The difficult circumstances of the pandemic have not only caused a crisis of health but an economic crisis as well. Millions of people around the world are feeling the stress of managing their finances, as prices rise and incomes drop. Many industries are experiencing a slump in production and profits, which can put your financial wellness at risk.
Studies have shown that over 50% of Australian workers are feeling increased levels of financial stress, mostly because of the pandemic. It has led to many people making difficult decisions about their finances. Working people, health professionals, and their families are more likely to feel these increased levels of anxiety.
As such, we have created this list of tips and tricks to deal with the stress of managing your finances. Financial stability is right around the corner if you employ the money-management strategies.
1. Balance your budget with your income
In difficult times, it is important to budget your income carefully so you can make it last until your next paycheck. It helps to categorise your money into three different areas: income, necessary expenses, and what’s left. This might take time and a lot of calculation, but it is important to know the numbers. Your income should at least match your necessary expenses, which account for utility bills, rent, groceries, and so on.
If this is not the case, then it might be time to search for other sources of income or to reconsider what expenses are actually necessary. For example, a daily coffee from your local cafe is definitely not considered a necessary expense and may be worth letting go of if it means helping you stabilise your savings.
2. Consider rolling your debts into one
Those who have a lot of personal debt are likely feeling the weight of this pandemic more than others. Failing to make payments on these debts might cause their interest to skyrocket.
If you have one or more loans or debts you are struggling to pay, it might be better to roll all of them into one. They could be combined into a single loan, which can reduce what you have to pay in fees and interest. Not only that, but fairer and lighter repayment terms can be set so that you don’t have to worry as much.
3. Save wherever you can
Research has shown that an emergency fund of between $4,000 to $5,000 is enough to provide a safety net for working Australians in case of unexpected expenses. This could mean hospital bills, accidents, urgent repairs, and so on. This could be your next financial goal, especially since the threat of a health crisis is much closer during this time.
It also helps if you make this money as inaccessible as possible for yourself. This could involve setting up a different account that has automated transfers from your main account. You could be saving without a second thought; down the line, you might even be surprised by how much money you’ve put into it.
4. Borrow only from reputable lenders
While it is tempting to go to the nearest lender for that easy cash loan, it is important to consider how reputable they are. They may be able to give you money quickly, but how fair are their repayment terms? How high are their interest rates? These are just some of the questions you need to think about before signing up for that easy cash loan.
Final thoughts
These steps are all just about creating better systems to replace the ones you currently have. As has been said before, we do not rise to the level of our goals, but fall to the level of our systems. Only if you have the right systems in place can you enjoy financial freedom and independence.
If you’re in need of an easy cash loan to help with your current financial situation, however, send us at Fundo a message. We can provide teeny tiny loans up to $2,000, and we can approve it within the same day. We even consider payment plans up to 20 weeks for our teeny tiny loans. Unlock discounts and perks by paying on time!
The opinions expressed in the Blog are for general informational and entertainment purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific investment product. It is only intended to provide education about the financial industry. The views reflected in the commentary are subject to change at any time without notice.