When times are hard in a pandemic and there’s a possibility of a looming global economic crises, the two primary worries of most people are their health and finances. The WHO and other state agencies are doing a great job of keeping us informed on what to do about our health but what are you to do, to manage your finances during these times?
Related: How To Keep Sane During A Pandemic
In places where there is a current lock down, a lot people have either been laid off by their employers, or had their hours or pay reduced.
In other words, your income has reduced but your expenses very likely has slightly increased or remained at the same level. Though your rent and utilities for one, hasn’t changed, your food and groceries budget has probably increased.
Managing your finances wisely is absolutely more important this season than ever before.
Related: The Top 10 Money Issues In Marriage To Avoid
So what can you do to balance things up and remain financially healthy during these times?
21 Ways To Manage Your Finances During A Pandemic
1. Extend payments with some sellers and vendors
You could have a negotiation with sellers to defer or extend payments (like a car note) at this time.
Try as much as possible not to pay full cash or in advance for anything. During these times, parties are more willing to extend flexible terms. Even if they say no, give it a couple days and then ask again.
2. Speak to your landlord about delaying your rent
Maybe for 2 – 3 months – if you can’t afford it right now.
Explain to your landlord how the current crisis is impacting you and how you are going to need some more time to pay your rent. At the minimum, you should be allowed to pay your rent in arrears rather than the typical advance payment in most home rentals.
3. Ask your lenders to defer Payments on mortgages and other loans
Even if you think you don’t need it, consider asking your bank for more time to make payments on principal and interests. You might get one or both.
Related: 10 Steps To Resolving Money In Marriage You Need To Know
4. Talk to your credit card company
About delaying minimum balance payments on your card for 1 – 2 months.
Most credit card companies will let you do this and will waive late charges if you ask sincerely. They are probably waiting on your call.
5. Take a cash advance from your credit card
In addition to allowing you make purchases or transfer a balance from another credit card, your credit card may come with the ability to get cash.
Most financial experts typically discourage taking cash from your credit card due to the interests and fees charged but when liquidity is at stake, you got to do what you got to do.
6. Contact people who owe you money
This step might be difficult given most people are also worried about cash at this time but it won’t hurt to still try -if you are up to it.
Consider asking them to make a partial payment or even offer that they only pay half and give a debt forgiveness for what is left of the debt- if you can afford to do that.
Related: How To Relate With Friends Who Borrow But Don’t Pay Back
7. Review your cash position daily
Most people do this once a month but at a time like this, it is important to look daily at how much cash came in and how much was disbursed.
You can use a simple spreadsheet to do this. You might be surprised by what you find you are spending money on.
8. Discuss extending tax filing and tax payments
People from the US already got their tax filing date extended from April to June.
Regardless of where you live, do a little bit of research and see if you might be able to file an extension or arrange a payment plan.
9. Sell something
Take an inventory of your personal items and possessions and make a list of what you don’t need. You could sell these items on Amazon or eBay.
10. Consider freelancing
Even if you are fully employed, you can consider offering your services online via Upwork or Craigslist. Every penny counts.
11. Start a side hustle
This might actually be the best time to start working on that cash generating idea you’ve always had. Don’t hold back.
12. Talk to Uncle and Aunty from Bel-Air
Of course, I don’t mean this literally, but depending on your situation, you might need a handout.
Most of us are shy to do this, but it might be time to reach out to that rich friend or relative for help.
No aunt? No problem. You could consider setting up a Go fund me page instead.
13. Put a stop to ALL non-essential spending
Prioritize expenses and stick to the minimum you need to survive.
Identify what you can cut immediately and what you might be able to cut over time.
You don’t need both Disney Plus and Netflix at this time. Cancel one or even both. You could in replacement, find a free streaming service for now.
You also don’t need Starbucks everyday. Learn to make your own exotic coffee. (Costco sells Starbucks coffee at the beverage aisle. Yay!). How about not eating out or having any takeout for a while?
14. Skip one meal a day
-If you can.
Eating one less meal a day can save you a ton of money over time. Most of us will be okay if we skip one meal a day.
There has been a lot of research on how eating less is good for you. You should however, speak with your doctor on what’s best for you based on your particular health circumstances.
Related: Why Having Family Dinners Is Important
15. Renegotiate prices with vendors/service providers
Believe me, everything is now negotiable. Call your cable and phone company and ask for a better pricing today.
16. Cash out your reward points
If you have cards that issue reward points, you might be able to use some of those points to buy the items you need. By doing this, you conserve your cash and preserve your finances.
17. Be informed
Stay on top of new programs, government regulations, and laws regarding unemployment benefits, health insurance, free food, aids etc.
Most governments and organizations are trying to help now. You don’t want to miss it when a give-away is happening.
18. Harvest coupons
This is not a good time to trash mail coupons. There’s a coupon for almost everything you want to buy. You could start hunting for coupons now. Who knows? You might be able to get a free pizza!
Yum!
19. Do a treasure hunt in your house
Hello Matey…Arrgh!
A large percentage of people have small amounts of cash unknowingly hidden all over their house. This might be mostly coins, but little drops of water can make an ocean- may be not mighty in this case though.
Haha!
Take some time in your day to check all the pockets of your old clothes. Check all drawers and cabinets. Check the glove box in your car. I did this at my house a while back and I found almost $100! And it took me just one hour.
$100 per hour is not a bad deal. *winks*
Try this and thank me later 🙂
20. Work from home
Working from home is the new sexy!
shhhh! and I’m loving it! hehe!
If you are not already doing this, you could ask to work from home. This will help you save on gas and mileage. You can also put that commute time to good use – and leverage on the time you spend with your family.
It’s a win-win!
Related: How To Work From Home And Be Highly Productive
21. Communicate
Communication is key to making all of these happen. Even if you are an introvert, communicate in the best way you can.
Make that phone call.
If you don’t feel comfortable with a phone call, send an email. Use whatever method you feel comfortable with, but make sure you talk to the people that matter and you will be surprised how well you can live even in these times- without trying much.
Pin it for later!
Are there other ways to conserve cash and manage your finances during these times? Let me know in the comments.
Bonus Tip
-Don’t blame yourself for what’s happening to your finances right now.
