Why do we need to re-plan personal finance in Covid 19? The situation of the Covid-19 gives us many lessons. It’s not only about health care but also about money system of the world.
People lost family members during pandemic. People lost works. People lost money. Many are facing difficulties of job, salary settle down and no bonus. Business owners are also in the process of bankruptcy.
This situation is not expected. At the same time it is also unexpected that we will have the same world after Covid 19 pandemic.
How to reduce personal spending?
Try to stay alive. Settle your personal expenses. If you have any bad expenditure, cut it today. You need to reduce your spending. You can perform your personal needs yourself. Such as hair cut and food making, laundry etc.
Read: How to Finance a Business in Covid 19 Pandemic?
You can rethink about your house rent. If possible downgrade the house. You can try to reduce the use of utilities like telephone, gas, electricity, etc. You can also repackage your Internet data usage.
In this bad time, if you have a car, you can limit its run. If possible drive the vehicle yourself.
If needed, stop paying for drinking. And do not go to night clubs. It will reduce your health risk too.
What about savings?
It’s difficult to save money in Covid-19. After that, you can try to save some money for the upcoming days. Because, we do not know about future time is whether good or bad we are awaiting.
For the savings you can choose small installment size for your savings which should be affordable. This savings will prioritize the risk fund.
Read: Personal Money Goals.
Is their any risk to survive with your family?
This is a big issue that you are most vulnerable and surviving is the main point to you, you should survive first. Do not think of savings and income. Directly use credit cards and ask for help funds. Try to earn money from new ideas without new big investment.
If you have any loans, you should stop paying that’s installments. Place an application before the bank manager for the stop for some months or rescheduling it.