We’re living in difficult and unpredictable times. With the global health crisis seemingly reaching its zenith, and life soon to return to something akin to normality, we’re getting used to the idea of a global recession hitting our wallets and our lifestyles in the months to come. As COVID-19 and its after-effects continue to place a higher financial burden on businesses and individuals alike, it’s time to think about your financial safety nets. In this article, you’ll learn three ways to remain afloat during the tough times ahead.
A New Budget
The first thing you can do – and something you should get into right away – it to create a COVID-19 budget. Treat this with a degree of excitement: after all, if you budget right, you’ll be able to live free of financial anxiety in the months ahead. Your COVID-19 budget is all about cutting out all but essential costs and making sure you’re putting some money in a savings pot each month. If you do that, you’ll be more able to ride out financial difficulties on the horizon.
The most important part of your new budget is income. You need to know how secure your income is for the future – and how likely you are to retain your job in the coming months. While this information is difficult to come by, it’s worth considering. That’s why savings are so crucial to your budget: you simply don’t know if you’ll maintain your job in the recession that’s to come. Freshbooks offers a simple step-by-step guide to help you begin your budgeting journey.
Avoiding Debt
In recessions, debt builds up. It builds up in government and in business, and it builds up at the doors of individual consumers across the world. In order to avoid the kind of debt that can put you at risk of having your home taken from you or your business fold, you need to think fast to cover your debts. In some cases, quick loans can grant you economic freedom to pay your mortgage, rent, or bill fees. This can ward off the dreaded debt collector.
Nonetheless, getting loans to cover debts is only a short-term fix. It can help you relieve anxiety and make a better economic plan for the future. However, in trying to protect your personal assets or your business’s finances, you need to come up with a more robust, long-term plan. Avoiding debt is the first and most fundamental pillar in that plan.
Adaptability
Finally, for those who own small businesses, are self-employed, or rely on the income of their own company to prop up their lifestyle, the recession that is to come can feel like a looming disaster. However, if you’re able to adapt and come up with new ways of doing business, there’s no reason why you won’t be able to remain afloat in the future.
Use your adaptability to find new markets, drum up new business, and boost your profits in this difficult time. Market yourself wisely to find new revenue streams, and don’t be afraid of trying new avenues to help you earn enough to get by in the coming months.
There you have it: three ways to make yourself stay afloat financially in the trying times that lie ahead.
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