By: Latasha Brown
This uncertain time has left many of us devastated, and hopeless. There has been many people who has lost their jobs, been laid off, experiencing furlough, and I can imagine that this have drained many people financially. You probably are trying to figure out how in the world you will be able to recover financially after this pandemic.
First, I want to remind you that, you are not alone, this too shall pass. Right now the greatest thing that dismisses fear is Hope. Now is the most perfect time to get prepared, and take advantage of the tools and resources you need to make wise financial decisions. I know many are at a race to get back to normal, when it comes to your finances, which part of normal you really want to return to. This could be a great opportunity to shift gears and adapt to some new changes, approaches, and perspective to not only recover financially but to continue to navigate through your finances with peace, wisdom, and confidence, and experience everlasting financial security.
How can you recover financially after Covid-19?
1. Create an Emergency Budget. I cannot stress this enough. It is critical that you get yourself on a budget, at this time you need an emergency budget. An emergency budget will allow you to focus on the essentials so you can free up some funds. This step will avoid you going in panic mode, overwhelmed, and not able to make wise financial decisions. Focus on the essentials, such as Shelter (mortgage, rent), Food, Utilities, and Transportation. These are the most vital things that are needed. During a pandemic, you have to re-evaluate things in order to protect your finances, and prepare. Unnecessary spending and expenses can be placed on hold until you get through this. It’s important to remind yourself this is temporary.
2. Contact your bill providers. After you created an emergency budget, and you find that the aftermath has left you financially drained, it’s still not too late to reach out to your bill providers. This is the most important step. Don’t assume they know what you are facing. The only way they can help you is for you to reach out and take a personal approach to this critical step. Before you get behind or miss a payment that can damage your history with your creditors, reach out to them via phone. Many bill providers have issued statements providing resources, hardship programs, and have offered assistance to their customers that are experiencing financial difficulties.
3. Use your emergency fund sparingly. If you have an emergency fund, consider using it at the last result, but remember you can rebuild. If you are out of work, once you return automate a specific amount to your savings account to replenish it. If you do not have an emergency fund this is something to consider for your future to prepare for the next financial emergency. It’s important to get aggressive with building an emergency fund.
Reports show that 45 percent of Americans say they do not have enough savings to cover for a financial emergency. As soon as you possibly can, start with $1000, automate your savings, and store your money in a high interest savings account. An emergency fund will save you financially, and prepare you for the unexpected, and give you the financial resource to avoid going in to debt.
4. Don’t be distracted by your emotions. These are very trying times, and you are not alone. Do not allow your emotions to drive your financial decisions. Even if you were not prepared, you would have never known this was coming, so you cannot control that. Release the guilt. Focus on what you can control, face your emotions, and allow it to empower you to create a recovery plan, so that you can prepare for the next unforeseen emergency.
5. Experience a financial shift. It’s time to shift. Even during the recovery, get creative and learn something new. Learn how to budget wisely, learn how to save money, learn how to negotiate your rates with your bill providers, learn how to maximize your income. Take advantage of all saving opportunities such as utilizing coupons, cash back rewards, these are smart moves that we can do now to help recover financially. Do something today that will change your finances for tomorrow. Create healthy habits to recover financially.
Final Thoughts: Don’t be afraid to be creative and try new things to recover financially. Don’t avoid seeking support, asking for help to guide you into navigating your finances and getting on track financially to recover after a pandemic. Thank you for taking the time to read this article. I hope this was helpful and give you some inspiration and a peace of mind in making financial decisions during such an uncertain time.
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