7 Personal finance tips after COVID-19

Posted on Aug 5, 2020 by Nonhlanhla

Rateweb | South Africa

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Not everyone has access to a financial advisor or has knowledge enough to guide them through economic hardships.

Covid-19 is somewhat a huge challenge to the medical society and as a result economies are suffering. No doctor or medical society should be blamed for this outbreak. The virus is sophisticated and new.

While researchers are doing their best to maintain and reduce the corona outbreak, what should we be planning on now, for life post Covid19.

CoVID19 stats

Whether as a company or an individual Covid-19 might be burdening you financially. Maybe if you are only a dealer in essential services you might not be feeling the heat.

The lockdown restrictions are making it hard to do business as usual. Working is hard especially for those who have to work from home or use public transportation to go to work.

Covid-19 might be here forever and might end up being treated like any other virus. However, after finding a solution to this big problem, where do you go next?

What will the economy be like in South Africa? How will you keep up with the down turning economy?

These are the questions that need answers to and how you go about answering them is up to you. This article will, therefore, help you solve your financial problems after Covid-19 taking into consideration the 2008 economic collapse effects and solutions.

1. Think of Job Stability instead of trying to find another job

If employed try staying at your current job, this will bring a great sense of stability. Moving from one job to another can create problems and stresses that are unwanted. You will need to make new friends and impress your new boss. The environment will be new to you and you might not like how things are done there.

Staying at your current job will create a sense of security with known competition. You are already familiar with your working environment, the company structures and other relevant employees.This makes your current job more comfortable than having to look for a new one. Being defensive will help you weather the impact done by Covid-19 to your finances.

Having to leave your job could only result in you causing more harm than good to your mental health or even your finances.However you should only consider leaving your job when you are in an abusive work environment, this can allow you to be more productive both mentally and financially.

2. Start a savings account

The Corona virus novel has led to a great number of people realising the importance of having to secure a savings account.Savings have proven to be a top priority in every one’s life, to safeguard us from the unknown future. Hence you need a savings account to start saving money for the unforseen.

Your savings account should yield interest on a monthly basis. If you are planning on having fixed deposits in your savings account, then your account will grow gradually. Compare savings accounts that yield better interest and stick to the one that works for you.

Savings will not only help you to cover costs during a pandemic but also if you ever get to loss your job . The hardest thing for a job seeker is to job hunt without a single cent. You will need data, airtime, money to go for interviews and money to start working if you get employed.

3. Start a side hustle

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While at your job you can start a side hustle. There are dozens of side hustle opportunities that you can take advantage of while working full- time. This will create an extra income you are in need of to jump out the coronavirus damages.

You can use some of your income to finance your side hustle. For instance, you can find someone to drive your car for Uber or Taxify while at work and pick you up after work. Start a blog if you are an exceptional writer and write about the things you like. Register a trading account and start trading Forex part time. Alternatively, you can rent out part of your house. All these can generate an extra income for you.

The opportunities to make secondary income are endless. However, you need to be careful. You need to plan and know the losses that you can incur when starting your side hustle(s). Just because there is an idea to make money it doesn’t mean there are no risks involved. You wouldn’t want to lose your money especially after suffering financially from Covid-19.

4. Get yourself and family insurance and medical aid

The South African public health may not be sufficient enough to help you from other illnesses. You need to get yourself and your family a medical aid that will cover you from severe illnesses. The fact is, private treatment is better than public health treatment and your family needs the best that you can get.

Be responsible for everyone in your life and get life insurance. The world is full of uncertainties that cannot be ignored. Some of us do not have any generational wealth that our loved ones can depend on should we die. Life insurance is the answer to ensuring that your family lives a good life even after your death.

Paying for medical and life insurance can seem to be financially consuming. However, these financial costs come with great future benefits that will save you a lot of money and unnecessary struggle.

5. Look for emerging industries

Many innovative ideas came with the 2008 economic collapse. Whatsapp, Nerd wallet, Uber and other businesses were founded during this period. Maybe it’s time for you to think out of the box and try to understand the future. A better starting point is to understand technology and where it is going.

New industries will emerge, be artificial intelligence or any other. The truth about it is that, those with competent skills set will earn more and be in demand. Learn new skills or upgrade those that you already have. The market place will be tough and you will need to outshine everyone to get a big paycheck.

As times are changing ,for you to be earning as much as you do now, you need to scale up your skills. If you are a truck driver at imperial logistics ,equip yourself with new truck technology and know best routes.

6. Limit borrowing

Borrow strategically. Credit can be a headache if you are borrowing for the fun of it. Sometimes you don’t need to take credit but buy cash. After Covid-19 you will need to save the little that you have. Borrowing more will limit your savings and deprive you from securing a better future.

Don’t indulge in impulsive buying and spend only where necessary. We might have gotten payments for holiday loans and other credit this time but however it might not be the case in the future. Know what you can afford and stick to your budget.

7. Create a monthly budget

Budgets might seem too serious but they work. Create a budget for you and your family. A budget should fulfill the SMART criteria. This means that your budget needs to be sustainable, measurable, attainable, relevant and timely.

In your budget you will be able to include all your spendings and income. It will be easy for you to determine how much you are left with every month. The money left out can be used for savings and investments.

You need to stick to your budget at all times . Going out of budget will create unnecessary debt resulting in unfulfilled objectives.

Conclusion

Your financial health is a serious matter and needs to be planned for. After Covid-19 you need to ensure that you are secured for the future and beyond.

Keeping your job is a good start to staying financially healthy and to start planning ahead. Monitoring your spending can keep you out of debt which will in turn allow you to save more.

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