Many of us have suffered serious financial issues as a result of the global; COVID-19 pandemic, and although the end is not yet upon us, it is starting to appear in our vision, which means now is as good a time as any to think about the recovery of our personal finances and what we can do to aid them along.
With that in mind, here are some ideas that may help you to recover your personal finances post-pandemic:
Rethink your budget
If your finances have changed significantly due to the pandemic, then you’re going to want to redraw your budget taking into account the new figures you’re working with. Doing this will not only help you to draw up a path to a better financial future, but it will also enable you to get a clearer picture fo your financial dealings, and potentially show you how you can make some savings. These days, there are numerous apps that can help you to create a storing budget, so take advantage of them if you are struggling to do it alone.
Check your entitlements
There is a lot of government support out there for people who have been affected by the pandemic, and of course, schemes like SUV Motability Offers and tax credits that were in place long before the pandemic hit. If you want to get your finances in place, it makes sense to check what you are entitled to and apply for it before any deadlines elapse. Even if you weren’t eligible before if the pandemic has hit your earning power, you may be able to take advantage now and doing so could give you a little extra to work with each month.
Rebuild your emergency fund
If your emergency fund has been wiped out by the pandemic, as is the case for millions of people worldwide, once you start to get back on your feet, you should make it a priority to start building it up again, even if you can only save a small amount each month. Why? Because an emergency fund is a safety net. It can get you through a range of financial emergencies from job loss to the breakdown of your washing machine and things like that. Obviously, if you have debts to deal with, you should prioritize them over building savings, but if you can do this, you should.
Deal with debts
Once debt holidays and things of that nature come to hand, you’re going to need to deal with them again. If you’re struggling with this aspect of your finances, get in touch with your creditors to see what they can do, some will agree to freeze interest or lower your monthly payments which will give you some breathing space. You may also want to consider consolidation loans or switching credit card debts to zero interest cards so that it’s easier to keep on top of them, then focus all of your efforts on paying them down as fast as you can.
Once you’ve done thew above, you should be in a better place financially, and it’s time to start thinking about planning for the next financial disaster in your life!