No one is accurate about predictions as to when COVID-19 will end. While the word is under a dilemma over the general way of life once this phase ends, people are more worried about the effects of this prolonged break on their finances. To ensure they have some savings to look forward to, everyone must navigate the financial crisis with patience and hope.
Let’s learn about a few tips that can help us better handle finances and protect our families in these tough times:
The first need of the hour in the current scenario is liquid cash. To ensure you have enough of it at hand, be extremely careful while spending. Use cards or online payment methods where possible, but avoid spending too much cash. You might have to monitor your expenses and essential requirements keenly.
Home loan revising idea
Although job security and financial sustainability are the only options everyone is looking at, in a way, this is a good time for people repaying home loans. Loan interest rates have recently dropped to historically low levels. Considering that you’d want to cut back on some expenses, revise your home loan terms. Look out for refinancing options with different financial institutions.
Capitalize and consolidate
Your existing debt in the bank could be burdensome for you, and staying on top of repayments might seem harsh. Hence, with the low rates at hand, you may try to consolidate your pre-existing debts like a personal loan or credit card. It is advisable to combine all the loans into one with a lower rate than the current one. This way, you might end up saving quite a bit.
Read – Effect of interest rate changes
Invest in insurance
You may find insurers offering a lower price according to the weight of risk on your home (property) or your car. You may also ask your insurer to negotiate your level of cover in case the situations have changed. If you already hold many policies with the same insurer, you become eligible for a multi-policy discount.
Protect your income
As hinted at earlier, secure employment is an only concern at the moment. Be on the lookout for insurance companies’ income protection policies, which might help if your income gets impacted because of reasons like poor health. Few insurers also offer the additional facility of covering involuntary redundancy for people suffering from the loss of jobs due to illness or injury. There is a possibility of buying a cheaper insurance policy as well. Ensure you have regular health insurance, too; otherwise, things might get worse.
To wrap it up
Eventually, every drop matters. Therefore even if you can save a minimal amount from one option, grab the opportunity to do so. You and your family will be at ease in case you take cost-effective steps today.