Who does not want to have stable finances at all times? Especially in times of uncertainty as it is now. Yes, that can only be achieved through effort. The first step to maintaining financial stability in the new normal era is to apply the adaptation of new habits to the maximum. This applies to all sectors, including adapting to new lifestyle patterns that have an impact on personal financial conditions. Then, how to keep your finances healthy in this new normal time? Here Investree has some tips for you, see, let’s go!
The new normal era will certainly affect our daily lifestyle. Such as the need to adhere to health protocols by using masks & face shields, washing hands with soap, using gloves, to consuming vitamins and healthy foods, this certainly adds to our monthly shopping list. However, there are entertainment costs that can be reduced, such as vacation costs, hang-outs, to watch movies because it is still difficult to do during the new normal period. Even if you can, it is still not as free as it used to be.
Therefore, you will need to evaluate or recalculate, as well as rearrange the distribution of spending posts. So that spending can still be balanced and adjust to the current situation. If you do not adjust your budget, it may cost you a fortune and make you suffer. If no budget is sacrificed to reduce it, you will have a hard time meeting the needs that need to be met during the new normal period. Also, be disciplined in adhering to the budget you have set so that your finances stay on track.
Prepare emergency fund savings
Once you have evaluated the budget for your monthly expenses, you can get a clear picture of how much money is needed to meet your basic monthly needs. From there you can determine the amount of emergency funds to save. You must have at least an emergency fund of 6 times the monthly cost of living. There is no harm in having extra precautions because anything can happen in seconds, even for bad events.
Then, where should you save the emergency funds? Definitely place in a separate account, preferably not stored on high-risk investment instruments, and can be withdrawn at any time. Make a commitment by getting used to setting aside emergency fund savings at the beginning of the month before you use your income for other expenses. If the economy has not yet recovered and you are losing your main source of income, at least you can use Payday Loans that can help you survive.
Find opportunities to increase revenue
Take advantage of every opportunity. If you have other skills that you can use to make extra money, why not? Because we now spend more time at home, it is good to take advantage of this opportunity to explore and stay productive. Especially if you work in a company affected by COVID-19 should be careful with having a backup plan. Try to find other side job opportunities that keep generating, so that when something bad happens you still have income from side jobs. Starting an online business or becoming a freelancer can be an option, it is important to start immediately because the opportunities are wide open. Data show that the growth of the digital economy in Southeast Asia in 2019 has reached US $ 40 billion, which is predicted to continue to increase to 3 times in the coming year. Digital transactions have also increased by up to 50% per month since the pandemic. So, still do not want to take a chance?
Wisely distinguish desires vs. needs
It is important to identify what you really need or just want. First spend money to buy all your necessities, then save your money if there is any left over. Distinguish between needs and wants. Needs are everything you need to survive. If it is just a desire, even if it is not fulfilled, it will certainly not affect your daily life. If you can discipline to differentiate, there will be less spending during the normal new period.