It’s time to do a financial checkup if you have no savings, no job, credit card debt, and don’t know where your money went. Financial planning is now more important than ever.
COVID-19 has disrupted the lives of everyone. The lockdown has affected many people’s jobs and the economy as a whole.
It’s time to do a Health Check, regardless of whether your income is affected.
Look into your finances.
Check all your accounts: bank, credit card, mortgage, after-pay, subscriptions, and bills. You can then know your exact financial situation by writing down your “assets” and “liabilities.”
Are you aware of how much you earn each month? If you answered no, then you should find out how much money you make in total – both active and passive.
If you do not track your expenses, it won’t be easy to maintain a healthy budget. You can use many apps to help you track your spending.
You now have a clearer picture of your finances.
Budgeting your finances as a business
Set short-term goals and make a budget. One secret tip is to treat your finances as if they were a business. This means that you should be aiming for profitability. Take inventory of your income, expenses, and spending, then look closely at each category.
Start an emergency fund.
The COVID-19 Pandemic has made us realize the importance of having an emergency fund. Saving money for emergencies can help keep you from financial stress and panic. If you make saving money a monthly obligation, like loan repayments or rent, you’ll soon have enough.
Pay your debts
Do you have credit card debts or personal loans and own a home? A debt consolidation loan can help you pay off your debts. You can pay off your debts in one payment with a home loan at a lower rate of interest instead of paying multiple debts. As a licensed financial solutions provider and mortgage broker, we are here to help.
Cancel credit cards
Credit cards are widely available, and a quick way to get what you want is common. Credit cards are also a popular fashion accessory, especially for young people. A credit card, however, can be a major obstacle to improving your finances. Credit cards can be a big problem, as they can lead to debts you cannot pay off. They also damage your credit rating and may even cause bankruptcy.