The current pandemic has affected the lives of many around the globe. Many small businesses have been forced to shut down, causing unemployment to rise. At the same time, it has changed the financial situation of many across the world. If you are one of them then it is really important to take stock of where you are. You can then create a plan that could ensure your financial security not just now but also in the future as well.
There are different organizations that have taken the initiative to support those who have been hit hard by the COVID-19. If you know whom to ask for help, and how to document your situation then this could help you in managing your finances. Here are four steps that could allow you to take care of your finances during this difficult time.
1. See What Resources You Have Available
During this pandemic, many people have come together to help each other. Also, various programs have been introduced to help people stay healthy both financially and physically. So, the first thing you should do is to analyze the available resources and then take advantage of them. There are also a number of community resources that could aid you in bridging a temporary income gap. Some of those initiatives are as follows
- If you are a service member then you can get an interest-free loan from the military relief society. You can get in touch with Air Force Aid Society, Army Emergency Relief, or Navy-Marine Corps Relief for more information.
- You can apply for unemployment benefits. But before that, you would need to check with the Department of Labor to know if you qualify for it or not.
- There are different financial institutions and banks that are offering help to those affected. You can check with them to know how they are providing relief.
2. Talk With Your Creditors
If you think that you would not be able to meet your financial obligation then try contacting your creditor. You would be happy to know that some programs have been launched already to stop foreclosures and evictions. So, if you are a homeowner or renter, you can get in touch with your mortgage servicer or landowner and ask if they can help you in any way. When you conversate with the creditor, make sure to note details and write down the following points
- The time and date of your call
- The representative’s name you spoke with
- What offer you received
- How information will be presented to the credit bureaus
- The plan that you agreed on
After agreeing with a plan, you should get to composing a letter in which you should summarize the conversation that you had and then mail it to the creditor. You can start to monitor the monthly statements to see if you are getting any assistance from them.
3. Plan for Emergency
While you are still going through a crisis, it would be difficult to even consider saving for future emergencies. However, once things start to normalize, you shouldn’t wait to make a financial recovery plan. This will help you be fully prepared when and if the next emergency arises. After you are up on your feet, you would have to do whatever it takes to build a solid emergency fund. You can take smaller steps to develop a habit of saving.
4. Prioritize Your Spending
It is never a good idea to spend uselessly during a time of crisis such as the current pandemic. So, it is recommended to make a list of things according to your priority. This list would contain the necessary items that you need to get no matter what. It can be things like food, medicines, and utility. For me, getting a reliable internet connection was a priority. This is because I wanted to earn a few bucks by doing freelance work after I was laid off by the company. So, I checked different Spectrum offers before deciding on the package that best met my needs.
COVID-19 has taken its toll on almost everyone. Therefore, it is important that you take proper steps to safeguard your emotional and physical health. Also, don’t forget about your financial well-being! These four steps would surely help you manage your finances during the pandemic. Also, there is no harm in asking for assistance from someone you know during these trying times as people will be willing to help!