The Coronavirus pandemic has seen a drop in the economy which has forced employers right from government officials to make financial cuts. A larger amount of government finances are geared towards healthcare while employers are looking for better ways of salvaging resources to continue paying even though there is no work being done. So how do you handle your loss of income during this corona virus pandemic?
Rationally, all the measures taken by the government and the private sector employers may be stressful to deal with since most aspects of life are still constant. Your mortgage is still the same, the price of products in the supermarkets has not dropped, fuel and many more still cost that much; this is much likely to get to your nerves and added with the scare, more emotional turmoil. So, how do you manage the little you have, how do you survive without resentment? Here is the bright side of how handle your loss of income during this trying time.
1. Create a New Budget
Financial cuts and loss of income mean a reduction in spending, employers all over the world are trying to reduce expenses and the first step to it is to create a new financial plan. You will also have to create a new budget in order to combat finance cuts and here are the steps: gather every financial statement that you have, record all your income sources, create a list of all monthly spending and go ahead and break the expenses to variable and fixed.
Bank notes in dollar.
With all these in place, quantify the monthly income and expenses and make adjustments where necessary such as reducing the amount of supplementary products.
2. Prepare Own Meals
One thing that the corona-virus has put on hold is going out and enjoying the delicacies of the restaurants, hotels, or the cafes. To avert this, many hotels opt to do deliveries and which still is an option serving you right. However, with a financial cut, preparing meals at home is the best option of saving yourself of unnecessary food expenses. Besides, you have all the time, take an hour or two, and prove to your mum that you are a good learner when it comes to the kitchen. The family will definitely love it.
3. List for Shopping not a Shopping List.
My take; preparing a list for shopping means you only spend on what you need, any dispensable or impulse buying is cut out.
A customer using a Visa card.
A list for shopping has a limit, specific to standard price stores and is defined by the necessities you cannot do without, rather, for a shopping list, it contains all that you need and want at the same time which will make it difficult for you to leave out once you reach the store.
4. Just How Much Do You Need
Reassess your house, right from the living room to the kitchen. Let’s start with your refrigerator, the number of soft drinks, are they worth?, Maybe just a few are enough, besides, avoid cold drinks with the corona virus scare. The snacks, you can prepare them on your own, no need to purchase more. When serving food for yourself or the family, is the discarded quantity worth? Your subscriptions, maybe forego a little premium luxury and do the basic plans. Continue reassessing...
5. Implement DIY
A financial cut affects even the people who depend on you for a living; however, you should not strain to support them at full costs yet some of the tasks you can do by yourself. Your lawn, tending the flower beds, laundry, or cleaning your automobiles. Save yourself a few bucks by doing it yourself.
6. 24-Hour Buying Rule
In as much as a loss of income may also cut your lifestyle, there is the part of being human, and it's normal for a human being. Ok, some nice dress or gadget, you ever dreamed of it, then the pop-up, Amazon is offering a 40% discount, Alibaba is giving it for 35% less, sounds lucrative right? Use the 24-hour rule, give yourself 24 hours of thinking about the purchase, take your time to reflect on its importance, the urgency, and the long term benefits at different times within the waiting period. If the same interest and longing are still attached to the item, go ahead and buy it, you actually need it not just want it.
7. Century Shopping
Also the 30-day challenge. To someone, you may seem like a person doing panic buying, but it is only you who knows from deep down your pockets. Going bulk helps you plan for the days ahead, saves you the midweek crises of running out of home utilities, and keeps off the young one who will always want tag along when you are going shopping. Apart from avoiding movements our main aim is to save, 10 liters of cooking oil saves you a dollar or two compared to buying the 2 liters.
8. Cancel Some Subscriptions
Your gym membership and the online materials that you need most at work only are worth waiting till the end of the Corona virus pandemic.
An empty wallet
Having both Netflix and Showmax? With a financial cut, go for one, remember Fmovies, Crackle, Popcornflix, and YouTube are free.
9. Lower Your Water and Power Bills
Think of a way of saving a unit or two of your water and electricity. Go for showers and avoid the baths, stress to the young ones, ‘always lights off when not in use’ and cook using gas instead of electricity. With limited movement, put on light clothes that are easy to wash to save you the water, soap, and detergents.
Also do weekly cleaning of the house just to cut the water usage.
10. Communicate it
As a family or just to the self, communicate it out that you are having a financial cut, budget is thus changing and you need their support to go about it. May sound funny when telling yourself but it is worth acknowledging and being conscious of the reality at hand. For the family, you may need to tell them why ginger tea and coffee are better for the time than ice cream and soda; with the knowledge of the financial cut, the whole family will be compelled to attempt a measure to save or reduce costs whenever necessary.
In a wind-up, I agree it may be difficult to accept, and dealing with it may be very challenging, however, a loss of income is not meant to cut off your lifestyle and infringe your needs. It is just that the current Coronavirus pandemic is a toll on the economy and what you have at hand is actually the best your employer could afford to sustain you. Approach it with a positive mindset and employ the strategies above, you’ll find your new budgetary plans worth a second life.