AS we continuously face the spread of Covid-19 globally, we are all affected in our financial, professional and social environments. This health crisis also resulted to economic challenges with growing repercussions. A lot of organizations shut down their operations because of the effect of community quarantine to control the further spread of the virus.
Financial knowledge can help us better manage our finances through times of hardship and even in prosperity. Here are some of the ways on how we can maximize what we have at this season.
1. Assess your current situation.
Sit down with your spouse or family members and list down your current cash flow: “What are the things that we need to prioritize and the things that we can set aside as of the moment?”
Knowing your situation will help you in navigating the journey. it’s like when we are travelling; before arriving in our destination, we need to take note of the route that we will take.
Maybe your goal right now is to get out of debt because of a lost job or it could be to re-build your emergency fund as you recover from unforeseen expenses. Having a “bayanihan” spirit at home will boost you and me in taking small progress.
2. Create a budget.
After evaluating what you have and listing down your priorities, it is good to stick to a budget. A budget plan can help us have wise decisions.
Even though we are facing an economic challenge, we might be unaware of the holes in our boat. Small expenses that are not essentials can make an impact to your monthly, quarterly or even annual budget.
What if you can save from your prepaid plan of around P2,000 per month, will that be a good amount to build a fund for your savings and/or insurances?
3. Rebuild your savings.
Many, if not all, of us might have decrease in our savings because of unforeseen cut in your salary or your business was affected by the quarantine measures. Once you regain back your income, it is wise to set aside again a portion of your income so you can rebuild your emergency fund. This will give us back the liquidity that we need in times of need like this season.
4. Check government initiatives.
As an entrepreneur or employee, we can still check the opportunities being rolled out by the government. Last year, the government launched programs that allowed small-scale and medium-scale enterprises to avail loans that provide low interest rates. This can help you recover from where you are now. Just make sure to use the loan in your advantage to regain your profit and steadily grow your business.
5. Identify alternative sources of income.
According to statistics given by the Department of Trade and Industry, “amidst the pandemic, there are still many opportunities we can find and discover. In fact, now the pandemic in 2020, the newly-registered businesses increased to 900,000 as of December 17, 2020. That is the highest growth rate of 41 percent since 2010,” Lopez said in mixed English and Filipino.
If you are currently employed, why not try monetizing your skills such as baking, cooking meals, doing webinars to teach about your subject matter expert. I have seen a lot of my friends became Entrepreneurs at this season, this allowed them to have extra cash to boost their income. This way we can be more productive to contribute also in our economy.
If you are a business owner, you need to start adapting to technologies and pivoting your current set-up. There are a lot of restaurants that started their operations for take-out deliveries of orders. This way, they can still cater customers even though the dine-in is limited.
For some real estate developers, they are converting some of their office spaces outside the metropolis to become warehouses since online shopping of items is currently in demand, the need for storages of goods increased.
6. Seek help from family members or friends.
If you are having a hard time figuring out what to do, always look for people whom can extend their help. It could be a financial need because of surge in expenses due to medical related circumstances. As we can see, the cases of Covid-19 are still increasing and there are situations wherein our resources can be constraint by the hospital expenses if in case someone in the family acquired the said virus.
As a nation, we are fighting this pandemic as one, unity is essential for us to be victorious. Always remember that each of us has a role to play, this is not the time to pin point fingers and blame people.
I believe this is a season for us to help one another, pray together and contribute in the best way we can. No matter how simple your job is right now, it is part of the bigger picture as we recover and gain back the life that we are all hoping for.
Karlo Biglang-awa is a registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 89th RFP program this May 2021. To inquire, e-mail info@rfp.ph or text at 0917-6248110.