The headlines of newspapers, TV shows or social media posts are pretty scary lately and we’re all worried about what’s happening now, but also about what’s going to happen in the future.
By trying to apply some basic principles, especially during this period, we may be less affected by this medical and economic crisis.
1. Take care of your health and your loved ones
Financial health cannot exist without physical health.
Staying in the hospital, for COVID-19 or any other disease, is not something you want especially now, and the financial resources will also be affected, directly and indirectly (both expenses and revenues).
2. Protect yourself from online scams
Do not disclose your personal/banking data if you are contacted by phone or e-mail. So don’t say passwords, PIN code, activation code for different financial products. The bank will never call or mail to ask for these things.
Attention also to phone calls informing you that a close relative is infected with the new virus and you are being asked for money for their treatment. Hospitals or medical centres, doctors, will never call for this.
So, do not comply with requests asking for money, for whatever reason (donations, treatments, protective masks) and inform yourself before you buy online or if you want to donate, look for reviews about the product and company, and the site from which you buy to be with the extension “https” – where “s” comes from the secure.
3. Compare products and services online before buying
According to Wiser.com, 96% of survey participants stated that they plan on comparing prices before making purchase decisions. So search for the best offer, online, on the internet and, only then buy online or offline (directly from the stores), be it products or services.
Also, read unbiased technical reviews before purchasing your must desired smartphone, a laptop or a smartwatch wearable device.
4. Avoid shopping out of boredom or loneliness
Apply “time test”, generally recommended for higher-value purchases, which apply very well to any shopping during this period.Postpone the purchase for the next day or the next days. If you don’t necessarily need it, or don’t want it as much, don’t buy it.
5. Make payments online. Buy online with home delivery
Utility bills, telephones, various subscriptions, daily shopping, all can be done online.
If you do not already have an account or bank card, you can open one online with just a few clicks on your mobile phone and the card is delivered at home.
Also, there are other technology companies like Revolut and Monese, which open online accounts (only by uploading a picture of the bulletin).
6. A shopping list is necessary
Go to the shops only when necessary and then with a shopping list well made, from which to deviate as little as possible. Don’t buy more than you need and pay attention to product expiration dates to avoid waste and unnecessary extra money.
7. Get rid of debt
Loans are also a problem when the economy is running out, but even more so when we prepare for a recession. Try to get rid of them as soon as possible, to regain your financial independence.
If you have money set aside for a vacation that you can no longer enjoy anytime soon, or to change the furniture in the house, or in a warehouse (other than the emergency fund) maybe you should review your priorities.
Use that money to prepay your loans, with the reduction of the credit period.
And if you have no choice and you have to resort to a solution to postpone the rates during this period. But try to resort to this extreme solution, for as short a period as possible. Because during this period interest is calculated, which will be paid in instalments, after the deferral period, in addition to the rates you already have.
8. Check your expenses and save
If you’re not used to making a monthly family budget, now is the ideal time to start “putting it on paper”. Only then can you figure out what the money goes on every month and what the weights are that will sink the boat and how you can balance it, getting rid of the less necessary expenses. Some expenses are very small, but being daily, eating large amounts of income.
Especially during this period, when you do not leave the house, you can save the money that went on transport, on various subscriptions to kindergarten, gym, on meals at the restaurant or coffee/beer drunk with friends, or even the pretzel ate daily on the way to the office or the pack of cigarettes smoked during the break.
Also, try to save money by reducing utility consumption or renegotiating your contracts and subscriptions.
9. Prepare financially to last in the long term
Save regularly (a percentage of your income automatically, as soon as you have earned your salary/income – on the principle of paying yourself – in an account, or an envelope, a rifle you don’t touch) and build, if you don’t already have, a reserve fund (covering 3 salaries or even 6 salaries, if you also have credit rates).
After the COVID-19 period, a troubled period of recession will follow in all economies, with income cuts, interest and cost increases and you need money at your fingertips to cover your basic expenses.
After the establishment of the reserve fund, try to have savings as diversified as possible, both liquid (or easily converted into cash): deposits in different currencies, government securities, investment funds, as well as in instruments that bring long-term returns: pension funds, the capital market.
10. Diversify your income
Whether you sell on the Internet goods that you no longer use, or you have bought and never used them, or you turn a hobby into an online business, during this period of stay more in the house you can find different ways to increase your income.
Or you can watch online courses on the Internet, read books, participate in webinars, develop yourself and increase your professional value. Or to be prepared for a professional conversion in times of crisis or recession to come.