The coronavirus crisis has affected everyone. The unforeseen conditions and enforced lockdowns created by the pandemic have led to significant economic disruptions. With the world dealing with the effects of COVID- 19, managing your money has become crucial for everyone.
For people who are not used to managing money, this crisis poses a significant challenge. Ensure better management of your finances by following these money management tips.
Tips to Manage Your Money
Cut Back on Spending
During uncertain financial conditions, it is an excellent idea to critically analyze your expenses and minimize any non-essential spending. Reducing current expenditure will help build an emergency fund that would ensure you are better equipped to deal with any uncertainty.
Withdraw from Your Savings Account
If you are looking for emergency funds, now would be a good time to withdraw from your fixed-rate savings account. Many banks will waive off any penalties associated with early withdrawals now.
Dealing with Debt
In case you have difficulty paying credit card bills or loan debts, talk to the providers to figure out a solution. New rules by the Financial Conduct Authority have barred providers from canceling credit cards until October.
Review Memberships and Subscriptions
Often, households have a monthly/annual membership for gyms, clubs, and even subscriptions to paid software or services, which they hardly ever consider using. It would be a good idea to cancel such memberships to reduce the financial burden.
To deal with the new COVID- 19 situation, several banks have taken measures such as introducing interest-free buffers and waiving a month’s interest on overdrafts. Therefore, if you have an overdraft, contact your respective bank for some relaxation.
It would be advisable to avoid undue stress and ensure you deal with any situation in a relaxed, composed, and logical manner while keeping a positive outlook.
Following these tips will help you manage your money during the coronavirus crisis. Apart from this, you should also ensure the best personal insurance coverage. Contact the experts at Pittman Insurance Group for all your insurance needs.