SURVIVING THE PANDEMIC FINANCIALLY
Talking about money is difficult for many people even in normal circumstances.
“During periods of uncertainty, many are dealing with stress that could make a difficult conversation even more challenging.”
Many individuals’ and families’ incomes have decreased or been eliminated altogether as businesses shut their doors for a season.
During periods of economic uncertainty, people are bound to feel more anxious about their finances.
How to cope with financial stress and anxiety during the coronavirus pandemic… If you are struggling financially, in the meantime, here are ways to manage financial stress and anxiety.
- Accept the current situation- A lot of anxiety stems from not knowing what will happen regarding the coronavirus, or how long things will be different. The first step to overcoming that anxiety is accepting that your life is going to be different for a while and focusing on tasks you can control. Even for well-off people, worrying about money is common in times of uncertainty
- Adjust your finances as needed- You should take stock of how your finances look now. You want to be as prepared as possible for the potential ways the pandemic could affect your financial situation. Making changes now can help you protect yourself.
- Review your budget- Does your budget still make sense for your current situation? If not, you might need to adjust it. And if you don’t already have a budget, now is the time to create one
“You can’t save money if you don’t know how you’re spending your money”
4. Identify your financial priorities- Now is the time to get your financial priorities in line.
This time is not a time to start buying things you don’t need — aso ebi, clothes, electronic gadgets, wrist watches, etc — -Where are you going in the first place? Your spending should be on necessities like Foodstuff, gas, Fuel, Data, maybe subscribe to one of these movie apps (you can pool with friends) so you can share login details.
Cut every other subscription you have — that automatically takes from your bank account.
Thankfully, rents in Nigeria are paid yearly unlike some other part of the world where rents are paid monthly, in fact weekly.
To get you started, here is a recommended list of financial priorities:
Giving. I know that giving seems counterintuitive at this point, but the Bible tells us we can trust God with our financial first fruits. Repeatedly, the Bible shows us that generosity is our financial priority, even during difficult times. So whatever God gives you, take a portion of it and give it away, making the church your first place of giving.
Food and health. Your next financial priority is health, which includes food. Take care of your health and the health of your family.
Utilities. Since you have a roof over your head, ensuring the availability of water, electricity, and gas are your next financial priorities
5. Reassess your goals- During this trying time, “it may be necessary to reassess your financial goals,” Aspirations that may have seemed like a priority just a few months ago may need to be put on hold.
Because of #COVID19, there are some things you can no longer do. Some plans that can no longer be implemented. You need to accept it. That thing has died. Let it go
6. Create an emergency fund- Do you have any money set aside for a rainy day? If you have been inclined with financial management, you must have heard of emergency funds — this is the kind of rainy day that was spoken about. If you’re worried about finances, establishing an emergency fund should be your first step. Typically, experts say to have three to six months’ worth of living expenses. Yes, we should have been saving for times like this; it would have been of great help knowing that we might be out of a job.
7. Keep some cash on hand- If the COVID-19 outbreak gets significantly worse, it’s not inconceivable that we’ll have full-scale shutdowns in some areas of the country. This may make it more difficult to get cash if you need it, especially if bank branches close. It could be smart to get a reasonable amount of cash and keep it in a safe place in your home.
Cast your mind back to the things God said before COVID-19. He is incapable of lying so those things still hold water. They will just be implemented in completely new ways. You will need new structures and collaborations. Be open.
Stop fretting and chewing your mind in frustration. You can’t change COVID19. Stop putting your life on pause desperately waiting for it to go away. Be open to new ways of doing things. Take a leap of faith.
- Lean on your community- Get your church to organize online fun meetings, join online classes, connect with your creative friends. Get to know your next-door/compound neighbors. Make new friends online. Think about making your business online, learn new skills, attend training online, Have a routine daily.
- Remember that this too shall pass
A final thought: The most important thing to do now is taking a deep breath and resist the urge to panic. Panic leads to irrational thinking, which leads to poor financial decisions.
