It has been weeks since many governments imposed quarantine orders, and yet so many changes have happened, particularly in terms of money. Some people have found it hard to stick to their budget allocation.
While the idea of isolation is pretty new for many, others choose to see the good in everything. Well, right now, it is the only thing that keeps us sane (if anything).
If you are one of those that put off dealing with finances because it can be a tedious process, it is best to face them now. Use this time that you take a look at your finances. Here are some money hacks that you can try while you are in self-isolating:
Start Your Emergency Fund
It would be best to revisit your emergency fund with many shops closing down and the risk of getting sick at an all-time high. You probably know by now that some industries are now laying off their people.
Airbnb is among the biggest companies to take a hit. They retrenched as much as 25% of their workforce as their revenues went down. Fewer people are going on vacation, and that may not change for a long time. If you still don’t have yet, it is time to start an emergency fund. The amount should be at least six months of your monthly expenses.
Recheck Your Spending
Now that you have the time, it would be best to bring out your credit card and bank statements. Take a look at what items are making a bulk of your expenses. See which of them are necessities and which are indulgences.
From there, you can assess your spending habits and identify what you can do to change it. It would also be wise to check if a good percentage of your budget goes to investing.
Shop Around
Now that you have taken a look at your spending behavior come up with an alternative plan. For example, instead of buying signature brands for your work skirts, you can check out some online shops like Dainty Jewells that carry chic yet affordable options.
Consider Debt Repayment
One of the money-saving hacks that you can do while you are in quarantine is to optimize your debt repayment. If you have any loans that carry high interest, consider moving it to a 0% interest card or incorporating it with a personal loan.
Remember, though, that you must have a good credit score to accomplish this.
Request a Credit Report
It would help if you had an idea of your credit standing. This way, it will be easier for you to negotiate with a lender. Additionally, pulling a credit report allows you to check for accuracy or any fraudulent activities.
Accomplish Your Taxes
Sure, you may be worried about the current pandemic, but the health crisis is not an excuse for you to overlook your taxes. While the IRS moved the deadline, it would be best to file them sooner than later when you are most likely to forget them and pay a surcharge.
Talk About Death
One of the most dreaded talks that you can have with your family that involves money is death. While it may be considered taboo in some households, the pandemic highlighted that everything we have now is uncertain. The best way to deal with it is to become prepared.
Use this time to review your life insurance coverage. If you have a will, think about talking to your lawyer and update your will as necessary. This is especially important if you need to add or remove any beneficiaries.
The quarantine period should not be boring. You can look at the bright side and finally accomplish things that you have been putting off for so long. This way, you now have nothing to worry about when it comes to money.
