The world is currently facing a threat from a deadly virus (coronavirus) COVID-19. This virus has claimed so many lives and health practitioners are doing their best to craft steps and strategies which one could apply to protect his or herself from this virus. Stepping away from health, it is good to note that the world economy is also under attack, courtesy of this same virus. This is because in order to curb the spread, businesses have reduced their work hours or has locked down placing employees on furlough for the time being. Other employees are being laid off or earning a fraction of their normal earning because of reduced working hours. On the news, the stock market is losing a lot of money and it will only take just a little longer before many more people will go broke and hungry.
This is why there is a need to also protect yourself financially from the impact of coronavirus. You will not need the assistance of a medical practitioner in order to do this; all you need is a good planning and a few tips. And so, we have put together a few ideas that could help you protect yourself financially from the impact of coronavirus.
“The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.”
Dave ramsey
Here are some things you might consider:
- Building a personal business: This may sound a little out of place because businesses are being shut-down, how can one build a business in this situation? Well, it might interest you to know that 70% of businesses are online and the internet are not being shut-down. You could take your business online if you have one already. Or you could learn some skills and render some services online. This may help you make some extra money from the hours you are not at work and if you have no job now, it could become your job for the moment.
- Contact your creditor: In this case, it is best to seek the services of a credit counselor. He will help you draft a new repayment plan and you will contact your creditor and brief them on your current situation (if you have lost your job or now work fewer hours). Doing so will protect you from being black-listed as a debtor who didn’t respect the terms of repayment. If you are black-listed, you may not be able to easily get a loan in the future. Consider that deferring your payments could mean that you will be delaying your payment completion dates. So it is best to set the records straight.
- Spend only when necessary: Every time you spend, it might seem necessary, but is what you’re buying really necessary? We are just saying here that some excesses should be avoided because you might not be getting as much as you were getting before the outbreak of the virus. When your company is shut –down or you now work fewer hours, your earning is likely not to be the same and so, if you continue spending excessively, you are likely to go into debt sooner and that is simply compounding the crisis.
These tips has not being experimented on under any controlled situation and so, it is subject to individual decision. However, they are logically safe tips to consider during this period.