Ever since the outbreak, there have been news reports, press conferences and endless social posts about the coronavirus (COVID-19). All this information though educating, has managed to create mass hysteria—but there are still things you can control.
All the preventive measures on how to keep safe has been dished out and we hope the pandemic eventually blows over. What might not return to normal that has been disrupted, is the economy, the stock market, the financial market etc.
As a result of panic buying, the close of business operations etc., the economy has been affected; Prices of human necessities have gone up, which means Inflation, the price of dollar has gone up and the price of barrels of petrol (which is our source of livelihood as a nation) has gone down which means increase in price for the masses.
It may all seem like the apocalypse now because as a result of fear, people can’t invest anymore and those who have invested stand a risk of losing money, here are some commonsense approaches to handling your money right now. Here’s what you should do:
It’s important to gain the right perspective about everything. And you can’t do that if you’re making decisions based on fear. Give yourself a moment to make some clearheaded choices with your money. You. Got. This.
2. Get in your money budget and take care of your Four Walls: food, utilities, shelter and transportation.
For now, cut out all unnecessary expenses and extras. Go ahead and plan out three or four weeks, just in case. Be prepared!
3. Pause your debt snowball.
If you’re paying off debt, stop those extra payments. Just pay the minimums for now so you can take care of your Four Walls and pile up cash.
Just for now, you need to focus on taking care of your needs and that of your family
4. If you have an emergency fund, dip into it—but only if you absolutely need to.
Work on your budget first (as a couple if you’re married), then decide if you need to pull money out of your emergency fund. By the way, that’s what it’s there for: emergencies! And this is one isn’t it?
5. Don’t cash out your retirement.
No one jumps off a roller coaster in the middle of the ride. That’s how you get hurt! Markets go up and down in the short term. But you’re in it for the long haul—and your money is safer right where it is. So, if you have invested in the stock market or mutual funds, let it be. After all, when all this is over, you’d still need money.
6. Use common sense and kindness.
Wash your hands. Take care of your neighbors. Don’t put yourself or your family at risk, especially if you or they have any kind of health condition already.
You can turn this chaos into confidence. All you need do is exercise patience, don’t forget to breath.