Coronavirus is gaining strength to push the world’s economy backward once again. This will have a direct impact on your budget so learning a few tips to improve your personal finances becomes mandatory. It will prevent you from getting swayed in the tides of covid and act as a backbone of your family in times of need.
Because external help will diminish once the virus is at its peak. Only you can save yourself but we are here to help you plan a blueprint for managing your money. Here we go!
How To Budget For Covid-19 Response?
1. Use Technology
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Online banking apps are of great help for those who don’t like tracking budgets manually or don’t have time for it. Money View, Goodbudget, Monefy, Realbyte Money Manager, and several more such applications serve the best management facilities. They have almost similar features like:
- Payment categorization and let you analyze where you are spending most
- Prepare monthly and weekly budget summaries
- Track your bills and send notifications for timely payment
- Allow smooth transactions
- Manage all your debit and credit cards on one platform
- Protect your transaction details via passcode
Some apps also offer the best discount deals to save more on transactions
Also Read: How to Transfer Money Using UPI Without Internet?
2. Analyze Lifestyle Inflation
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External inflation directly affects your lifestyle but you have no control over it. What you can do is take control of your lifestyle. In other words, you should not double your expenditure in case of salary increment. This will not bring any benefit to you so be wary about the expenses and spend wherever necessary.
3. Do you Want It Or Need it?
The most important difference to understand while managing a budget is this. You may or may not need a luxury car but still buy it. On the other hand, you may skip a visit to the doctor and take medicine at home. The latter one is your need so skipping it will cost you much whereas you can wait for a long to get a car.
Also Read: 5 Financial Goals You Should Achieve By The Age Of 30
So, understand and prioritize your needs.
4. Don’t Take A Loan In Haste
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Banks at the time of pandemic are offering financial help to let you swim through the tide but be cautious. They offer a covid-19 loan at lower interest rates to cover the treatment cost. In case, you have other loans then this will be an extra burden though the interest is low. The repayment tenure and interest rate vary from bank to bank. Few also offer moratorium time period but it comes with a cost of additional interest.
Also Read: 10 Personal Loan Scams Signs You Must Be Aware Of
So, understand all the criteria before applying for a fresh loan. Also, make future planning about how you will repay as it won’t be short-term.
5. Budget Within A Budget
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Keep a separate amount for emergency despite you are spending as per the set budget. For example- If your income is Rs 20,000 and your saving is Rs 3,000 then keep at least half of it for exigency. Forget about that money or the best thing you can do is to keep an FD. This will earn additional interest though it will be less but even less is more at a difficult time.
These are the important tips to improve your personal finances you must start following from today.