The impact of the Coronavirus has presented many challenges and opportunities on how we work and how we use our time and money. Some of these challenges and opportunities include: retrenchment or salary cuts, whilst others had the opportunity to save some money on transportation and entertainment.
However, even though there are some saving opportunities, in most cases the financial losses far outweigh the money that is being saved. Therefore, saving during lockdown can be very challenging. However, saving can protect you against unexpected worst-case scenarios in the future and it can also give you a financial safety net. Saving money has never been easy – even before lockdown- and it takes a huge amount of discipline and self-sacrifice. But the end results of saving include financial stability and security in the future.
Where to start
Saving money should always begin with having an end goal in mind. You should know how much money you can save and what you are going to use that money for. If you don’t have a savings goal, you won’t have the discipline and motivation to save.
Having a goal for your savings plan will help you to adjust your finances and budget accordingly and filter unnecessary expenses. It also gives you a clear indication of how much you can save up. Start by compiling a monthly budget of all your expenses and income so that you can find out how much money you can save up when all your expenses are paid. If you already have a budget, then make sure it has been updated to reflect any changes in income and expenditure since lockdown.
Why should you have an emergency savings fund?
You will never know how what the future will look like. In case of emergency, saving gives you financial relief. Having an emergency savings plan is of utmost importance because it can help you to cover unexpected expenses that may come such as an expensive medical bill, car repairs, loss of income and home repairs. Set some money aside for these type of emergencies.
What if I lost my main source of income?
If you have lost your main source of income, just focus on getting by for now until you find another job. Don’t forget to inform your creditor about your financial situation. It is important to ensure that all your creditors are paid on time. If you cannot make payments, arrange with your creditor on when you will make payments so that you can avoid being blacklisted. You can also discuss other options with them such as a payment break or claiming from your credit life policy.
Speak to your caring partner
Iemas Financial Services is a responsible and credited financial service provider. Speak to us about options available such as loan consolidation, credit life and emergency loans: 0861 043 627 | www.iemas.co.za.