No recent health crisis has altered our daily lives so quickly or thoroughly as COVID-19. All over the world, governments have closed borders and imposed quarantines to slow the virus down. Here in the Philippines (and Metro Manila in particular), the economy has temporarily ground to a halt.
Managing your finances during these uncertain times is crucial. If you don’t have a set financial strategy for nearly three more weeks of quarantine, now’s the time to lay groundwork. Use these tips to keep your finances stable.
Manage your stress levels
Don’t panic! It’s okay to worry about grocery runs, getting sick, and being cooped up for too long. But don’t let it get out of hand. Vent some of your anxieties to a calm family member, a friend, or your dog, if you must. Most of all, give yourself time to process and get comfortable with the fact that this situation will pass with time.
When you’re faced with an important decision, make sure you feel calm and balanced before you proceed. This goes doubly when it comes to money. You don’t want to hustle and start panic buying the minute you hear about a fully stocked supermarket.
Minimize non-essential expenses
In a way, the enhanced community quarantine makes overspending a minor issue. Most retail stores are shuttered, only stores stocked with “essentials” (food, medicine, toiletries) receive a steady flow of customers, and curfews limit the time you spend in public spaces.
But, it’s still helpful to remind yourself to pause before you splurge. Reevaluate your budget, and make basic needs a top priority. That means setting aside enough money for food, rent, utilities, and your health before you even thing about luxuries like new gadgets or an expensive bottle of wine.
Living frugally right now will make a difference in how well your finances bounce back from this health crisis.
Track your bills and prep with the end in sight
Good news: Several banks and utility companies already announced an extension of payment deadlines (check out this list for deets). While this news provides welcome breathing room, it’s better to use the extra time to prepare your reserves for payments once they start coming in.
Note down all your monthly payments, arranged by new due date, and devise a payment plan with these questions in mind. Do you have enough cash to settle payments plus your quarantine expenses? Are you still getting paid during or right after the quarantine? If not, will you have to worry about late or missed payments? Can you ask lenders for more leeway? How much money will you have after you pay everything off?
Maintain status quo
This goes hand in hand with not panicking. If you’ve worked hard enough to put some money away—in stocks or life insurance—sit tight. Now is not the time to sell off your tanking portfolio or withdraw a policy prematurely. We’re only two and a half weeks away from the proposed end of community quarantine. It might feel like an eternity, but it’s not far away. Hold on to your investments, because the market will eventually recover. Just give it time.
PeraJet recognizes that a standstill economy can hurt your financial stability. Because of this, we are continuing to accept online loan applications, so you can secure the money that you need.