Here’s How You Can Avoid a Personal Financial Crisis During The Pandemic

Family LawJune 16, 2020

When will the world go back to the way it was? When will things start getting normal again? What do we do now? How do we ensure our livelihood?

These unanswered questions are stressing people out and making them increasingly anxious. In these uncertain times, the chances of leading yourself into a self-destructive financial trap are higher than ever. In other words, managing your finances in the middle of a global crisis is probably one of the hardest things you’d have to do in your life. As such, the chances of you making mistakes and indebting yourself further are very high.

Unsplash | Many people have lost their jobs due to the pandemic

Your current financial circumstance amidst the pandemic is probably also causing you a lot of worries. But, maybe it’ll help to know that you are not alone. In fact, you might not even be part of the society that was hit hardest. Many people globally were living on a paycheck to paycheck basis when the pandemic hit. People in the hospitality and tourism industry are facing the brunt of the pandemic, having been laid off of their jobs indefinitely.

So, what are you to do if you find yourself with a reduction of working hours- or worse, without a job?

Here’s how you can avoid a financial crisis in such a situation.

Have Enough Cash On Hand

To stay on top of your finances, you have to know where you stand with regards to cash. How many expenses do you have to pay off? What are the amounts, deadlines, and interests on these due payments? Do you have an income source? If yes, how much of your expenses can it cover sufficiently?

Unsplash | You should always keep track of your finances

Try Deferring Payments

At the end of the month, if you realize that you don’t have enough money to fulfill all your financial obligations, try identifying the payments that you can defer. Meeting your immediate needs should be your utmost priority. Deferring payments can help you avoid a personal financial crisis, as it frees up valuable cash that you require at a given moment.

Unsplash | Deferring payments can help you save money at the end of the month

Keep Yourself Informed

The last thing you need right now is to be caught off-guard with pending payments. Hence, it is recommended that you schedule reminders in advance. This will ensure that you don’t miss out on important dates. If there is a need to settle serious matters, defer payments, or to undertake a loan, you have to note everything in your calendar.