How to Manage Your Finances during Lockdown
You are likely to worry about so many things during this coronavirus pandemic- your health, your ability to grab toilet roll, the mental state of your loved ones, job security, as well as your finance. But apart from health safety, the next thing you want to consider is your investment during lockdown because the level of uncertainty in the society is on a high.
More so, considering the stock market in a roller coaster, the world is beginning to think of a better way to make money, cut spending, and save more. Although it might feel awkward to panic about your money during this global crisis, it’s still a powerful force that can keep you up late in the night- worrying about a drop in salary, rent payment, or insufficient savings to live off.
That’s why we compiled the best tips offered by financial experts on how to manage your finances during the coronavirus pandemic. So instead of tossing and turning through the night, check out these useful tips to help you become more financially secure in the coming weeks and beyond:
1. Review your financial Standing
You don’t have to lie to yourself. Now is the time to think straight and know the reality of your financial situation. So you don’t have to be scared of checking your account balance. You should plan accordingly in the next few months and make a list of all your expenses, including housing cost, food, and any essential bills. It helps you know how to manage your finance.
So you can maximize the time you’re spending indoors to review your recurrent payments and direct debits to see if there are services you’re not currently using, or you’ve forgotten. Cancel these services to manage your finance.
2. Check your bookings to know if you have any pending refund
you probably have made plans to attend many events in the coming months and have made bookings. Or maybe you have booked flights to travel for a function. Most of these events and movements are already canceled by now.
So check the terms of the bookings you made earlier to see if you are eligible to get a refund. However, some providers will offer to change flights to scheduled time without any additional fees. You can seize this opportunity too to save extra costs.
More so, some insurance companies have policies to cater to canceled travel plans. So check the systems, but make sure you read the small prints for policy wording and exclusions because it can vary.
3. Consider getting grants if you’re self-employed
The Government’s Self-Employed Income Support Scheme offers a taxable grant of up to 80% of every self-employed person’s income. So you’re eligible if you make up to £2,500 per month for the last three years as an independent person.
You can learn more by clicking through the gov.uk website
4. Create a budget
You need to create a strict budget this period if you don’t have one. If you look into your spreadsheets, it’s worth adjusting your budget to take into account these new circumstances and how they will affect your earnings and what you spend.
Remember to be realistic here: look at what you’ve been spending on in the last two weeks and see if you’re not going beyond your initial budget. You’ll be amazed at the result you get.
So it’s important always to treat your budget as a living document – it still feels real to your circumstance, which is liable to change, particularly in times like this. If you need to amend your budget, do it wisely, but remember not to be too hard on yourself.
5. Get help and support
You don’t have to stay silent if you need help as there are means to get one. If you are concerned about experiencing financial difficulty or running into debt, it’s a good idea to speak to your bank. They will help you with solutions that fit your circumstances- these could include deferring loan payment or mortgage or allow you to access fixed-term savings without any conditions.
Some banks are already taking appropriate measures to support people who might be in financial difficulties in this period of uncertainty. Supports like payment holidays on loans and mortgages, refunds on request for the credit card cash & advance fees, and access to fixed savings without early closure charges are already on.
So you can get in touch with your bank this period and know how they can support your financial circumstance.
6. Create a unique savings pot for your commute money
If you usually spend £7.00 a day on travel, now is an excellent time to create exclusive savings for that. Yea, you’re not moving at the moment, so don’t get distracted and see your commute money as an excess. Don’t spend it on unnecessary items that you can do without for the moment.
Most online banking services permit customers to create a particular savings area. So you can create one and set up a daily direct debit of the money meant for your commute into that pocket. At the end of this global imbalance, you’ll be glad you saved the money.
Imagine spending £5 a day on your regular travels. By the end of a month, you would have saved up to £150 without feeling it.
7. Keep saving
Don’t begin some reckless spending all in some “end of the world” vibes- this can cripple your finance and put you in significant debt. Instead, make sure you’re saving what you can to cater for the unforeseen challenges.
However, your financial circumstance will determine whether it makes sense to save. But it’s advisable to keep a savings cushion for the unexpected bills that might show up in your face during this time.
You can decide to set a goal for yourself. It has helped a lot of people stay guided on their spending to save more. But be realistic and don’t try to avoid too much that your health or wellbeing begins to suffer. Do what keeps your worries and fears down and make you feel more secure for the future.
We are now in an uncertain era as the world battles the spread of the coronavirus. So it would be unwise of you to spend lavishly. It would help if you learned how to manage your finances during the lockdown, so you don’t put yourself in debt. But if you’re already in financial turbulence, you can seek help from your bank to enjoy exclusive offers for this period.