Are you looking to take back control of your finances? Personal finance has never been easy, but the coronavirus pandemic of 2020 has made it even tougher. Is it possible to have financial control in today’s economy?
Here, we’ll look at how you can take control of your finances despite Covid-19.
How Has Covid-19 Impacted Personal Finance?
The financial implications of Covid-19 so far have been dire. It isn’t just businesses who are losing out financially, it’s individuals too.
Millions of workers have been forced to take a pay cut. The furlough scheme saw the government pay up to 80% of staff wages while they were furloughed. However, many employers couldn’t afford to top up the remaining 20%. This left workers with a significant shortfall compared to what they usually receive.
The loss of income has made it difficult to pay bills, including rent and utilities. A staggering 2.7 million self-employed have also had to apply for financial support. The self-employment grant has helped to minimise the damage, but it has still led to a drastic drop in revenue for many self-employed.
Banks and creditors have also stopped lending money, while the cost of bills hasn’t decreased.
How To Take Back Control
Although the current economic climate is worrying, there are ways to take control of your finances through the Covid-19 crisis.
One of the best things you can do is seek financial advice. For those really struggling, Citizen’s Advice and other non-profit organisations can help. However, if you have the funds, it’s worth seeking help from an independent financial advisors . They will be able to look into your situation and help you discover the best ways to improve your finances.
Another great tip for taking back control is to cancel something you don’t really need. For example, do you pay for a lot of TV channels and subscriptions that you don’t really watch? If so, cancel them to free up spare cash.
If you’ve missed payments, you can arrange affordable repayment plans with your creditors and bill providers. You should also go over your budget to see where cutbacks could be made. You may just be surprised how much you could save with minimal effort.
These may be worrying times, but with the right level of effort and focus, you can take back control of your finances. The Covid-19 pandemic will go down in history as one of the worst recessions to ever hit, but it doesn’t have to devastate your finances completely.