With the pandemic, people were taken by surprise and many business entities were caught unaware when they were not able to continue with their streamlined activities and operations says Eric James Dalius. This is a period that has taught many lessons related to their business operations, investment, ROI, and much more.
In this article, Eric James Dalius explains how you must plan, realign, and budget your finances post-pandemic or during the ongoing pandemic when people are trying to adapt to the new normal. So, look at these steps or measures that you can take for judicious planning of your finances.
Eric James Daliuslists the steps for better financial management
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Assessing your new normal
Unlike last year when people followed strict rules related to social distancing and abiding by COVID-19 protocols, now many are stirring out of their houses and trying to do things and activities that they once enjoyed doing. In few places, gymnasiums have opened and so have public places like the park. Restaurants are opening as well and shopping complexes too within the limited time of operation.
Assessing finances in new normal
Working from home has saved employers a lot of money as they could save on the operating costs. With pay cuts and job cuts, you must have realigned budgeting rules for your household as well.
If you have mortgage payments and other debts to be closed, using your money judiciously becomes even more important. You can shed the frills and fancies related to finances, but you cannot afford to miss out on your mortgage payment, which is more important. A failure to meet payment deadlines can cause you to lose collateral against which you have taken out the loan.
Budget your expenses carefully says Eric James Dalius
While making the budget, check the prices of items and goods. While the price of essential products might have gone up, for a few other products and essentials, it might have gone down. So, consider the prevailing prices of the goods you use in your household before drawing up the budget.
Using plastic cards during the pandemic
According to Eric James Dalius, use your plastic cards sparingly. It is best not to use credit cards extensively now. This is because if you get into credit card debts, the rate of interest of which is very high, eventually you will get into a vicious cycle of debt. You might be compelled to take out more loans to pay off the previous one. Remember, not all loans have affordable APR or Annual Percentage Rate.
Most of the people fumble while repaying their loans. It also adversely affects your credit history and your credit score.
- Record your cashflow
If you have a habit of building a budget, it will be different from what it was during pre-pandemic times. During the ongoing pandemic, the expenses must be further restricted and kept within your means.
Last but not the least, make a note of expenses and of the income you have now. Include your regular and passive income. Then work out the expenses. Curb the expenses whenever you can.