Cutting Your Expenses in Economic Slowdown
The world is changing and WHO just announced that the COVID-19 might be around for a longer time than we think. People are out of jobs as there is an economic standstill or slowdown and to make it worse, we do not know when this economic crises will last. A friend of mine came asking for an advice on how he can manage his finance this period and I was able to offer a little help. In this post, I will be sharing with you what I shared with him. I told him something and that was “In this period, manage your expenses”.
Organize yourself and everything about you
I made him understand that first he has to make things straight with everyone. If he was in debt or owing someone maybe his landlord or anyone around, the first thing he has to do is call them and let them know that he is having hard times due to the pandemic. If he could ask for a relief or an extension, that will help a lot since the period is challenging. I made it clear to him that they might negate to his offer but considering the current economic situation, most people will consider it.
Cutback on everything that is not needed
At this point in the economy, there is no finance available because the finances can’t help the current situation as there are more cases and until there is a solution to this virus, anyone can contact it. At this point, you need to cut off all unnecessary expenses, the cinema ticket, the movie subscription, eating out, designer clothing and so on. You need to save a lot of money now else you will go broke and no one will save you.
Negotiate Everything now
From Utility bills to stuffs you are buying, at this point you need to negotiate everything you are getting. You never know how much you will gain if you decide to negotiate everything you are doing.
Create a financial system
Create a system on how you spend money and how you make money. You need to understand that you only buy what you can afford and not what you can buy. Also, you need to understand needs from wants.
At this point, with the current economic situation, you need to start cutting expenses and understanding how you spend money. We do not know when this crises will end and how long it will take.
Expenses can be very killing if not properly planned. A lot of people do not know that we are in trying times and this time one need to work on their finance.
This is the best time to begin to manage our finance and cut down our spending habit is now since we have no idea about what will happen next with the economy.
The economy is really not smiling this period and it is time to seriously cut down on excessive expenses.
Going to the club, the cinema, eating out is something that can be suspended for now except you are extra rich.
@papa-mensa currently we have to focus on saving money , until covid vaccines are not available we cannot say how long this will going to happen.
I really hope the vaccine gets out soon.
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Excellent advice my friend, @papa-mensa. Especially at this time it is very important to take the financial issue seriously as we do not have a specific date for everything to be over.
Save in all aspects and resources. It is also important to have a positive attitude and know that sooner or later this shall pass too.
Thank you for sharing :D