The coronavirus pandemic has caused a lot of financial uncertainty around the world. When the economic slowdown has caused several companies to downsize in times like these, it led to millions being unemployed. The pandemic may have left you feeling uncertain about your financials, but it also highlights the importance of financial planning and the need to manage your money. Thus, this may be the ideal time to start finding ways to make money fast today.
This article discusses a few tips for making smart money moves during the coronavirus pandemic.
1) Refinancing Your Loans
Due to the financial impact of the pandemic, the Federal Reserve has slashed student loans. Thus, student loan refinancing and mortgage refinancing may help you get lower interest rates, thereby reducing your interest rates and your monthly instalment payments as well.
Before you think of refinancing, consider checking your credit score to know what range of rates you may qualify for.
2) Invest in Real Estate
If you’re looking for investment options during the pandemic, the real estate market may be a beneficial sector to invest in. From investing in a second home during the economic slowdown or disposing of an asset to help you financially cope with financial disruptions, investing in real estate is one of your best options as the real estate market continues to be stable.
The value of your property is primarily based on its location. Thus, make sure to get your property valued before listing it for sale. Once you’re ready to sell your house, you may consider selling it to a cash buyer or listing it with reputable real estate agents to get your property’s worth as quickly as possible.
3) Financial Planning And Budgeting
Financial planning and budgeting are the first things you should look at when faced with economic changes. Therefore, this may be the ideal time to focus on your finances along with creating a financial plan for your long-term money goals, such as paying for your debt or investing in your retirement plan.
To start the process, list down your expenses and consider the changes in your income and expenditures. Due to the pandemic and specific lifestyle changes, you may come across some costs that don’t significantly impact your budget, like gas or eating out expenses. After taking into account all the essentials, check the amount that’s saved. This should then go into your savings or be invested further.
For investing your money, consider your long-term financial goals and prioritize your investments accordingly. For example, you may want to put your savings towards a good retirement plan.
While financial planning, look at the bigger picture and create an action plan to achieve your financial goals. Once you’ve got your financial plan ready, ensure that you monitor it every six months to keep track of your progress.
4) Cut Down Your Expenses
Reducing your expenses is an impactful way of redefining your finances during these uncertain times. If you’ve seen a reduction in your income, it only makes sense to cut down your expenses. You may do this by listing down all the costs you can get rid of right now, like a gym membership or food take out. Reducing your spending by a few dollars can help you save money.
When it comes to handling a financial crisis, the general rule is to have an emergency fund saved that can last for at least three to six months. When you’re trying to build an emergency fund, consider taking into account your rent or mortgage, bills, payments, and other essentials.
Having a high-yield savings account is a great way to get started on your savings plan. It’ll help you get higher interest rates on your savings. To ensure regular savings, consider automating a certain amount into your saving account weekly or monthly. When you may be on a tight budget, even smaller amounts of savings can be impactful in times like these.
5) Ask For Help
While cutting down expenses is a great way to move forward with your financial goals, consider budgeting your debts to keep your financial goals moving forward. To do this, check with your loan provider or credit card company if they’re currently reducing interest rates or suspending payments to help people cope with financial hardship during the pandemic.
6) Consolidate Credit Card Debt
While the interest rates may be down right now, you may be stuck with a high annual percentage rate for your credit card. Consolidating your credit card debt may help you secure a lower interest rate, thereby increasing your savings plan.
To consolidate your credit card debt, consider transferring your high-interest debts to a new card with zero percent introductory APR. However, opening a new credit card may also have an impact on your credit score.
7) Create New Income Opportunities
As the pandemic has brought about several changes globally and put several jobs on hold, it has also opened up several revenue streams and created new income opportunities. The pandemic has helped boost the digital platform, and there are several online jobs available if you have the required skill-set for it.
Focus on side-hustles as they’re ideal for improving your financial condition during a crisis. You may consider taking on online jobs like taking online surveys, writing a blog, or starting an online business. This will help you make money during a crisis and help you keep your financial goals in momentum.
While the pandemic may have caused financial uncertainty worldwide, it may be an excellent time to reconsider your financial goals and make some smart money moves now to achieve financial security quickly.
In times like these, consider cutting down your expenses, refinancing your loans, adding regularly to your savings and consolidating your credit card debt to keep yourself financially secure. It’s also essential to focus on financial planning and budgeting to ensure that you achieve your financial goals.
If you’ve recently lost a job or want to increase your income, this may be an ideal time to consider new business opportunities by exploring alternative digital platforms.