3 Ways to Avoid Financial Disaster during the Coronavirus Emergency

12 Jun 3 Ways to Avoid Financial Disaster during the Coronavirus Emergency

The huge impact of Covid-19 on our economy will certainly have repercussions on an individual level.

While we are trying to understand what Central Banks and governments will do, in fact. It becomes extremely important to prepare on a personal financial level to be able to withstand it. The shock wave that the economic crisis will inevitably bring.

Let’s see together 3 practical tips to save yourself or prepare for the worst.

# 1 Focus your budget only on the necessary expenses

Saving and not spending all the salary money is already a good practice when things are going well and today. Even if our income has not dropped dramatically, it is even more so.

The lockdown is already making several non-essential expenses more difficult if not impossible. Considering that this situation could continue for some time yet. The hypothesis of a new redefinition of one’s priorities should not be ruled out.

# 2 Save more money in the emergency fund

Even in good times, it is a good idea to have an emergency fund. Today obviously it becomes an even greater need because there is uncertainty.

If you have kept your income or have not suffered a drastic decline. You should continue to accumulate money, maybe even more extra money if you can.

If, on the other hand, you find yourself in a situation of need then it is perhaps the right time to put your emergency fund into action instead of getting into debt.

# 3 Work on your work Plan B

Stay in touch with your employer and colleagues if you are at home on layoffs.

If, on the other hand, you are employed but you sense uncertainty about the future of your business, try to understand where your sector is going. If and how you can look for a new job in case the situation changes.

What is certain today is that many companies will close. Reduce staff or completely change their business.

Be prepared for this scenario and try to be active as there will be no public aid to hold if things turn badly.

The same is true if you are a freelancer, a VAT number or if you have a service company: if you can’t work, work on Plan B anyway.

Today we live in what on My Business we call the “age of complexity” and however it goes it is clear that a greater commitment on our part will be needed to reprogram our life on an individual level.

Tips for investing have been excluded from this article because a world opens up: the investment section, on this point, can be valid support.

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