While you ensure you’re staying physically healthy during the COVID-19 pandemic, it’s also important to remain financially healthy. As the current situation continues to wreak havoc around the world, businesses are being forced to close, leaving millions of people without a job. In a recent survey by Experian, nearly two-thirds of Americans said they’ve become more worried about their finances since the crisis began.
To help you navigate the ferocious storm, we have some helpful pointers to help you stay financially afloat.
Have (more than) enough emergency savings
In the UK, one-fifth of employees have no emergency savings. Those people who managed to save said that they have half a year’s worth of salary set aside. The previous detail tells that some people aren’t prepared enough for any emergency. An emergency fund covers you and your family in cases of unexpected financial blows, like losing a job because of the pandemic.
If you’re one of the many people who don’t have adequate emergency savings, start building one right now. According to the nerdwallet.com, you should save at least six months’ worth of expenses. Now, where can you put your emergency fund? You have two options:
- In a savings account with easy access – As emergencies can strike at any time, having quick access to your finances is vital. However, the account should be separate from the bank account you use daily so that you won’t be lured into withdrawing money from your reserves.
- In a high-yield savings account – As the name suggests, your money will earn a high-interest rate. It will provide more than the usual account.
If you’re unsure as to how you should put money in your emergency savings account, you can always get in touch with your financial planning services provider to learn how.
Consider starting a second job
According to John McKee, author of Career Wisdom and founder of BusinessSuccessCoach.net, many professionals nowadays are looking for a second job as a fallback, because they feel their main job isn’t completely safe. Indeed, in a time when millions of people are losing jobs, having a second job will give you some sort of cushion. Many companies are looking for freelance writers, copyeditors, web designers, and video editors. You have to be more persistent in your search.
Contact your lenders
If you’re starting to struggle financially, don’t hesitate to contact your bank or creditors. Let them know what your situation is. Be honest about what’s happening. During this unprecedented time, many companies are looking to help their customers as much as possible. Chances are, they may have alternative payment options to help you. For instance, it may be a reduction in payments or even loan extensions. Such opportunities can help you adjust, even a little bit, during this pandemic.
Many people, even those who were financially comfortable, now struggle to pay their bills because of what’s happening. That shows the importance of careful financial planning to avoid going under. Now, take a look at your situation and start planning accordingly.