No one ever expected to experience a pandemic in their lifetime, yet here we are on a lockdown while our health workers fight day and night to save the world from the deadly COVID-19 virus.
A lot of things are out of place, schools and businesses have been shut down temporarily, multi-million-dollar sporting activities have been postponed, a lot of people now work from home, while others are trying to survive each day as it comes.
The pandemic has not just out-turned the order of our lives but stands tall as a threat to the immediate future of global economy in the future.
With everything happening around us, it is only human to be afraid and anxious. We understand that a lot of people have gone into panic mode and remain anxious for their future after the pandemic. This is no time to panic, but a time to be strategic about your finances. A time to do an audit of your finances thus far.
If you have never thought of financial planning, budgeting and have never taken any steps to secure your financial future; this is the best time to start taking control of your finances.
In this article, you will learn:
· The essentiality of an emergency fund.
· Managing your finances for the future.
· How to ensure your financial wellbeing.
When does an Emergency Fund come in handy?
You must have heard about emergency funds and how essential it is to build one in case of unexpected events such as death, illness or…a pandemic.
Basically, an emergency fund is a fund set aside for unexpected and unplanned events. This fund helps you take care of unexpected events which would have dug a hole in your living expenses or investments. An emergency fund is usually built to last a minimum of 3–6 months depending on the standard of living the individual.
To build an emergency fund, you would put aside at least 10% of your income in a Mutual Fund like the Cordros Money Market fund. A money market fund is a low risk investment which provides regular income for its investors. You can always liquidate your investments when it is time to take care of an emergency.
How to manage your finances during the Lockdown.
To take control of your finances this period, you would need proper budgeting and money management methods. Already, the lockdown helps you cut down on some expenses such as events, travel, transport, monthly membership fees etc. Find time to review your living expenses this period and convert the monies saved as a result of the lockdown to investments for the future
First, you have to learn to never spend more than you earn. Buy only the things you need during the lockdown and avoid impulsive spending or panic buying. Try not to withdraw more cash than you need. Banks are part of essential services and are open throughout the lockdown. No need to worry. Once you start tracking every expense you make, it helps you stay accountable and take control of your finances.
How to ensure your financial wellbeing.
Amidst the pandemic there are certain steps you can take to ensure you stay financially fit. You don’t want to run into debt or go broke after the pandemic. This is the time to think strategically about your finances. What can you do to improve your cashflow? Consider investing from your earnings or converting your savings to a low-risk investment from which you will earn returns.
With Cordros Money Market Fund, you can invest for the future while earning competitive returns on your investment. As a low risk investment, the possibility of losing your capital is pretty low. Learn more about it here.
You may also want to learn about other mutual funds you can invest in:
· Cordros Dollar Fund
· Cordros Milestone Fund 2023
· Cordros Milestone Fund 2028
So, there you have it!
Despite the state of pandemonium around us, you can make lemonades out of COVID-19 lemons by being strategic about your finances and making wise financial plans for the future. The future is closer than you think. To avoid living in fear and anxiety, prepare for your future now.
Remember, stay home to stay safe.