The Covid-19 pandemic has not just endangered millions of lives across the globe, but it has also brought unprecedented disruption to livelihoods. Countless people have lost their jobs or sources of income. Economies have been pushed into a recession. The pandemic will come to an end, what no one knows yet is how the pandemic will end. That’s why just as you protect your physical health diligently, it’s important to protect your financial health prudently, so that you’re able to come out of this crisis with minimal financial damage.
We have compiled 5 money management tips here to help tide you over the remainder of the COVID-19 crisis, and any other crisis that may come along in the future.
- Create and Maintain a Sufficient Emergency Fund
When you’re always short on cash, building an emergency fund isn’t always the easiest task to undertake but it’s one of the most vital things that can make or break your finances. During times of uncertainty, you want to have extra cash at your disposal, so you’ll be able to take care of unexpected expenses and move on.While “sufficient” may mean different things to different people, you’ll be well-advised to ensure your emergency fund is worth at least 6 months of your expenses.
- Control Your Spending
We understand that when you are in crisis mode, stress and shifting expenses can make it difficult to stick to a budget but you have to resist the urge to let your budgeting practice go during the worst of times.Prioritise your expenses and cut down heavily on non-essential spends to avoid a financial fallout!
- Continue Saving
Do not discontinue your essential investments and savings that are critical to fulfil your life goals and safeguard your financial future. For the lesser important ones or those that are not aligned to any relevant financial goal, you can cut them to raise cash after factoring in the cost of liquidation like exit loads and penalties.You also might create auto-transfers to your savings account so that your savings continue to grow without much effort on your part.
- Concoct a Plan for Big Expenditures
“If you fail to plan, you are planning to fail“. Benjamin Franklin’s quote applies to many choices we make – including personal and business finances.As a SME owner, you may not want to utilise your working capital to pay for expensive equipment or to fund operation expansion. The same theory applies to handling personal finances, especially when the economic situation is volatile. With a spending plan in place, you will be better able to find the money you’ll need to reach them.
- Consider Professional Assistance
There are many programs and different types of loans exist to help people with their financial obligations during times of crisis. While asking for financial assistance or applying for loans aren’t always a smooth sailing process, it can go a long way toward successful money management during a crisis because help in one category allows you to reallocate funds to a more critical budgetary category if needed.
Avex Credit is a licensed money lender in Malaysia under the purview of Ministry of Housing and Local Government, and governed through Money Lenders Act 1951 and Money Lenders Act (Amended) 2003. We provide a variety of personal and business loans that are tailored to meet your specific needs.
Apply for funding and find out if you qualify today