With the arrival of COVID-19 the world took an unexpected turn, we had to protect ourselves at home for our safety and that of loved ones, this led to many companies closing their doors and a large number of people lost their jobs. As a consequence, the family economy suffered some changes and imbalances, which has caused devastating economic effects.
Different airlines, hotels, restaurants, shopping malls, department stores and tourism are some of the sectors that have suffered the most from this pandemic, but even more so, small entrepreneurs and informal workers. They have seen their economic income decrease or disappear. The coronavirus situation has generated that we have a good financial education that allows us to know how to manage money to face the impacts that this pandemic has left. Due to the loss of employment, reduction in income and the low possibility of accessing credit, we must learn to control expenses to avoid greater evils.
To help you overcome this situation, we give you some financial tips to manage money in this atypical period we are going through:
1.- Readjust your budget: We are going through a very unique world crisis, so it is worth controlling the expenses we generate. It is time that you start to review your income and make the adjustments you think are necessary to face this situation.
2.- Avoid falling into investment temptations: At this time you will find many investment opportunities that can be very tempting, but it is important that you take stock of the advantages and disadvantages, to avoid inappropriate decisions.
3.- Make a list off all expenses: write down all income and expenses and with these data prepare a budget, this will allow you to keep track of expenses to determine where there is more consumption and thus optimize the family economy.
4.- Prepare an invetory of financial obligations: Even when we are going through a difficult time, we must fulfill our financial responsibilities, which include tax payments, rental income, card payments, mortgages, among others.
5.- It is time to make use of your emergency fund: We have always heard of the importance of having an emergency fund for difficult cases and this pandemic situation requires it. Just present you that when improving the economy, you have to re-establish that base for unexpected setbacks. This crisis generated by the appearance of COVID-19 will happen at any time, but the effects it leaves on the family economy will only depend on the financial education you have and how you put it into practice.
Alejandro Enrique Esis Urdaneta 