There is no doubt that the COVID-19 Pandemic has probably been the greatest challenge to humanity ever. Countries all over the world, have seen millions of lives being lost because of the ill-effects of the virus.
There is no greater humanitarian, economic, and social disaster in recorded human history than the pandemic.
As we are slowly seeing a recession of cases and in the potency of the virus the world over, people have started to plan for life after the pandemic. This planning has been focused in a major way on personal finances.
In this article, we are going to help individuals and families plan their personal finances. This will enable them to be prepared for unforeseen situations, which may or may not arise in the future.
Why Personal Financial Planning is important in a Post-Coronavirus World?
As soon as the pandemic hit, millions of businesses shut down all over the world. This resulted in the loss of livelihood opportunities all over the world. In the absence of jobs and salaries, daily sustenance became a major issue for the world population.
If any of the family members were diagnosed with the infection, the astronomical prices of standard healthcare were beyond the reach of millions. This resulted in the loss of lives and other serious problems.
People who had planned their personal finances well were able to sustain themselves, pay for decent healthcare. Their savings were critically helpful in allowing them to pay for food, bills, and medicines during the lockdown.
List of 5 Ways to Plan Your Personal Finances in a Post-Coronavirus World
- Start creating an Emergency Fund-
This is different from your normal savings fund. The emergency fund is going to help you in situations like a pandemic or even a war. You do not have to invest the same money you are doing for a savings fund, but rather a smaller amount. You need to be disciplined when it comes to creating the emergency fund and pay monthly amounts to grow it.
- Clear all your Debts as soon as possible-
According to financial experts, individuals or families should clear all their debts as soon as possible. This means clearing all the credit card outstanding, personal loans, and other financial liabilities. You can always look to debt consolidation for licensed moneylender to help you restructure your loan payments in easy monthly interest rates to help you clear your debts.
- Save Aggressively for the Future-
If you had one savings fund before the pandemic, increase the number to two. Expert financial planners state that individuals and families should end up saving fifty percent of their total monthly earnings. While this is something, which might be difficult, an attempt should always be made to reach as close to the fifty percent mark as possible.
- Change your Financial Behaviour and Attitudes-
According to experts, financial planning is all about having the right attitude and behavior. This means that habits like borrowing and lending money should be curtailed at the very start. Unnecessary spending on wasteful expenditure should be curbed by every member of the family. This will allow you to ensure the maximum amount is being utilized for savings.
- Open up a Second Source of Income-
Being dependent on just one salary check on a single source of income is not financially healthy. If there are problems and your only source of income gets affected, what are you going to do? This is why you should always keep an option for opening up a second source of income. This can allow you to add these cash flows into your savings and emergency fund.
The Final Word
Many individuals who were not financially prudent have suffered a rude shock because of the pandemic. However, the positive thing is that not all is lost. If you make up your mind and start planning your personal finances right now, you will start feeling confident. No one saw the Coronavirus pandemic coming. This is the time that you need to start preparing for the next one if we are unfortunate enough to experience such an event again.