How to manage your money during COVID-19
The global COVID-19 pandemic has changed all aspects of our lives; socially, financially and economically. During lockdown things were uncertain for everyone.
Managing finances was a challenge and nobody knew how long we would be couped up at home away from offices, restuarants, cinemas or airport. Now with speculation of a second wave hitting, people can’t help but prepare themselves to social distance at home again.
While it’s difficult to tell how long the effects of the pandemic will last or if a second wave will hit, we want you to know that you’re not alone and we’re in this together, especially when it comes to your finances.
We get it. Managing your money during this pandemic is possibly one of the toughest things you’re facing right now. The truth is, many people lost their jobs, others are getting half their regular salaries and many small enterprises are struggling to survive.
Your financial wellbeing should be a priority and we’re here to help you manage your money during these uncertain times.
How can I manage my money on a tight budget?
The first thing you need to do is take a look at all your bank accounts and see how much cash you actually have right now. Calculate how long you can actually survive with that amount of money and go through all your previous bank statements to establish your wants from your needs, the time to cleanse is now.
Technology has blessed us with the gift of mobile banking, which makes it easier to understand and track spending habits, create personal budgets, pay bills, send money to loved ones and even donate to charities. Mobile banking can guide your priority list and enable you to cut your spending and distinguish what you can and can’t live without.
Is it safe to switch to mobile banking?
This pandemic has forced even the skeptics to switch to mobile banking. Safety and security is a bank’s number one priority, that’s why you are usually asked to confirm your identity with a fingerprint, Face ID (if your phone supports it) or a unique password.
With proper precautions, your money is pretty safe when you’re banking online. To make sure you’re always safe, you can check the date, time and location of every transaction you make.
How can I better prepare for the future?
If we’ve learned anything from this pandemic, it’s the fact that we need to start saving. Social distancing forced people to stay home so the things you usually spend money on, like restaurants, eating out or shopping were no longer an option. We learned to entertain ourselves at home, bake bread and be resourceful with what we have.
Take this time to start a savings habit, buy what you need and don’t panic shop at the grocery store. If you’ve never created a budget for yourself, now is the time to do so and to learn about your finances. Make sure you set money aside in a savings account at the beginning of the month so that you condition yourself to live within the budget you have set for yourself.
Devising a strategy and thinking ahead will prepare you for any unpredictable events or bumps you might face in the future.
This crisis will certainly end and people, markets and economies will recover from this. We don’t know when but there are lessons to be learned here. Whether it’s budgeting, saving, working from home or otherwise- this global crisis is an opportunity.
