How to manage your money better in situations like leave without pay,pay cuts or layoffs due to COVID-19
At the end of March, several businesses have taken the decision to fire workers, to claim indefinite vacancies without pay and to cut wages by as much as 85%. CEOs have sent painful and distressing emails about jobs and salary cuttings to staff, some of whom have worked for decades in the same businesses.
Keeping the impact of COVID-19 in mind this situation is not going to improve very soon and people going through this scenario need to act smart so that they can overcome their financial problems.
Lets check some of the tips which can helps us to keep check on our financial needs:
One thing was obvious from the lockout,Fundamental living expenses aren’t very huge. It is the spending costs such as food, transportation and leisure and the buying of luxury goods that warm your pockets. Now is the best time to re-evaluate your spending.Keep the money handy and maintain balance of the bank.
Avoid using credit card as much as possible but if you are using then spend only what you can afford to pay back .A general rule is not to spend more than one-third of your income on debt — including deposits, credit cards, and loans.
Use EPF money if you are running out of cash,The Indian government informed the change in rules to withdraw funds from EPF accounts for financial requirements relevant to COVID-19. Under the amended rules, an EPF member can withdraw an amount equal to three months of basic and dearness allowance (DA) or 75% of the account credit balance, whichever is lower.
You can liquidate your assets if needed instead of borrowing loans, even at low prices. Make a list of your assets that you can liquidate.Debt is like a disease ,so keep distance from it as much you can. Make use of your mutual funds,gold investment etc.
If you have been unable to remain afloat with a pay cut or a job loss, you may want to commercialize your talents and passions to generate additional income.Involve your spouse as well to provide financial support.Keep your eyes and ears open to new career possibilities to do something beyond what you already do. A crisis is the opportunity to see what is freshly needed and how you can adapt your expertise in a changing environment.
Don’t fall into any speculation that it is the best to buy property or shares or anything.This is not the right time to gamble with your limited savings.Handle money that you have very carefully.
Maintain yourself physically and psychologically so that you actually do not want to spend on your medications and therapies. Do your regular workout, walk or something to keep your body healthy and fine.
