The coronavirus hit global economy is battering to overcome the crisis. Despite best efforts by the governments, health authorities, pharma companies, medical field employees, not much progress are seen at the moment to bring down the scenario to normalcy. The crisis has left the people globally to stay in flight mode. One of the biggest questions which are haunting most of human beings is about surviving and surpassing this stage.
With the rising unemployment rate at an alarming rate and shrining savings level, we need to learn some of the money management tips which is the need of the hour to overcome this crisis time.
Let's check out for Easy Money Management Tips to Learn Amidst Crisis Times.
This is the first thing that every household should adopt to sail through the ongoing crisis. There is a need to reduce the spending habit and do focus your spends only on essential basic requirements - food, clothing. Cut down all the big-ticket expenses at the moment as uncertainty looms large over the country's economy.
Avoid Making Rash Decision
It is better to avoid making any rash decision when it comes to investment at the moment. Equities markets are highly volatile at the moment. Few business ideas are thriving, few of them are struggling to make a strong foothold. It is better to play safe and invest funds in the low-risk form of investments and steer clear of taking any kind of risks.
You must pay yourself first. Which means as soon as your salary is credited to put the money in your savings account to fund for your future financial goals. All you need to do is to automate the transfer of funds from your salary account to your savings accounts which is one of the easiest yet safest bet to save money in the long run.
Avoid Taking Loan
The loan will be an unwanted additional burden at the moment. If a loan is borrowed for construction of a house or property which will generate income in future or the land value appreciates then one can go ahead and apply for a loan. Else, it is better to avoid at this juncture as borrowing idea will make things worse.
If an individual has loan repaying capacity, then it is wise to borrow money against assets amidst high-interest rates loans.
Save Extra Money
The need of the hour is to save, save and save as much as you can. By saving money at the moment, we will be able to open up more opportunities at a later stage in life. The situation remains uncertain, so it is best to save whatever money you can and have with you.
If in case, you do not have an emergency fund in place, then do set it up by shoring up all the extra money you have in hand. Ideally for a bachelor 1-month salary should be put in an emergency fund. For a married couple, at least 3 - 6 months of salary amount should be parked in an emergency fund.
If you are married with kids then around 12 months of salary should be saved in an emergency fund to tide over financial windfall (if any).
Set up Two Accounts – Savings & Spending
Having more than one account will help individuals to break up the money which in turn will simplify its tracking frequently which in turns you to stay within the budget. All you need to do is to link your debit card to routine purchases like groceries, milk, fuel, essentials and so on.
These two accounts can be designated as short term and long term. The short-termed ones can be used for meeting out immediate expenditure and the other one can be used as an emergency fund to shore up extra money.