Keep in mind that once the Covid-19 crisis is over, extraordinary financial challenges will bear down upon us upon the resumption of economic activities.
Although the government will pump us with financial aid to see us through during the shelter-in-place orders, they came from federal reserve funds that have to be recovered in due time by way of taxes. The more pressing issues though will be the assortment of bills that we were allowed to defer payment, because many of us lost our regular sources of income while staying sheltered-in-place.
Remember, the amounts due are not going away for good, although interests and penalty charges may have been forgiven. They are obligations that remain payable and due at the soonest time possible, once the economic activities start rolling and the financial stresses start tolling on affected businesses.
Still, as Scott Hannah, President of Credit Counselling Society advises, part of one’s undertaking to manage money and financial obligations, is to keep our physical and mental health sound and intact. That is very true during this time of health crisis, when a novel coronavirus is spreading like wildfire across countries.
Rather than listen and pay heed to public speeches that give false hopes in order to boost the health of the economy, listen to health experts instead because they are more concerned with the general public’s health and safety.
Practical Money Management Tips to Take During the Ongoing Covid-19 Crisis
Start looking and applying for financial assistance and relief offers for which you are eligible. As of the moment, millions have already sent in applications.
Although it may seem that you have excess money, set them aside. You might be forgetting that most of the excess funds are money that you ordinarily use to pay for utilities, house rental, mortgage payments and/or other household bills for which collection efforts have been temporarily deferred.
Aim to reduce spending instead of splurging on unnecessary expenses in case a windfall like advance bonuses or tax refund claims come your way,. Most online businesses will ramp up their marketing strategies with limited offers of great price slash downs, free shipping, or upgraded services. Although you can be easily enticed to indulge as a way to chase away your shelter-in-place blues, try not to be overwhelmed by every offer.
To help you in your resolve to curb expenses during the Covid-19 crisis, it would be best to create a shelter-in-place budget to serve as your financial guideline. Using a spreadsheet or a page of your current budget ledger notebook, itemize and list down the expenses that you are currently incurring or paying for, while sheltered in place. Compare them against expenses you ordinarily incur and pay for during normal times.
Take note as to which expense you overspent, and from which expenditure, you yielded savings. Doing this will give you a clear basis for deciding which expenses need curbing, in order to increase the money that you have so far saved.
Check if the credit card companies allowing you to defer payments, are also waiving interests and penalty charges due for that period. If you really cannot pay them at the moment, you are at least aware that your future credit card billing after the Covid-19 crisis, will be much higher. The next best step for you to take is to refrain from using your credit card during the crisis, whilst try limiting the amount of any additional credit purchases you make
If at worst you incurred substantial medical bills as a result of the Covid-19 epidemic, which will surely lead to bankruptcy, it would be wise to get in touch with a bankruptcy attorney san diego residents would recommend