The world is facing one of the biggest challenges in history and while it has a major impact on health it also has a consequential effect on finances whether it be of an individual, community, nation, or a continent. Money is being spent in a bid to provide solutions and or alleviate the effect of the crises. This is unprecedented and unexpected, the money spent would also be unexpected or unplanned expenditures. Finances will be affected but what can be done in such a case to help your finances.
Many are worried not only about the crises but the effect of the crises on their lives and the ability to be in control and to live in these times and afterward. Have you been affected or scared and anxious about your financial future? Are you worried and know not what to do?
I will like to share with you some 10 tips that could help your finances in times of crisis.
1. Assess your current financial position
It is very important to assess your situation to know where you are. Understand how your finances have been affected by the crises or how it is likely to be affected in the future if it is an ongoing crisis especially your major source of income. If your work will be affected and there will be no income or reduce income you need to assess the situation to know whether you can make up for the difference and for how long.
Try to understand what will be required to make up for the difference if you continue to live as you do now. If that difference is so much you can also determine the difference but keeping only the essentials and have a good idea of what you would need to at least provide for the essentials of life.
Take stock of all your finances and see how they could be of help to you at this time including savings, investments, and assets, and have a clear picture of your finances and where you currently stand. Some people could still be fine with reduced income and some others could tap into savings while some others may have a massive difference to make up for, so understanding the situation will give you some insight and help you to know what to do next.
2. Do not deceive yourself
If you have been able to assess your situation successfully you should know where you stand. You will have some peace of mind if you think you will be fine or you will need to take some relevant actions if you know that you will be affected based on your assessment. It is crucial to be truthful to yourself and take relevant actions. Plan with what you have not what you think you would have or a promise that you think would happen.
Many people get promises in times of crisis even from sincere people and governments or even insurance companies but the truth of the matter is that many of these even if they come through may not be in time for the need it was meant for at least maybe for majority of cases. Some other times it could not be the anticipated amount and usually, it may not always happen as you think or anticipate. Be truthful to yourself, have a sincere approach, and take relevant steps in time before your situation gets worse or out of control. Even if you decide to deceive everybody, do not deceive yourself.
3. Trim your expenses
Expense is a word used to describe what takes your money away. If what comes in is being affected by crises you should be interested in where your money is going or being spent or probably be interested in reviewing everything on that list. You will typically have essential expenses which are things that are important and none essentials which are things that you can do without which varies depending on the individual but it is a preference you prefer to let go to avoid being in a position of debt or being dragged to court.
If you are sincere and realistic you may be able to find some things you can remove from your expenses that are not critical to life and be able to carry on with the essentials. If you have managed to trim the list of expenses as much as possible and you still have some difference to make up for then you have to seek other options to make up for the difference.
You may have things you pay for that you don’t need or do not use regularly or can do without for a while. It is all about you and your choices, do you prefer to keep the non-essential service and then be in debt or lose the service even for a while and be free?
4. Check for Excess and convert it to what you need
You may have things around you that you have never used or no longer used that is still of value and could be of great demand in times of crisis. This could be cars, clothes, appliances, gifts, and so on. You have them all around you and you are in crisis.
That is money disguised, keep what you need and convert what you do not need to cash to help your situation or even give them out to those that need them in time of crises and you will have also contributed to making life better for other people and you, in turn, will get a reward of a better society.
This is also something you have to determine yourself based on the lifestyle you have chosen, it is a question of do you prefer to have your house littered with giant flat-screen televisions and you keep complaining that you do not have food or money for rent or you do away with the excess and be free?
5. Exercise Discipline in implementing your Plan
Make a plan in a time of crisis, create a realistic budget, and administer the budget with discipline. You need to exercise discipline to only allow the expenses you have prioritised as essential in the time of crises.
If it is group finance, appoint someone strict enough to follow the principles agreed and one that implements the same without emotional or sentimental bias. Make your rules and abide by them. If you make your rules and break your own rules you are not wise.
6. If you are in debt do not run away from your creditors
Many people run away from their creditors or ignore them in times of crisis but remember they have done you a favour and helped you by giving you that money or service. It is not a good idea to run away from people or institutions you owe even in the time of crisis rather call them and explain the situation to them, how you have been affected and negotiate with them on how you can pay up under favourable terms.
Apart from the fact that running away destroys your future opportunity and creates a bad history for you with such people and institutions, it could also make things worse in the immediate as you may run into more financial difficulties with that attitude. Are you owing or likely to be owing or default in a payment like rent, utility bills, loans, etc? Call them as soon as you have done your assessment and negotiate as you are in a better position to make the most of the situation before things get bad. Depending on the person or institution and your negotiation skills you may have an outcome that will give you peace of mind ranging from deferred payments, frozen rates, other possible payment options, lower rates, extension of time, downgraded services among others.
7. Use your time to meet your needs instead of looking for money
Many times we only see one way of meeting our needs as that is by having money, so many spend their time looking for money and then use the money to meet their needs. You can use your time to provide yourself the service if you can instead of paying someone else to do it for you especially if the crises have provided you with more time as you could not do your usual work.
So many people have spent their time doing what they would usually pay for like cooking, baking, making soap, face masks, hand wash, gardening, sewing, repairs, and so on. If you do not have money and you have time, you can use your time to meet the need you would have met with money or maybe some of them. Check your lists of needs and try to figure out what you can do with the free resources you have around you with little or nothing to meet such needs. You will be smiling afterward.
8. Give what you have
If your work has been affected temporarily or permanently, your life is still full of potentials, skills and abilities. What can you do? Your hobbies, skills, experiences, and resources around you could be the wealth you have not seen. Look inward and come up with what you can do very well that is relevant to the season and then provide services or products that people need not just anything good but what people need especially in times of crisis.
Help others with your skill, whether you do it for profit or goodwill you are using your gifts to add value to humanity and also improving yourself. It may well become a discovery for you or a new business or something that will bring significant change but whether they pay or not you are adding value and you will be rewarded directly or indirectly.
9. Take advantage of opportunity
Some opportunities only come in times of crises but it all depends on your perspective and how well you can see. Many opportunities come and go and many do not even realise it at all. Be alert and make the most of the opportunities available to you in your environment and beyond to make your situation better.
There are many opportunities now depending on your location like banks offering payment holidays, interest rate reduction, rate freezes, flight booking cancellation without fees, flight rebooking opportunities for any time or location, differed payment, mortgage holidays, interest-free overdraft, no penalty late payments, free delivery on all orders to mention a few. It might not be the same everywhere or relevant to all but the idea is that regardless of the location the time of crises offers unique opportunities that are time-limited which could be beneficial to you, so find out what is available that could be of help to your financial situation. Stock market shares have fallen globally, for investors with savings it might be an opportunity to take advantage of the times, some people might be selling their excesses which could be cars, clothes, properties, jewels and so on, it could be an opportunity to get the things you need for a fraction of the price. If you open your eyes it not all bad news in times of crises some lose and some gain unfortunately but that is how it is.
You can make the most of the opportunity if you are well prepared. So many countries currently implementing lockdown allowing people to work from home which for some it could mean lots of saving in transportation and other related costs and so many jobs are now available that allows you to work from home because of the current crises. It is an opportunity, it may not always be available, so if it is relevant to you and could help your priorities, take advantage of it while it lasts.
10. Seek Help
Have you tried all you can and there seems to be no way out? If you have suddenly found yourself in a difficult situation and you do not know what to do or you have been overwhelmed by your present situation, do not keep quiet, please seek help.
You are overwhelmed by crises because all you have known is not sufficient to carry you through so you need to seek help and that as soon as possible.
Do not suffer in silence, speak out, and seek help before things get worse. Nothing will change if you do not do anything, so if you do not know what to do, seek help from the right and trusted sources as that is the beginning of the solution you need. Many have gone through the situation you are currently in now and many more will still go through it, so do not be afraid to ask for help, your first call might surprise you as you may find out that your issue is quite common and known to many and you may end up with a solution and peace of mind.
Please feel free to share this post if you found it useful, and remember to get in touch as I would appreciate your comments.
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