Covid-19 pandemic has hit us all, and there is no doubt that with wages being cut, no chances of a pay rise, job certainty disappearing, and work contracts drying up, your finances are being stretched too.
It is normal to have financial concerns with the situation going out of hand.
However, by making little adjustments and following a few steps, you can make your financial troubles go away efficiently.
Here are five steps that you can follow to tackle your finances smartly and get some quick cash in hand.
1. Don’t panic! Sell possessions that aren’t necessary
You can start by selling something valuable lying in your house for a long time or sell clothes in consignment shops or on online sites like ThredUp, Letgo, and more. Now, this will help you declutter, and you can earn money fast. Besides, if you plan on selling the stocks that you’ve accumulated, there’s nothing to pay back. However, selling stocks during a down market means you will have to sell for more than you paid, so this may not be a great option until and unless you are in urgent need of money.
2. Consider payday loans
Payday loans are attractive because they are short-term loans specifically designed to be repaid by the consumer in a single payment on their next payday. Now, this may sound like a great idea, but financial advisers recommend that you opt for these types of loans after thorough consideration. This is because Payday loans have high-interest rates, and most consumers often fail to pay off the loan when it comes due.
But, what you need to remember is that you need the cash for a short time period, i.e. until you receive your pay. Chances are, you do not need a huge amount of money, but something that pulls you through the month. Hence, your interest due along with the principal amount will be lower.
The best part about payday loans is that it can be utilised for any purpose, be it for an overdue bill or any medical expenses. The only thing to keep in mind is that you avail the loan from a reliable and trustworthy lender, such as Badger Loans, so that you do not fall into a spiral or unwarranted debts.
3. Turn to your service providers, friends, and local community for help
Other than friends and family, turning to organizations and Community foundations that help people during a crisis is a reasonable option. Many organizations provide direct emergency financial assistance to individuals in some cases. Moreover, if your businesses are closed, you can seek help from business counsellors and take advice from the Financial Planning Associations, which are offering free financial guidance. Further, for people affected by the coronavirus pandemic hard, many service providers are waiving penalties. Therefore, you must not feel shy to connect to them and ask for help.
4. Plan your monthly expenses & increase your emergency fund
In this time of financial uncertainties, it is crucial to have a few months’ worths of expenses in your savings account. However, the reality is that without Jobs and pay cuts, you may not be anywhere near that amount this year. Don’t stress! Now is the time to think and plan about those expenses that you can live without and cut them down. For example, spending on Netflix subscriptions, restaurant meals, manicures, and gym workouts, are not necessary at the moment, and you could set aside this money in a savings account.
5. Apply for 0% APR & Unemployment
If cardholders ask for help, many credit card companies offer 0% APR periods for new purchases. So explore this option along with applying for unemployment if you have no job. Now, this will make you eligible for half of the state-level benefits.
Lastly, remember, this may be a frightening situation, but this will pass.
Therefore, it is crucial not to panic as it can lead to irrational thinking, and you may make poor financial decisions.
So make rational financial decisions after some research and take care of both the physical and mental health of you & the people you care.
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Abhay is a Digital Marketing Guru and an accomplished entrepreneur with an experience of a decade working with various businesses varying from startups to established brands. He co-founded many companies like Logicsofts, PrintYo, CrazyRise and more. He is passionate about SEO and Online Data Analytics, which plays a vital role in any business to grow and mutate as per the data results. Follow me on LinkedIn, Facebook and Instagram