As if the virus itself wasn’t enough to send you into an anxiety tailspin, most of us are also worried about how to survive the coronavirus financially. This pandemic represents both a health and a financial crisis for the entire world. For ideas on how to manage your money during the pandemic to survive the coronavirus, keep reading.
Create a barebones budget
If you are in or headed for a financial crisis, create a barebones budget to stretch your savings.
- Practice minimalism: Eliminate all nonessential spending. Cancel entertainment subscriptions and make sure that you don’t have automatic subscriptions to anything that could be draining your bank account without your knowledge. Avoid online shopping and seek free versions of apps and entertainment to keep yourself occupied during your downtime. Consider taking advantage of quarantine offers like free courses on Coursera to keep yourself busy.
- Use your time wealth to save money: If you normally save time by eating pre-made food and ordering take out, use the extra time you have on your hands to save money and instead cook your favorite meals from scratch.
- Save money on groceries: Stretch your grocery budget further by buying fresh foods and staples rather than pre-packaged snacks. Reducing your intake of expensive junk foods can even help reduce your stress.
- Budget for new essentials: Face masks, sanitizer, and cleaning supplies as recommended by the World Health Organization and the Center for Disease Control. As your budget for groceries, make sure to take into account the cost of delivery if you are now having your groceries delivered to avoid supermarkets. Budgeting for essentials wisely is key to helping you survive the coronavirus financially.
- Save what you’re saving: Although you may have to budget for new expenses, you may also save in other areas of your budget. For example, you probably no longer need to spend as much on transportation. Instead of spending that money on other things, save it. Funnel that extra money away into your emergency fund rather than online shopping.
Organize financial obligations
Because of the economic crisis that the coronavirus quarantine is causing, many countries have developed measures to protect people in financially-vulnerable situations. Some governments have prevented landlords from evicting tenants even if they can’t pay rent, others are offering unemployment benefits, and some have prevented lenders from collecting on loans or debts.
Since these economic measures vary so much from one country to another and may change quickly, it’s important that you review your local regulations. Here are some areas to investigate:
- Housing: See if your government has frozen mortgage obligations, home loans, or evictions.
- Unemployment benefits: Check with your employer, local, state, and federal government to see if you can benefit from unemployment packages should you get laid off, have your hours reduced, or be let go altogether.
- Stimulus packages: In the US and some other countries, legal residents who make under a certain level of income are automatically eligible for stimulus packages. These packages can be key to helping you survive the coronavirus financially.
Be vigilant for coronavirus-related scams
Unfortunately, some folks are seeking to take advantage of generalized panic and confusion to make money. There are a number of a number of areas these scams manifest themselves, so be on the lookout to avoid wasting money so you can survive the coronavirus financially.
Bogus cures
Across the world, pseudoscientists and clever marketers have come up with phony but convincing cures and preventative measures for the coronavirus. From herbal potions, vitamin-C infusions, essential oils, and medications infused with harmful substances like bleach, plenty of people claim to have the miracle cure.
Remember, the World Health Organization and the Center for Disease Control are the best sources for medical information about how to care for you and yourself. Don’t waste money on ‘miracle cures’ that have no scientific basis and which could end up doing more harm than good.
Financial help scams
Under the guise of helping you receive financial stimulus help, some shady third parties prey on ill-informed consumers in order to get their social security numbers and other sensitive financial data. Remember to discuss the process to access local and federal help with trusted financial advisors 一 don’t be a victim of financial fraud on the internet. This is key to helping you survive the coronavirus financially.
Aside from surviving the virus itself, many of us are concerned about how to survive the coronavirus financially. Managing your money well during the epidemic is just one of the numerous challenges that we face in this pandemic.
For more ideas on how to help your finances survive the coronavirus, check out the rest of the Academy financial education library.
