The coronavirus and the whole pandemic took us by surprise. Apparently economists had been waiting for a crisis for some time, reportedly stock exchanges, real estate was already sufficiently and too much pumped up, and the economy was accelerated. It was supposed to be THIS time. But few people think that it will be now and now. Usually we think this will be the SINGLE. But crisis situations most often arise in this way, and the trick is to be prepared for them.
What I will write in this post is a bit like "a wise Pole after the damage", but is it not usually with us that we start consistent actions only when something starts to happen?
We start swimming regularly, when we have problems with the spine, we take care of our diet, when we see that our health is weakening, or we buy more and more sizes - and finances are very similar. Most often, we start to think about our money seriously - and this, unfortunately, more often concerns us - at a time when a crisis occurs in our lives.
And in personal finance it is very much like the stock market, there are ups and downs. So there are times of prosperity, but also times when we have to tighten our belts because things are going worse. And therefore, one of the important premises for both financial spaces is:
in good times prepare for worse times.
Were you financially prepared for such a situation that perhaps your salary will be lower or that you have completely lost your income? Or your partner leaves and you are left alone with the children? Either there is an illness in the family and suddenly more money is needed, or you both lose your job?
The same question should of course be asked by our government at this point - but that is another question and probably no answer 😊
HAVE YOU SAVED A LITTLE MONEY?
One of the most important issues in managing our personal budget is creating the so-called financial pillow. What is she? This is the sum of 3-6 months (some believe even annual) of our basic costs. This is our protection in the event of job loss, crisis or a more difficult life situation. It's something that allows us to think more calmly about the future, without being overly afraid. I believe that this is a mandatory item in our budget and everyone should have such money set aside.
What can we do now, apart from whether we had so-called a security bag? First, learn from what didn't work and fix it today. If you didn't have any money set aside, start saving and managing your budget properly today. Of course, most often in such a place I hear that I cannot afford it, because what should I save.
SEE ALSO: https://inwestujfinanse.pl/etoro-opinie/
Start with even small amounts and save as soon as you get your salary. Set up automatic transfers and let even the proverbial "few pennies" disappear from your eyes immediately 😊
BUT YOU HAVE INSURED YOURSELF?
In this situation, it is also worth reviewing all your insurance - especially those related to your mortgage. Maybe you have some kind of unemployment insurance and you could use some extra money right now?
I am not a big supporter of a million insurances, especially various strange combinations related to investing and insurance, but this time is also a verification of how we have been insured and whether we have sufficient insurance. It may also turn out that on the contrary - we have a crisis that has not happened in a long time, and despite a lot of insurance, we do not have any good for such difficult times.
DO YOU CONTROL YOUR EXPENSES?
Another thing - know your expenses. It is an integral part of the proper management of our finances, and perhaps the most burdensome for everyone at the beginning.
In a crisis like now, knowing your expenses exactly will allow you to see in which cost categories you can save. And cost cutting is now a must have for all of us. Most of us incomes have been cut down significantly, and we need to tighten the belt a bit to get through this.
SEE ALSO: 11 excuses for not taking responsibility for your finances
As it turned out in a study conducted on the Ariadne panel, approx. 37% of people asked about expenses answered that they now spend less than before the epidemic.
I admit that I was surprised by these results, because I thought that most of us, being mainly at home now, will cut our or our family's costs to a minimum. and that it is possible. Are you spending less now than you did before the epidemic? Please share in the comment.
DO YOU CONSTANTLY INCREASE YOUR COMPETENCES?
I also think that it is time to verify our competences and all skills. I suspect that suddenly it will turn out that many jobs can be done remotely without any problems, and others are unnecessary. Maybe being more at home now, you can learn something that will help you improve your qualifications? Perhaps you can now improve your knowledge of a foreign language, learn to use social media better