The Covid-19 pandemic is more than a health crisis. It’s a financial wrecking ball. Starting with the first reported cases in the U.S. in early 2020, the pandemic has single-handedly erased more than %12 trillion of wealth, generated a global recession, and put at least 33 million citizens out of work- either in the short term or for good.
With that said, it is not yet clear how long it may take for families to get back on their feet financially – however, as we remember from our past experience with economic crises, there are steps we can take today to potentially restore our financial wellness sooner.
Maintain an Adequate Emergency Fund
One of the most important things to ensure you have during such a crisis is a proper emergency fund. This will come to your rescue when you least expect it, such as when your income gets restricted, or you face an anticipated crisis like a family or medical emergency. And while “proper” may mean wholly different things to different families, you’ll be advised to ensure your emergency fund is worth at least seven months of your expenses. Where should I stock my emergency fund? You can choose to store your emergency deposit in a high-interest savings account or a fixed deposit if you’re looking for some capital appreciation.
Also, exercising some strict budgeting measures will help you free up more revenue for your essential financial commitments such as paying rent, building an emergency fund, utilities, EMIs, insurance premiums etc. Now, the lockdown might have assisted you in reducing some of the usual expenses like daily transportation, this should help in improving your savings.
Hire an Accountant for Personal Finances
Our spending habits have evolved and changed over the years, so it comes as no surprise how our financial decisions always have an impact on those around us. By hiring a Regnskapsfører Oslo for personal finances might help you in all manner of areas, including:
- Personal finances and admin
- Helping you invest and save your money
- Pension money
- Guidance and support on financial decisions
- Money discussions/ negotiations of salary
If you’re a neglectful spender, getting Regnskap Oslo help will guarantee you’ll never forget to pay bills, be overdue or face penalties. Usually, an accountant can send you a personal reminder, or even better, they can just pay the bills on your behalf- making everything easy and simple. What’s more, working with Regnskapsbyrå Oslo gives you the guidance and support of a number of agents, and it likely means if your agent is on vacation or ill, you can still receive guidance and advice when necessary.
Life and Health Insurance Should Be Your Priority
It might be best not to compromise proper insurance protection in times like these. In case you have a term plan, ensure you at least pay your premium in time to avoid any policy lapse. Your insurance policy will come to rescue in the event of your unfortunate demise.
What’s more, ensure you get a medical insurance plan both for yourself and your family member with enough coverage to protect your money from getting drained in tremendous hospitalization bills.
Crises such as COVID-19 require calm nerves and not panic-driven decisions. These tips might help you make certain critical financial decisions so that you emerge from this crisis untouched.