The advent of the Covid-19 pandemic signaled a profound change in life as we knew it. Not only were lives lost, but the financial structure of many industries in Malaysia also took a significant hit. Yet, we must live our best lives, even in the face of this unrest. Thankfully, there are simple and practical steps you can take to keep your finances going strong, even in these times. Here are a few of them.
Consolidating Your Debt
In times of financial instability such as this, it’s only logical to turn to loans to find a way to sustain yourself. However, once the worst financial emergency is over, you need to make clear your debt a significant priority. It would help if you listed all the debts you currently owe and then, depending on the loan size and the interest rates, choose the best debt clearance method. Clearing your debt mightn’t feel like a pressing concern right now, but once done, you’ll be glad you did it, as doing so comes with a sense of relief and an increased cash flow!
2. Find a Different Approach To Managing Your Cashflow And Budget
For the immediate future, it’s safe to say that it’ll be a long time before things return to normal. So, pending that time, you have to adjust to the new terrain. It means making significant lifestyle changes. While doing so, it’s essential that you also be mindful of specific traits that can become harmful if left unchecked. It includes but isn’t limited to excessive online shopping and spending more than necessary on groceries. At the moment, your primary goal should be focusing on budgeting, analyzing the changes in your cash flow, and finding the most efficient ways to use what resources you have at your disposal.
3. Build Your Emergency Savings Again
Like most Malaysians, one of the first casualties you must’ve sustained at the height of the pandemic was your emergency savings. It is even more likely to be the case if you lost your job during this time or had to take a pay cut. So, while it may be hard to do, especially now, you should also make building your emergency savings a priority. Doing so gives you a cushion to fall back on if something unexpected happens and you need funds quickly.
4. Re-Evaluate And Re-Establish Your Financial Goals
Lastly, find a way to reassess your financial goals objectively. Recent events would change your approach towards finances and investment. Because of this, you need to take the time to find your bearings. Give yourself some breathing room and set achievable short and long-term financial goals.
Slowly but surely, you will be on track.