As the pandemic starts to settle slowly and we witness companies putting in motion their action plans to recover from the COVID-19 outbreak, we are all sitting and wondering what this could look like for us. How am I going to recuperate from this? How am I going to cover unforeseen expenditures like this? How am I going to improve my earning potential
Whether you are navigating the murky waters of being unemployed, furloughed, returning to office plans, or continuing to work remotely– we have many things to consider as time continues to rapidly advance. And this is the time when you need financial tips more than ever to sail through the post-pandemic world.
How do we treat debt? Are there any more services or funding for relief? How will we pick up the bits and recover what might have been lost properly?
To jumpstart your journey of reclaiming your finances, use the following money tips
5 Essential Financial Tips For The Post-Pandemic Life
Maximize Your Liquid Savings
This financial advice will be very helpful to you because cash deposits can benefit you the most in a crisis like a pandemic, such as checking, savings, money market accounts, as well as certificates of deposit (CD) and short-term government investments.
You would want to turn to these resources first because their value does not fluctuate with market conditions, unlike stocks, index funds, exchange-traded funds (ETFs), and other financial instruments in which you may have invested.
This means that without incurring any financial loss, you can take your money out at any time. You will not face early withdrawal penalties or incur tax penalties, except for CDs, which normally cause you to forfeit any of the interest you have received if you close them early.
Don’t invest in stocks or other higher-risk investments until you have several months’ worth of cash in liquid accounts. How many months’ worth of cash do you need? It depends on your financial obligations and risk tolerance.
Make a Budget
You never know how much money you need for your emergency fund which will be of use during a crisis like the COVID-19 outbreak. As the first and the most important financial tip to sail through the post-pandemic world, we suggest you make a clear statement of how much money you’ve got to come in and go out every month.
And if you are not maintaining a budget you will also have no idea whether you are currently living beyond your means or overextending yourself. A budget is not a parent, but it is a supportive tool that will help you determine if you are comfortable with where your money is going and where you stand financially. It can not and will not compel you to change your actions.
Prepare to Minimize Your Monthly Bills
Now you do not have to do so, but be prepared to start taking off something from your expense list that is not a requirement. If you can get your recurring monthly costs as down as they can be when money is scarce, you would have less trouble covering your bills.
Start by looking at your budget to see where you might currently be spending more money than necessary. For example, are you paying a monthly fee for your checking account? Explore how to switch to a bank that offers free checking. Are you paying $40 a month for a landline you rarely use? Learn how you might cancel it or switch to a lower rate emergency-only plan.
You might find more money tips you can implement by cutting your costs now just to save money.
Pay Down Your Credit Card Debt
If you have credit card debt, a large part of your financial spending is probably eaten up by the interest charges you pay per month. You will decrease your monthly financial commitments if you make it a point to pay off your credit card balances and put yourself in a position to start developing a healthier nest egg. Getting rid of interest payments frees you to bring more valuable stuff with your money.
Take this financial tip very seriously as this has a significant impact on your post-pandemic saving level.
Look For Ways To Earn Extra Cash
Everybody has something they can do to raise extra cash, whether it is trading possessions you don’t need anymore (either online or in a garage sale), babysitting, chasing credit card and bank account opening incentives, freelancing, or finding a second job.
Compared to what you earn at your primary work, the income you earn from these tasks can appear negligible, but even small sums will add up over time to something important. In comparison, all of these things have side advantages: you can end up with a house that is less cluttered or decide that you like your side job enough to make it your profession.
The Bottom Line
Life is uncertain, so it is to be prepared and careful if there’s something you can do to stave off catastrophe like a pandemic situation. You can turn a possible financial disaster into a simple temporary loss with the right planning and good financial tips for a post-pandemic life.