Salaries have been cut, debt is piling up, and the future often seems uncertain. We’re all feeling the pinch during these trying times. Your financial plans may have gone up in smoke because of the pandemic, but it’s never too late to start getting back on track even if right now all you can do is plan. The pandemic will end and life will start feeling normal again at some point. When that happens, you want to be prepared. No matter how dire things may seem, if you start working on your finances now you will automatically be in a much better position.

A lot of what is going on is out of your control, but let’s look at what is in your control:

  • Budget, budget, budget! A household budget is essential. Adapt your budget to your new circumstances to help you spend carefully and track your expenses. Work with what you’ve got, rather than feeling discouraged about what you don’t have.
  • Prioritise your debt repayments – pay what you can as soon as you can and communicate regularly with your creditors.
  • Put the spotlight on saving. Rebuild your savings as soon as you can so that you are not caught off guard if something goes wrong again. Every Rand makes a difference! You can increase the amount later.
  • If you can’t save, don’t despair! You are not alone! Instead, use some of the other suggestions in this article and focus on solutions that are more realistic for you right now.
  • Payment holidays have pros and cons depending on the terms set by the credit provider and your individual circumstances. If you have taken, or are planning to take, a debt holiday, find out from your credit provider exactly what is involved. This will help you to plan ahead.
  • Find out if you or any of your family members qualify for any grants from the government that you are not already receiving. There are several options available, like childcare and disability grants. Find out more on sassa.gov.za
  • If you are a member of a stokvel and can’t make contributions at the moment, talk to the other members about it. See your stokvel as a support group – if you work together you may be able to come up with solutions.
  • Stay calm and be sensible. Don’t make hasty decisions about taking a loan or cashing out your investments. Speak to a financial advisor before you make any big moves. It’s critical to think about the future impact of the decisions that you make now.
  • Large-scale economic hardship may have caused loved ones to ask you to loan them money. If you decide to give a loan to a friend or family member remember that you are not a registered credit provider and there is NO guarantee that you will get the money back. Consider the decision carefully. There are many other ways to spread the spirit of Ubuntu!
  • Be aware of scams. With so much anxiety about health and finances, people are vulnerable. Be wary of unsolicited phone calls, messages and emails and never give out your personal details.

Decreasing your financial stress is a way to stay healthy. Don’t let financial stress get the better of you.
If you need help with financial matters, contact LifeAssist to speak to a Financial Coach.

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Author: Tarryn Cox

Sources: Business Wire | My Money Coach

Date: 30 July 2020