Financial stability is a feat that everyone aims to accomplish. Even though monetary success may mean differently for each individual, it’s safe to say that attaining it requires a good amount of savings. But, even if setting money aside sounds simple, various distractions actually make it a very challenging task.
Aside from handling monthly bills and dealing with all sorts of expenses, tricky financial scenarios hinder many from attaining financial wellness. With the world battling the health and economic consequences of the COVID-19 pandemic, it is more important than ever for people to make better decisions with their money to stay afloat.
The first step to maintaining financial stability during this crisis is to learn the value of discipline and frugality. Learning how to distinguish your wants and needs will help determine what your priorities are and keep you comfortable even after this public crisis has passed. Below are some tips to guide you on how to be financially smart:
1. Prioritizing necessities (e.g., food, water, electricity, internet, shelter)
As you budget your income accordingly, put your essentials first. Since you’ll be staying at home most of the time, being able to pay for food, water, internet connection, and shelter without any complications will provide so much comfort and convenience.
2. Letting go of “unnecessary” online shopping
There’s no doubt that online shopping is a coping mechanism for many. Even though buying new products can help you stay calm during this crisis, it’s important to be realistic when managing your finances. If you overspend on luxuries, you’ll eventually end up walking a financial tightrope.
Instead of splurging too often, you should place your money on more important things. Your future self will thank you if you start placing your money on an insurance plan or other lucrative investments.
3. Choosing to prepare food at home
Living in a pandemic or not, it’s easy to fall into cravings and order food for delivery or to take home. But, if you’re looking for a simple way to curb your expenses (and eat healthier, too), preparing food at home remains one of the best ways.
Aside from being a safe and practical option, cooking your meals can also be a very valuable activity. When you’re under home quarantine, it’s a great way to pass the extra hours you’ve gained. It allows you to bond with other people in your household and gives you a lot of flexibility with your meals.
4. Internet is now vital
Now that the world has turned digital, having a stable internet connection is now a necessity. If you are fortunate enough to continue working from home, having a good plan from a reliable internet provider will allow you to handle daily tasks at your convenience.
Other than help you communicate with clients and send essential files seamlessly, investing in a reliable internet provider will also keep you entertained and informed about the current situation in your area.
5. Paying attention to your health
Invest in yourself and pay attention to your health. Since a COVID-19 vaccine is still commercially unavailable, practicing social distancing and adopting good hygiene remains as the most reliable preventive measures. As you take on a vigilant mindset to battle against this virus, it’s important to keep that same approach when it comes to your overall health.
Having the right amount of exercise and following a balanced diet won’t only give you comfort as you grow older, it will also help you avoid costly medical bills along the way. When you go on your next trip to the grocery, opting for healthy choices will keep your financial and physical health in check.
6. Building an emergency fund
The most important thing that the COVID-19 pandemic has taught us is that building an emergency fund is an absolute must. Even though you may be earning a reasonable sum from your monthly paycheck or your business, understand that life is unpredictable and will suddenly throw you off-course.
If you want to gain more flexibility when faced with a financial dilemma, building a good emergency fund is the best way to get some breathing room.
Maintain Your Financial Stability
With the right approach and mindset, you’ll be able to overcome any financial dilemma that’s thrown at you easily. Keep these tips at the top of your mind to make better choices with money and take bigger steps towards financial wellness.
In case things become too tough to handle, you can always apply for a loan to best solve your financial dilemma. If your company suffered losses from the economic consequences of the pandemic and is struggling to get back on its feet, there are a lot of financial options for you to explore, such as applying for business loan at Esquire Financing, Inc.