If you’re like most people, then the last thing that would ever cross your mind is a pandemic. A sudden illness, such as influenza or swine flu, can spread through a population quickly and cause death rates to skyrocket. In case of an outbreak in your area, it’s important to be prepared for what could happen financially if you get sick and aren’t able to work. Here are five tips on how to manage finances during a pandemic:
Know Your Income
Make sure there is enough money coming in each month from all sources (salary, investments) because it is your lifeline when daily supplies like toilet paper, food, and water are becoming scarce than what comes next is all other prices are rising, so you want to make sure you have the money coming in to meet your needs.
Have a Plan in Place for Large Expenses
If you know that there are going to be large expenses in the near future, such as a car repair or home repairs, try and put some money away each month, so you’re not caught off guard.
It can be challenging to save money when you’re already struggling, but it’s essential to try and make small sacrifices now, so you don’t have to later. Having some extra cash on hand ensures that you won’t be forced to make difficult decisions if something goes wrong and could save your life during a crisis situation.
Create a Separate Account for Emergencies
If you don’t have one already, create a separate account just for emergencies. This could be an online savings account or even a checking account that is only used for unexpected expenses. When times are tough, it’s crucial to have a place to turn to for extra money.
Cut Back on Non-Essential Spending
Take a look at your monthly budget and see where you can cut back on non-essential spending. This could be things like eating out, cable TV, or even unnecessary shopping. The more money you can free up each month, the better off you’ll be in a crisis.
Monitor your expenses closely in case you are sick for an extended period of time, missing work, or even worse, you pass away. You want to make sure there is enough money coming in each month to cover all the bills (mortgage, car payment) as well as any extra spending like eating outside or buying things you don’t need!
Have Some Money Saved for Emergencies
Even if you’re doing your best to save money, it’s always a good idea to have some extra cash saved away just in case something unexpected comes up. This could be an emergency fund for your family or money that you can access in the case of a pandemic.…
