Managing finances during Codvid-19 Crisis.
The spread of COVID-19 has changed the way people interact with each other affecting our financial and professional life. The COVID-19 pandemic has left several employees with reduced hours or no work. Managing money is important at all times, however during this crisis, having the financial resources to help you go through the pandemic is of key importance. One way of ensuring you have the financial resources to go through the pandemic is by having a financial plan that works with your situation.
The COVID-19 crisis has brought significant changes to professional and social life. A number of employees have been working from home or given the opportunity to take some days off thereby making some savings on transportation cost, work lunches and work clothes. Discretionary spending is also expected to decrease as regular outings with friends, parties and funerals have reduced to the minimum. Take stock of all the savings due to changes in the lifestyle in addition to items you no longer buy due to the COVID-19 pandemic.
If your income has been negatively impacted by the crisis, you could use the savings generated to supplement it. Alternatively you can build an emergency fund with the savings. You can also use some of the savings to help family members or invest in acquiring new skills.
Acquiring new skills is one way to future-proof your finances. Perform an analysis of your current skills to determine if your current skill set shall continue to be in demand in the medium to long term. You can start by enrolling in programs to improve your skills or acquire new skills. A number of institutions are offering online training programs at a fraction of their actual cost. This is a great way to improve your skills and remain relevant as the job market shall remain competitive after the crisis.
Relying on a single source of income can be a great threat to your financial survival. With the uncertainties brought about as a results of the CODVID-19, it is important now than ever to leverage your skills and knowledge for additional streams of income. You can also partner an established entity and provide support with your skills to grow the entity and earn some income as a results.
After a crisis, the definition of normal is likely to change. It is important to prepare yourself financially for what the new normal will be.