments on your loans, talk to your lender about your situation. Try to request for an alternative payment option. It is fine to make the minimum payments on your loan for the short term and just go back to the full debt repayments after the crisis dies down.