The Coronavirus has not just seen the world have to combat health concerns, but we have also observed the global economy taking a massive downturn. I know I personally had planned all these trips at the beginning of the year, only for most of the world to be shutting its borders to control the spread of Covid. Since we’re living in uncertain times, it’s important to get your financial ducks in a row! Here are a few things to consider:
1. Take a Good Look At Your Credit
Credit is not necessarily a bad thing. If you have a credit card and manage your debt effectively by paying off your full balance at the end of each month, your credit rating can actually increase. If you have more than one credit card and the balance is maxed out on all of them, the chances are that you are not paying more than the minimum balance of each one. Rather than accruing more debt, you need to consider a loan that will consolidate everything into one monthly repayment.
This will make your debt more manageable. If you are struggling to go it alone with your money, consider contacting a specialist lawyer like Rashad Blossom who knows everything there is to know about claiming back control of your financial future.
2. Look At Your Job
If the threat of being laid off is looming, you need to consider your options. You have to take a step back and reflect on where you’re at financially. Do you need to earn the same salary as you do now or can you afford to take a pay cut?
You need to take a look at any voluntary redundancy packages brought forward. Sometimes these severance packages can be very generous . This can give you a cushion to help you look for a new role without having to worry about paying the rent, the mortgage, your credit card debt, or loan. If you choose to go for redundancy, use your free time to retrain or improve your qualifications while you hunt for work. Anything that you can do to enhance your resume is a bonus when you are out of work and competing with other job seekers.
3. Rethink Big Ticket Items
The vacation you had planned, the new car you wanted and home renovations need to take a back seat for a little while. It’s best to save for a bit first. You need some money in the bank to help you should you lose your job. If you have any fingers in investment pies, it might be time to cash them in. You can sell your second rental property and release the equity or you can cash in your bitcoin to boost your finances.
Money worries cause anxiety at the best of times. Add in a global pandemic and the uncertainty of your situation can become super stressful. Follow this guide and you can become more financially astute during lockdown.