Hardship can strike at the most unexpected of times. The COVID-19 pandemic is perhaps the best example of this. According to the International Labour Organization, 94% of global workers live in countries that are experiencing some degree of workplace closure. Tens of millions of people are facing unemployment, and a debilitating financial crisis has arisen alongside the pandemic.
Uncertain times are best dealt with by being prepared. Here are some steps you can take to protect your finances during challenging times.
Create a Budget
Creating a budget helps you keep track of how you’re spending your money and where you can invest in the future. Prioritize basic necessities, so you always have enough to cover these expenses.
Once you’ve sorted that out, consider what you’d like to spend your money on. This will give you a deep understanding of how much money you can allocate for savings and your emergency fund.
Generate Additional Income
Income earned from other sources, such as part-time jobs, rental income, freelancing, etc. will all help during a financial crisis.
Even if it isn’t substantial, supplemental income will go a long way in making things a little easier during tough times.
Plan Ahead for an Alternative Job
In times like these, when people are being laid off left, right, and centre, it’s important not to take your job for granted. Keep updating your resume, network, and be on the lookout for potential job prospects. You don’t want to be unemployed in the long-term because it’s a gateway to becoming debt-ridden.
Consider looking for an alternative job, perhaps something entirely different to your current field. Maybe even start your own business if you’ve got a great idea. Or turn your passion into a professional career. Once the money starts to come in, your doubts will begin to fade away.
The important thing is to have a plan in place so if you lose your job, you have something to fall back on.
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