How To Manage Your Finances During a Global Crisis
We are in the world of unknown right now. For the past six months we have been navigating life blindfolded and for me it is such an uncomfortable feeling.
We currently don’t have control over things that we would usually have control over. We do not know what schools will be like, what childcare will look like or what our jobs will look like.
The one thing that we can still control are our finances. It is more important than ever to make sure our finances are in order. There is so much fear about catching the virus, but what about the fear of medical expenses?
According to this article from Forbes, The 2019 TIAA Institute-GFLEC Personal Finance Index, an annual financial literacy assessment, a significant number of Americans lack the kind of personal finance knowledge that enables sound financial decision making.
I am sharing some tips to on how to manage your finances during a global crisis. These simple and effective tips can help in the long run and can benefit you during a global crisis or not.
Create an Emergency Fund
It doesn’t matter how much money you put aside, but do something. It is best to do an automatic transfer weekly or bi weekly into your back account so you don’t have to remember to do it. Think of it as an out of sight, out of mind technique but it is still being done.
Meal planning helps you buy food that is essential and not impulse buy food that you don’t necessarily need.
Use a Budget Planner
Using a personal budget planner helps compare where you spend your money. A calculator can help you change your spending habits to match your current income. Pigly offers over 50 different calculators to help fit your personal and financial needs.
Make Small Investments
Just because we are in a global crisis doesn’t mean it is a bad time to invest. Check out this article for ways to make small investments.
Communicate With Your Partner
Money can destroy a relationship. Keep communication open and always talk about your goals. You are a team and in this together. Set bi weekly or monthly meetings that just focus on your budget and expenses.
Right now, it is important for all of us to do what we can to protect our financial futures during such uncertain times. As a society, we always pulled through these difficult and historical times. This time will not be different.