The coronavirus (COVID-19) pandemic slows down the economy. Although some states are slowly opening back, others still extend quarantine. Because of this situation, money gets much tighter.
Some essential workers are back to work, earning their salary. Meanwhile, others are still stuck at home receiving none.
The quarantine period is critical to everyone’s health – financial included. If you don’t have an emergency fund, your wealth will fall back. Don’t be depressed. You can still make it through this hard time. Contemplate on your status. Spend quarantine time wisely for your financial advantage.
7 Smart Financial Ways During Quarantine Time
Being stuck at home is not the end of the world. Use the quarantine time wisely to improve yourself. Now that you have more time, spend it wisely for your financial advantage. Here are the 10 smart financial tips while at home.
Streamline Finances
Don’t bore yourself thinking about when this pandemic will end. Rather, find ways to make life easier here and there. Spend quarantine time to simplify, streamline, and organize your financial life. It can free up both your time and cash. How?
- Slim down the portfolio. Take one to three mutual funds instead.
- Put retirement savings on auto-pilot. Set a target-date fund.
- Get rid of subscriptions. Cut off subscriptions that are no longer used.
- Start a new targeted savings account. Open an account that offers cash bonuses and minimum balance requirements upon sign up. Best used for future education and travel goals.
- Bundle insurance policies. Save more money by bundling policies – homeowners insurance, renters insurance, and auto insurance, with a single provider.
Organize Finances
While you’re on quarantine time, assemble all accounts, passwords, and points of contact. Do it with your partner. It is a financial advantage when couples work hand in hand. Have a checklist of must-have documents like a will, powers of attorney for financial and health affairs, bank and investment accounts. With or without a partner, you must:
- Assure both names in the joint account
- Review all automatic debits and transfers from the account
- Gather insurance policies
- Review and update beneficiaries
- Get a copy of the credit reports
Add to that, now is the time to organize your home. Separate the things you’d still use and not. Pile it up in one corner of your house and think of ways to get rid of it.
Protect Finances and Identity
Online accounts must be protected at all times. Change passwords frequently. Make it complex by adding letters, numbers, and random characters. As much as possible, don’t write it down.
During quarantine time, sign up with a password manager. Store all the codes behind one master login – the only password to remember. The password manager creates strong, unique, and unpredictable passwords for each account. It is a financial advantage especially if you keep forgetting your passwords.
In addition, enable multi-step authentication on your accounts. As you enter the username and password, identity confirmation is sent to your smartphone or e-mail address. This method deters hackers and informs if there’s an intruder attempt.
Sell Stuff
As you get your stuff organized, don’t let the unused items go to waste. Be ahead during quarantine time by selling items that are worth some value. There are many sites to choose from both locally and internationally. Take note of the cost of shipping. Earn extra income as you unload items in your home. This is another financial advantage while safe at home.
Track Spending
Quarantine time is an excellent time to sit down and face the reality of your financial condition and loan status. Track your spending as well as your credit health. Start with your bank statements, money lender loans, and credit card bills from the last 3 months. Tally purchases every month and categorizes if the spending makes sense. Typically, there are groceries, dining out, entertainment, transportations, bills, and subscriptions.
You’ll see how much food spending takes over your finances. This is such an eye-opener. It’s like confronting your real-life spending in black and white. Track spending is a financial advantage indeed.
Start A Budget
After track spending, you now have an idea of where you spend too much. A perfect guide to start a budget. Write down a spending plan based on your monthly income. Also, you may download budgeting apps and spreadsheets.
Either way, the goal is to spend less on things you don’t need. Rather save more for other aspects of life. Budgeting doesn’t have to be restrictive. It’s a plan for hard work money.
Start Side Hustle
Due to COVID-19, many have been temporarily cut off from full or part-time jobs. Being at home is not a hindrance to earning more money. There are many ways to make money during quarantine time. Such strategies are:
- Drive for Uber
- Take online surveys
- Be an online tutor
- Work as a freelance writer or virtual assistant
- Start a blog or vlog
Keep your wallet intact with these sidelines. It is one of the best financial advantages during quarantine time.
Now is a challenging time for everybody. Don’t stress yourself out. Being safe at home has a lot of perks. Take it as an opportunity to reevaluate your lifestyle. Make quarantine time worthwhile – use it to your financial advantage. Save a surprising amount of money – avoid dining out.