COVID-19 / What Has A Pandemic Taught Us Financially?
When the outbreak of COVID-19 escalated as a pandemic, we often relate it to health and social tips like "washing and sanitising", "wearing a mask whenever needed", "social distancing" etc.
However, as the pandemic prolongs, it is proven that there are more crises shall arise, be it individually, within a community or neighbourhood, a nation or even the globe.
Realise and prepare for financial crisis
It’s a wake-up call for all of us. This pandemic has reminded us of how unpredictable life can be, and what's more when the crisis is compounded by excruciating financial catastrophe.
Crisis may strike anytime without any alarm, but there are precautionary steps you can practise to stave off disaster. With the right financial practices, you can turn a potential financial tragedy into a merely temporary setback. It helps you to bounce back relatively quicker and in a more positive manner when the storm has eventually subsided.
1.Maximize your liquid savings
In a prolonged crisis where predictable and unpredictable impacts are foreseeable, cash account or short term investments will be of much help. These liquid savings and investments give you flexibility to withdraw funds at any time without incurring a significant financial loss. High-risk investments are not recommended unless there's sufficient sum of amount or cash in liquid accounts to last for at least six months or longer.
2. Make budget and keep track on monthly basis
It will be helpful to keep track of your monthly expenditure. By keeping a record, you'll be able to formulate an average sum of money you earn and spend every month. This is important to help you find out how much fund you need to sustain your livelihood during an emergency outbreak.
Tips: Install mobile app - Money Manager (Download: Google Play, AppStore)
3. Scrutinise your bills
Live a life like a minimalist at times. Let's be frank: We live on basic 'needs' and sometimes, on unnecessary 'wants'. If you have always been struggling to get by while trying to maintain a more luxurious lifestyle, it is a ridiculous burden you put on your financial difficulty. Try to look into your bills and credit card statements, you might have been spending money you don't have to just to keep up with the Joneses. That's totally unnecessary during a crisis. The golden rule here is,
1. Minimise unnecessary bills
2. Pay on time - Credit cards, maintenance fee etc, to avoid late payment charges and interest.
4. Look for ways to earn extra cash
A lockdown at home doesn't always mean we're cut off from learning opportunities. Instead, it's a fitting period of time to learn and acquire new skills. These skills may enhance your existing expertise or even elevate it to another milestone.
TIPS: Create an online platform to sell your products, it could be home baking, sewing, or online education system.
An ounce of prevention is worth a pound of cure.
A little precaution before a crisis occurs is the key determiner to prevail over a tragedy. Practise whatever necessary to guard ourselves against unforeseen incidents, even on days when we feel safe and comfortable.