Five Important Steps in Facing Financial Crisis During the COVID-19 Pandemic

The ongoing pandemic has hit many people to the bottom of their pockets. It seriously turned us upside down. Depression, anxieties, and suicidal attempts were mostly because of the financial crisis that each of us experiences. From the previous blog, we have learned the different reasons for our worries. In its roots lies the importance of money as we face this COVID-19 health crisis.

 Beneath within the chaos brought by the coronavirus, as long as we live, our hope still exists. It does not mean the end of us all if we have no savings or any emergency fund. There are still other ways on how to cope up with all the financial loss within this period. With the right advice and techniques, each of us can rebuild our lives after these difficult circumstances. Here are the following things you can financially do.

1. Reduce your Unnecessary Expenses

We do not know when this COVID-19 pandemic will end. Therefore, it is considered that this financial crisis will not end immediately depending on the coronavirus situation of the country. The best action is to reduce your own expenses, limiting it only to the essential items only. It will include reprioritizing your spending.

 Despite the ongoing pandemic, essential expenses such as food, rent, utilities, and insurance will continue. These are the things that you should put into the account in planning your budget plan. As you record all the essential commodities’ costs, you will be able to identify when you will be empty-handed. 

 As you stay within your homes, you should start thinking of ways on how to end the temptation of buying unnecessary items posted on the internet.

2. Start saving for your Emergency Fund

Some countries and areas have lifted the lockdown measures as it starts repairing from the financial loss due to the pandemic. In this period, work and jobs are gradually resumed to allow citizens and residents to earn. Therefore, it is an excellent time to start saving your emergency fund.

In every set of salary you earn, there must be a percentage of it where you put it in your savings account. Doing this regularly will ensure that you will have enough money to rely on in any situation.

3. If possible, pay your debts immediately.

As Nathan W. Morris once said, “Every time you borrow money, you are robbing your future self.” It may seem hard to accept, but this is true. Therefore, if you want to start repairing your financial status, the first thing to do is repaying all the debts you have made.

 This may not be an easy task especially if you many debts from many people. However, paying these debts requires you to follow the first step, and that is reducing your expenses.

(Sa panahon ng lockdown measures, marami sa ating mga kababayan ang siguradong nangutang ng pera sa ibang kabayan o sa mga kakilala nila dito sa Kuwait. Hindi naman natin masisi ang sarili dahil sa kahirapan na ating naranasan sa pagkawala ng ating mga trabaho. Sa pagbabalik ng ating mga trabaho, sana bawat isa sa ating mga kabayan ay magsimulang magbayad sa kanilang mga kanya-kanyang utang.)

4. Re-establish your budgeting or financial plan

The coronavirus health crisis caused a significant change in the world. Therefore, it also calls us for the replanning of our monthly budget. In planning one’s budget, you should consider your wants and needs. Our current needs today are changed, where the importance of sanitation is added within our essentials.

In budgeting, you must also put you or your family’s spending habits as a key factor. It is done by thinking about what are the items or payments you kept spending on. It will help you eliminate the non-essential items.

5. Use all available resources

The current situation puts us confined within our homes. At this time, each of us is tested to be resourceful not only in the financial aspects but in everything. Hence, it is essential to make use of available resources.

 This means that we can use technology to extend togetherness with our family and friends because of the lockdown measures. You may learn more skills through free tutorials available on the web. In this way, your period of quarantine will not go to waste. Always stay productive even if you are staying within your homes.

 All of these tips will certainly help manage all of your financial anxieties and worries. I hope that each of us has realized the importance of saving and budgeting during this COVID-19 pandemic. It served as a lesson for us that financial literacy and planning is crucial.

(Para sa mga kababayan ko dito sa Kuwait, mas mabuti kapag na-apply niyo ang mga tips and techniques na ito para makabangon tayo sa pagkabaon ng utang at sa mga pag-alala sa ating pinanasyal na pangangailangan. Para sa mga taong nangangailangan ng pinansyal na tulong, maraming mga organisasyon ang handing tumulong po sa inyo. Huwag natin ikahiya ang paghingi ng tulong sa ibang tao sa panahon ng kagipitan. Dahil sa pamamagitan ng pagtutulungan ng bawat isa, tayo ay makakalagpas sa pandemya na ating hinaharap ngayon. Mabuhay kayo aking kapwa kabayan!)

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A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books.  Read more: About DiaryNiGracia