Tips to Stay Financially Stable

The pandemic has changed everything in our world. Many people are overwhelmed and struggling. Depression and anxiety are at an all-time high. Many are unemployed and struggling to keep up with their bills, which can make everything even more scary. Financial freedom seems to be so far away.

However, just because the world seems to be in a panic, doesn’t mean that you have to be. Here are some tips to stay financially stable during Covid.

Now is the time to start a budget (if you haven’t already). There is a reason why many people budget their money. It helps them to know what is coming in, what is going out, and where the extra is used.

It also helps with financial stability because you will put money aside each month for everything that you need, including tax bills and other large bills that may be coming in. Instead of panicking, you have the money already set aside to pay for these large bills (and some extra expenses that you may not have seen coming).

When doing so, make sure that you build up an emergency fund. All financially stable people have an emergency fund. It is recommended that you have at least enough money to live off of for a few months, in case you are laid off.

However, this can also keep you from reaching for your credit cards when something unexpected comes up, like your washing machine breaks, your car needs to be repaired, or anything else that may come along.

Continue to pay your bills. If you are able to pay your bills, please do so. Do everything that you can to continue to pay them on time every month. Now is not the time to start getting behind on payments (unless you aren’t able to keep up).

If you are struggling to pay your bills, talk to the financial institution. Many lenders are offering assistance for those who are unable to pay their bills because of the pandemic. You may be able to get a grace period so that you can pay what you can and when you can, without it affecting your credit.

Your creditors would rather get what they can, then get nothing. They also want to know that you are struggling instead of waiting for your money to come in. It is much better for them to talk to you about it, then think that they have to take action against you.

Leave your money in the bank where it is safe. Many people are panicking and are taking their money out of their financial institutions while they still can, just in case. However, the truth is that your money is safe in a bank and financial institution. In fact, your money is federally protected. You can take action if your money is taken illegally.

If you are serious about becoming (or staying) financially stable during the pandemic, there is nothing stopping you. The best way to get started is by having a budget. This will help to make sure that everything that needs to get paid does before you use that money for other things. It also helps you save money each month for bigger items so that you don’t have to reach for your credit cards.

Another way to avoid credit cards is to have an emergency fund. This will help you in case you find yourself unemployed, or your car breaks down on you. You also should talk to your financial institution if you are struggling to pay your bills. They may be able to help you get through this rough time, without worrying about ruining your credit.

Previously published on Medium and/or Newsbreak.