This pandemic taught many important things in life that we take for granted many times in which managing money is the most important factor. This pandemic taught us that anytime could happen tomorrow, so you have to look at things for the long run. We all live in the illusion of EMIS and credit card bills; no one would worry about what might be happen if tomorrow there will be no source of income. I am not saying EMIS and credit card bills are bad; they actually boost the country’s economy, but we all should know how to locate our funds. For describing the same purpose, we have put some important points here that will guide you in the right direction.
What is Money Management?
According to investopedia.com money management definition refers to a process of budgeting, saving, investing, pending or otherwise overseeing the capital usage of an individual or group.
And also poor money management leads to a cycle of debt.
Money Management Tips For Covid-19 Pandemic
Review Your Expenses
Plan your all expenses by noting down on one spot and start with the necessities expenses you need to spend at any cost example, food, utilities, housing expenses, etc. On the other hand, there are expenses which can be changed at any time it also depends on the situation in these expenses you can make some big changes for balancing out your expenses for a situation like this. These expenses include clothing, entertainment, travel, etc.
Do Not Sell Your Assets in Panic
I saw many people sold out their assets at the lowest prices for the sake of the standard lifestyle. My suggestion to all is an adjustment for a short time is better for long-run circumstances. Liquidate your only if there is a real need like for health do not compromise in health otherwise is totally fine to restrict your demands for some times.
Always Maintain an Emergency Fund
In my Finance career, I have listened many times to the same thing from experts, and that always makes a habit of maintaining an emergency account which you can use in situations where there is no way of income in your house. You don’t have to ask for money from others because it will add up to your debts and you already don’t have money, so it will build up altogether and one day become your big problem.
The step that will help you maintain this account and is to trim your expenses on alternative months and put that trimmed amount into your emergency account.
Play Smart And Help Others Too
Take a smart step in terms of money spent to make a strategic monthly need list and work accordingly example, buy things in bulk, which will result in low prices. So make these types of strategies and save your money.
And also, don’t forget to help others in need because there are chances the same person could be you, so think like that and act humbly. Spending on local brands of our country rather than the big multinational brands will indirectly help the country and that person directly selling or manufacturing it.
Money management is an art that everybody should know not for the pandemic specifically but in general because it will make you a satisfied person in terms of your financial position. I hope these money management tips will help you somehow. You can start your preparation from today onwards and spread awareness too with the people living near. Let them aware and help the country and community to battle this pandemic situation.
We Are In This Together!