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In these uncertain times, sticking your head in the sand and waiting for everything to just go away can seem like a solid plan. Unfortunately, that probably won’t get you through the COVID-19 recession in a stable financial position. While now probably isn’t the time to make major, risky decisions, it is the time to hedge your bets and protect yourself from what’s coming next.
Get Your Debt Sorted
One of the biggest issues society will be facing is the massive amount of debt we’ve collectively accumulated. While you can’t change the whole world, you might be able to change yours by looking into effective debt management solutions. Consolidating and managing your debts as a single payment isn’t a silver bullet, but if you can get a low enough interest rate, and favorable repayment terms, it’ll certainly put you in a much better financial position than you were before.
Budget, Budget, Budget
Yes, we know, everyone says that you should have a budget, but today we’re taking things a little further. Given the way the world is at the moment, the more money you can put aside each week, the safer your buffer will be if everything goes sideways for you. That means it’s time to revisit your budget (or create one if you don’t have one yet) and focus hard on paying down debt and setting up a decent emergency fund. Yes, this will mean going without luxuries, but putting in the hard work now will protect future you from ending up in a bad situation.
Invest
If you’re in a position to do so, speak with a financial planner about whether investing in the stock market could benefit you. Many shares offer dividends and if you invest in an ETF, you can get your hands on a little piece of a whole host of companies in one hit. Obviously, your strategy for this will be highly personal and you should always seek expert advice based on your specific circumstances, but if investing is right for you, it’s a great time to get into the market.
Examine Your Bills
Your bills have probably gone up a bit with all the extra time everyone is spending at home, which makes now the perfect time to see if there’s anywhere you can save. There are two main ways that you’ll be able to reduce your costs, and therefore increase your security during the recession. The first is by reducing your usage, which is fairly straightforward. The second is by switching providers. Often we set and forget things like electricity, gas, and internet connection, but by shopping around just a little, you might be able to score a better rate and end up saving yourself a lot.
Get A Side Hustle
The more diversified your income is, the less likely you are to be left without one if everything goes sideways. Because of this, it’s always a good idea to have a side hustle going if you can manage one. Thanks to the booming gig economy, there are plenty of ways to get started, so all you need to do is work out what’s best for you and go do it.
Recessions are never pleasant, but by implementing the tips in this article, you should be able to weather the storm a little more easily. Nothing about the way the world is at the moment is ideal, but don’t worry, you can get through it.
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