Since the start of the lockdown in March, one cannot help but feel anxious about what will happen in the future. All of a sudden, you can’t do the things you normally do – go on a vacation, have a quick trip to the mall or grocery, going out with your family, attending parties with friends, and the list goes on. There are uncertainties in terms of job security or continuing your kids’ education.
This is why at this point, you need to be more careful and wise when it comes to how you will spend your money. Handling your finances could make or break your financial stability, which means you need to think twice – or thrice! – when it comes to these financial decisions:
Starting A Business
Starting your own business is fine. But if you will start a business that could possibly deplete your cash on hand, then you need to think twice if this is a best decision.
It is best to start small first and see where it goes. Using your Emergency Fund to fund your business is not the wisest decision at this point because you need to be prepared for eventualities.
Also, don’t give up on finding a new job in case you are one of the thousands who were sent back home because of the pandemic. While having a side business is okay, looking for a stable employment could help you weather the rainy days.
Hoarding Essentials
Compared to March and April 2020, going to the grocery now is easier because you don’t have wake up early and wait to go through horrendous lines.
That being said, there is no need to hoard. You don’t have to worry about the supply of goods because you will never run out. Stick to your budget because you will still need your cash to pay for other things, say utility bills.
Impulse Purchase
E-commerce platforms like Lazada and Shopee have been hosting monthly sales to entice people to buy. While there are tons of good deals up for grabs, this doesn’t mean it’s your license to buy whatever you want.
Sure, you deserve good things, too, but at this point, it is best to stick to essentials. Focus on the items that you will need at home and look for deals related to that. This way, you can enjoy more savings , which you can use to other equally important expenses.
Riding The Bandwagon
If you noticed in social media, #plantita and #plantito are everywhere. You will also see new food offerings that will definitely make you drool. There are also viral recipes or hobbies that entice you to do at home.
Before you join, check on your wallet first. Doing what others are doing just because is not advisable. Taking out a loan just to fund that new hobby is also not recommended.
Unless you are passionate about what is uso, use your time and money wisely. Go for something that will benefit you and your family more.
Taking Out Loans
Loans can be helpful. It gives you a breathing room to spend money, assuming that you will use it for a good cause. But if you will apply for a loan just to finance non-essentials or purchases that can wait, then you might want to think twice.
Applying for a loan means you need to pay interest on top of the principal. You need to take note of the due date, too, otherwise, you will be forced to pay penalty fee.
Therefore, think twice before you apply. Otherwise, you might end up in a pile of debt if you keep taking out loans just for the sake of borrowing.
Withdrawing Investments
Investments are meant to last long. In fact, you will enjoy the earnings more if you leave your money.
It’s a different case if you’ll withdraw your investment. Aside from the early termination fee, you might compromise the possible earnings and growth of your money. Unless you really need it, say payment for medical bills or tuition fee of your kids, keep your money first.
These are uncertain and challenging times but it is not an excuse to make impulsive decisions that could compromise your financial standing. Limit your spending to essentials, set up a budget, get rid of unnecessaries, and look for additional ways to earn money.
Hang in there and soon, we will be back to what we used to be.