Tips To Take Care Of Your Finances In Times Of Crisis

Mindsmatter

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A twenty-four year old woman counting dollar bills.Photo by Sharon McCutcheon on Unsplash

Omicron continues to wreak far-reaching havoc on the global economy and the regional market. But even if you're not a big domestic or foreign stock investor, there are financial concerns much closer to home that this global pandemic has caused. These tips can help you keep your finances healthy despite today's adversities. With a solid handle on your finances, you'll be better prepared for whatever life throws at you in the coming weeks and months.

Let's take a closer look at how you can keep your finances in order even during a time of crisis or the midst of an emergency.

Increase your savings

One potential impact of the current situation is that you may have to stay home for several long weeks. With that, you can lose your income during that time if your employer doesn't offer paid vacation or the ability to work from home.

Some helpful ideas in these cases include cutting non-essential expenses from your budget.

In addition to these potential savings, you can find free ways to entertain yourself at home. Many services have provided free content, such as streaming services, television, virtual libraries, etc.

Focus on the emergency fund

If you're lucky enough to still be able to work from home, consider adding to your emergency fund. After all, by spending a lot of time at home, you can avoid impulse spending like eating out or unnecessary purchases at the mall.

An easy way to increase your emergency savings is to save your tax refund. If you haven't spent the funds yet, consider saving them for an airbag in case of an accident. Experts indicate that you should have a minimum of 3 to 6 months of salary in savings for these situations.

Lean on loans and your tenant

If your income has been irregular, your savings may be affected just as much and you may find yourself in the difficult situation of not being able to keep up with your payments.

Don't despair. Don't let late payments affect your credit history. In situations like these, you should not hesitate to ask for help as soon as you think your payments will be a problem. Contact a lender and your tenant.

You may be surprised, but lenders may be willing to work with you during this difficult time. They will do everything they can to help you keep your finances in tip-top shape, especially if you've made payments on time in the past. On the other hand, many tenants in different cities around the world have released rent to tenants who cannot keep their payments up to date because of the difficult situation.

Take advantage of low-interest rates

Due to the general economic instability, interest rates are falling. If you have a good credit score, you may be able to take advantage of extremely low rates on all types of loans. If you have outstanding debt, like a mortgage or student loans, now is the time to refinance. At times like this, the best strategy may be to eliminate as much debt as possible.

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Mindsmatter is written by Bola Kwame, Jack Graves and Emma Buryd. De-stigmatizing mental illness one day at a time. www.linktr.ee/Mindsmatter

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