Coronavirus has wreaked havoc around the world and is continuing to have a major impact on people’s lives. As well as threatening people’s health, the impact of COVID-19 has affected livelihoods, businesses and earnings. Due to this, many people are experiencing more financial hardship than they were before.
If you want to safeguard your money during this uncertain time, use these savvy tips to protect your finances during the coronavirus outbreak:
1. Stay Calm
The COVID-19 pandemic has caught us all unawares, so it’s not surprising that people have been feeling unsettled and unsure of what to do. If you feel anxious or panicky about the situation, you aren’t alone. However, it’s important not to let rising stress levels impact how you manage your finances. Rushing to release equity, cash-out bonds or buying investments could be a bad move. Before making any major financial decisions, think calmly and rationally about the options available to you.
2. Examine your assets
Unless you’ve been keeping a very close eye on your finances in recent years, you may not know just how many assets you have or their current value. Gather together any paperwork and take the time to go through it and remind yourself what reserves you have in place. If you’re a homeowner, the equity in your property may be your biggest asset but cars, pensions and even jewellery can increase your wealth too.
3. Find out what help you’re entitled to
In response to the virus, the government has introduced various schemes designed to provide people with financial support. Some businesses are using the furlough scheme to pay workers, for example, while other people are entitled to claim Universal Credit. Many of the regulations governing existing schemes have been changed or relaxed due to the pandemic, so double-check what you’re eligible for and make a claim as soon as possible.
4. Consider taking out a loan
If you need funds for a specific purpose, taking out a loan might be a suitable solution. High street loans offer longer repayment terms, but payday loans can give you access to cash within minutes. Although you’ll need to consider the repayment terms of any loans. Borrowing funds to help safeguard critical assets could be a viable option.
5. Start a side hustle
Earning some extra cash is always a good idea, particularly if your income is in jeopardy. With many people still unable to return to work or socialising, you may have some extra time on your hands. Starting a side hustle can be a great use of your time and it can be a lucrative way to enjoy your hobbies. The internet allows you to connect with people safely, so use it to your advantage and start generating extra revenue.
6. Safeguard Your Financial Future
No-one knows what the long-term financial impact of coronavirus will be. However, it is likely to have far-reaching effects on almost every aspect of our lives. By taking steps to safeguard your finances now, you can protect your financial future and prepare for whatever our ‘new normal’ looks like.