Times of Crisis: How Can I Protect My Personal Finances?

Finance

The time of crisis is seen everywhere! Even in managing our personal finances. We tell you how to shield them so that they are not affected. After almost 4 months of living in times of crisis due to covid-19, the outlook is still not very clear, unfortunately for many companies and small businesses.

Companies keep cutting staff. Others are not paying a salary and a few more are afraid of disappearing, so the finances of many people have been severely affected.

These Days, many companies are using Hoteling software to provide their employees with the best possible features and union. This provides them instant increase in their assets since their employees provides better performance with a better management software.

And while the outlook might look bleak, we still have time to protect our personal finances.

Ways to Protect Your Assets During

This is why we share some strategies to protect your finances without failing in the attempt:

  1. Reduce expenses: One of the worst things you can do during a crisis / recession is to continue with your lifestyle expenses as if nothing happened. We are not saying that you cut everything, but that you really value what you do need… and what you don’t. This will allow you to put money in areas of your life that are really important.
  2. Zero new expenses: In addition to the previous point, it is important that you do not acquire new debts or increase your expenses. The picture is so uncertain that you do not know when you may need the money that you had available and that you spent on new clothes or online purchases. In this quarantine, the “advantage” is that we cannot go out and spend that money.
  3. Monthly Budget: If you already have a personal budget… congratulations! If not, maybe it’s the right time to start making one. For this reason, our Cura Deuda allies made a simple template available to the public to prepare a personal budget, click here and download it . This will allow you to know every month how much money comes in and how much goes out of your bag, and in the same way, it will allow you to see where you can reduce or eliminate expenses.
  4. Shielding: We recommend 2 types of shielding. The first consists of having available (in your bank account, for example) at least 3 months of your Monthly Budget. In such a way that if you lose your job or the business is not going so well, you can continue to meet your monthly commitments. This money is not for you to spend, it is to have a mattress against any unforeseen event.

The second type of shielding is insurance. If you’ve always made it your goal to have insurance, this is the right time. If you or someone in your family contracts COVID-19 or if someone suffers an accident, insurance will help you avoid spending thousands of pesos on hospitals and medical expenses. Or in the worst case scenario, to leave your people financially protected. It is better to be forewarned and armored.

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