Money and Mind Managed During Corona virus.
In history, the year 2020 will go down as for the year of Corona, although our scientists are always struggling to continue the flow. But COVID-19 could infect billions and potentially wipe trillions off the Global Economy due to Shuttered stores, Empty streets, and Global Lock-down.
We should not be panicked, although it seems that Corona virus is all-consuming. But the day is not far away, we will be looking back at this period as a particularly life like Episode of Black Mirror.
Apart from binging on hand sanitizer and friends’ returns, we can take a few following measures to stay sane and financially buoyant:
Create a Budget and stick to it: If you are struggling to make ends, must reach out to lenders who will be waiving your fees and extending due dates during this crisis.
Keep some cash for emergencies: You’ll have to be ready to ride out the storm. At least keep a short-term financing plan. I am holding at least 45 days of cash in my hand to run my family and to meet the daily needs. Also, I have kept some backup plan where if there is an emergency, I can immediately jump on for emergency cash backup—for example, Credit cards and Bank savings. My plan is to keep a backup cash flow if I face any emergency or if I have to keep myself locked up to another 90 days. I have converted some of my fixed deposits into savings accounts to get cash flow within the three to five-days notice. Also, I am trying to cash out from my stock of finished goods, which are still in demand. I am not telling you to go out with a full swing, but at least you can sell your finished products or services within your limited scale. My trying is to run my family within the cash in hand that I have. Also, I do not want to increase debt, whether it is through personal loans or credit cards. It is a 90 days plan. I believe every 90 days, we have to go to a different method of action. Only thing is constant here that you should have a short term plan of cash management.
Cut your unnecessary costs: Don’t take me wrongly. I am sharing what I did for my family. I discharged my driver and housekeeper giving three months back up salary. Also, I told them they could take a loan for me if they need any helps. I assured them I am always there. Frankly, I know I do not need them another six to nine months, at least in this new-normal situation. We have to live cutting our orthodox daily life.
Moreover, we have changed our food habits and reduced unnecessary and unhealthy foodstuffs in our list of purchases. We are sharing our daily works among the family members. Kids are assigned to do regular daily stuffs. Electricity and mobile expenses will be increased in this social distancing days. As I am the finance minister of my family, I genuinely dictate here. We tried to stay in the same room while we read and discuss, stop watching news through different electronic gazettes. Instead, we bought books and training materials to engage ourselves sedulous.
Keep a record of your costs daily basis: This is one of the toughest jobs for me. Even I am not habituated before the COVID-19. Now I am keeping cost sheets and maintaining to record our daily expenses. It starts to give amazing results. I discovered printing paper is contributing nothing in these days. Hence I dropped it. Unused materials are piled up. I start using alternative resources to reduce costs. Hand sanitizer is holding a significant amount in our expense list. Instead, I tried to use soap and stay in the budget. If you start to keep a record, you will find many insignificant items holding a significant amount of your budget. Please mark it and drop out from your expense list.
Avoid the stock market/speculative business: Maybe it sounds counter-intuitive, but it’s the time to weather out the worst of stock markets. We know it’s hard to think ahead of your next online yoga class, but smart investors know it’s the years and decades that finally count.
Dream of home brewing your own Kombucha and market it: This is the high time to take advantage of all the extra downtime and work on your side hustle.
Above all, Stay safe, Wash your hands, Try to stay sane.