So, you finally got all good with the language of money and savvy with saving. You opened your bank account, you made all your goals, you had it all planned out. Then the world went crazy and everything went bonkers! What do you do? What should you be doing?
First things first! Don’t panic. Every crisis has an end. The thing to focus on is how to get through. Instead of thinking of the worst-case scenario you need to make a list of what is in your control and out of your control. Now the deal here is, once you identify something that is out of your control, you have to let it go.
Then, once you understand the situation, you’re in, you need to measure the scope or it’s severity. Are the hard times a result of something you can control or something out of your control?
In 2020, the Corona Virus has affected nations and so everyone is going through a hard time. In a situation like this, a national scope can be to your advantage as everyone has to make adjustments. The likelihood is that any payments due will be deferred. However, in a different situation where the hard times are not affecting everyone, it’s advisable that you meet with your creditors and negotiate a payment plan that allows you a little room to bounce back and recover. Give yourself at least 3 to 6 months at least.
Finally, recalibrate. You will need to find out how much you have in savings, any money coming to you and reduce any money going out. Here’s how:
- Calculate the money that will realistically be coming to you inclusive of your savings
- Re-budget for lean times and try as much as possible to spend a combination of your income and only a percentage of your savings.
- Where you contribute to a larger pool of funds like a family budget or support members of your family have the hard talk about where you all can cut back expenses and what each person can do to spread the load during lean times.
- Start looking for opportunities to generate a new line of income and give yourself a target of achieving this by the end of your recovery period.
Money matters are never easy to deal with during hard times, but like all difficult seasons in life – it’s always better to go through it with someone else. What’s your strategy in hard times?
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