The pandemic has been going on for more than a year. None can predict how much longer this pandemic will last. One of this pandemic effects is the potential for unhealthy financials and financial planning that has been made may not go according to plan. With all the uncertainties and various risks that can occur during a pandemic, we need to be more careful in managing our finances. Then, what should be done to get around this? ABDA Insurance provides 6 tips for managing finances during the pandemic.
- Create budget priorities and record every expense
Start planning by making a financial budget. This is important so that you can predict the amount of budget needed every month, week, even per day. In preparing a financial budget, prioritize expenses for basic needs, paying taxes, installments, savings, and insurance. Next step, record each expense so that you can evaluate whether the expenses are in accordance with the financial planning that you previously made. Thus, you can use this evaluation in preparing the financial plan for the following month.
- Pay off the unproductive debt
If you have sufficient cash reserves, pay off any unproductive debts first, which is usually short term but has high interest rates. For example the installment on a credit card or any installments without a credit card. Allowing unproductive debt can disrupt your financial plan in the following months. If you have to take a loan, make sure it is the productive debt, for example buying property with a mortgage loan.
- Emergency funds
If you still have a steady income, you should spare an emergency fund outside your savings. You can set aside 10% of your income to save as an emergency fund. The amount of emergency fund depends on your monthly expenses. For those who are married, you need an emergency fund at least 6 times of your expenses per month. Keep in mind that an emergency fund is different from savings, investment, or insurance. Emergency funds must be stored securely, easily accessible, and easily disbursed whenever you need them.
- Take advantages of Discount & Promo
To save expenses, you can take advantages of the discount and promo offered. For example, you can take advantages of discount or cashback offered during Ramadan promo. However, make sure you are still wise in taking advantages of discount and don’t become impulsive in shopping. Even though it’s cheaper, you certainly have to adjust to the financial budget that you have previously created. Apart from that, you can also take advantages of free activities such as webinar or online workshop to improve your skills. You can also self-actualize at no cost by reading the various tips and articles available on the internet.
- Get additional income
You can try several ways to get additional cash and saving. For example, you can sell your unused personal items through garage sales or promote them on your social media or through online marketplaces. If you don’t have the initial capital, you can also become an online dropshipper. You can also earn extra income with additional job besides your regular job, for example being a freelancer or an insurance agent.
The pandemic since the beginning of last year has made many people aware that financial preparation and risk management are very important. Therefore, you need to have insurance as part of your financial and risk management. Keep in mind that risks can happen not only to your health or to your family. However, there is also risks that can happen to your vehicle or property. Choose insurance that does not burden your financial condition and provides the right benefits according to your needs.
It is very important to implement sound and careful financial management, especially in a pandemic like today. At first it might feel difficult and hard, but if you do it regularly, you will get used to it and get the benefits. Hopefully with the tips that have been given, you can be wiser in managing your financial planning. If you are still confused or have questions about insurance as part of you financial planning, you can directly contact ABDA Insurance at (021) 280 90111 or via ABDA Insurance WhatsApp Business at 0817 001 0022.