The COVID-19 pandemic has changed many things in habits and daily life. The recommendation for physical distancing also has an impact on the work system that is encouraged to be done from home (work from home / WFH).
This condition inevitably has an impact on various industries and the economy as a whole. In order to survive, various efficiency efforts have been made by the company, which will result in your income becoming increasingly full of uncertainty.
In the midst of the COVID-19 pandemic, you must be wiser in managing your finances. Financial Planner Bareyn Mochaddin shares some of his tips:
Avoid Adding Debt
Under normal conditions, creating new debt is often an option in overcoming the difference between income and expenses.
However, in the midst of uncertainty, especially in terms of income, avoid creating new debt. The new debt will actually be a financial burden in the future. Think of another way. Place the decision to add debt at the very end of your priority scale.
If you have debt, get out of debt immediately and pay it off to reduce the burden.
Map Financial Assets Based on Situations and Conditions
View and recalculate all your assets today. Map out in detail the amount of your savings and savings, the assets you already have, and the various investments you’ve made.
From there, you will have a more complete and comprehensive picture. Is there a job or investment that pays off? These funds can be allocated for your temporary expenses.
Know Your Needs and Create a Detailed Budget
Good planning is half success. Likewise in terms of finances. Scale your needs and how much budget you need for it. Record the budget in detail. You can also set a budget limit. For example, spending on basic daily needs is limited to a maximum of IDR 3 million per month.
In making a budget, prioritize basic needs and priorities. In addition, comb again all expenditure items last month. What expense items are not a priority so that they can be temporarily reduced or eliminated? Can you fulfill your obligations without spending money on the budget?
After setting priorities and budget, you also need to be committed and disciplined. For at least a month, try to stick with it. Do not easily change the budget for something that is not important and urgent.
Make peace with prestige
Before making a budget, you should also do an evaluation. In setting priorities and budget needs, you must be able to get rid of prestige. In the midst of difficult situations, you must be good at adjusting between your needs and financial capabilities. Open all opportunities to get goods or services at lower prices without compromising quality.
Get rid of all the desire to buy goods that are tertiary in nature. Put aside all the desire to look cooler and more attractive just for the sake of social media uploads.
Do an Evaluation
Evaluate the expenses that have been made, see the financial records, are …