While
this current pandemic has put the spotlight on the global health
system, fewer people have been focusing on the implications that this
disease has for our collective financial health. Indeed, with deaths
and hospitals justifiably making the headlines, the economic effects
of the lockdown and the reduction in trade that it’s produced are
out of focus at present. This article aims to change that, giving you
four financial tips to help you boost your financial health during
the lockdown.
Savings
Now
is the time to make some savings in your personal finance – and, if
you’re a small business owner, to make
those savings within your company accounts, too. If you can make
savings now, in a period of sustained low economic activity, you’ll
be able to go on a miniature spending spree when the lockdown
officially ends and the economy officially restarts. If many
consumers go on this shopping spree, the economy will kickstart with
a bang, and everyone will be wealthier because of it. So, play your
part – and protect your financial health at the same time – by
saving cash during this period of reduced economic activity.
Access
Cash
While
the advice to save cash is sound, it’s not applicable to those
people who are currently earning very little and who are worried
about the total collapse of their business. For such individuals,
every week that we are in lockdown means that their small businesses
and their financial health teeter closer to the edge. For these
people, the ability to access a short-term loan can be incredibly
valuable and important. That’s why Fast
Money Car Title Loans can be useful, as they use the value of
your motor vehicle as collateral against a quick loan to help you
boost your finances in the short term.
Making
a Plan
The rest of 2020 is likely to be severely
disrupted by COVID-19, and this disruption is likely to continue into
2021. As such, you and your company will need to understand how you
can best evolve and adapt in order to continue capturing market share
and offering a valuable product or service to your customers, even
while they themselves are in difficult financial times. All of this
means taking a sweeping overview of your company and making changes
to prices, to stock, and to your marketing strategy in order to be
able to survive the ‘new normal.’
Budgeting
Alongside
this change in your business output should come a change in your
personal and business
budgets. Without restrictions on how much you’re spending,
you’ll end up outpacing your earnings with your lifestyle spending,
which will lead you into difficulties within a few months. It’s far
better to accept that times are tough and that you’ll have to make
subtle budgeting changes to your life in order to keep financially
healthy. The sooner you make this new plan, the sooner you’ll be
able to guarantee financial health for in the medium term.
These
four tips will help you adjust and survive in the new economic
conditions that have been handed down by the COVID-19 pandemic.
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