How to Refocus Your Finances During a Pandemic or Uncertainty

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Having financial goals and targets is great. They give us a way to stay on track, and motivation to manage our money effectively.

Using simple spreadsheets, making cutbacks and saving towards specific targets or trying to reduce debts are all effective ways to manage your money. They keep our bank accounts in the black, help us to make more interest and reduce debt payments. Money management should be part of our everyday life. 

But, what about when everything goes wrong, like now?

Unemployment is higher than in recent memory, and even those of us that have kept our jobs have lost income and faced other financial hardship.

It’s been tough, and if you’ve had to stop chipping away at your debts or cancel payments to your savings accounts and pensions, you certainly aren’t alone. 

So, what can we do?

Do we give up on long-standing goals and financial targets?

Do you accept that you will always be in debt or struggling for money?

Or do you refocus?

How to refocus your finances during a pandemic

1. Prioritize survival/ cash on hand

You don’t need to give up on your long-term goals. But, you might need to prioritize short term survival in order to achieve your long term financial goals.

Don’t rip up your budget(s), but cancel any contracts that you don’t need, focus on accumulating cash for emergencies (job losses etc.), cut back on certain investments that are cash intensive, and ask for help if you need it. Financial survival is sometimes the best that we can do, and that’s fine. Give yourself a break. 

2. Do some damage control

How about limiting the damage the pandemic has on us?

Get your household budget out (or start one for the first time).

Look at anything that you could easily cancel.

Do you need your gym membership right now? Would it be more affordable to workout with YouTube videos?

Can you cope without some of your subscription services?

Could you spend less on clothes, fuel or cut out travel for a few months?

Then, if you can’t afford to pay all of your bills, you need to prioritize them.

Make some calls to your creditors and ask for payment holidays, or if you can reduce payments.

I know it can be scary to discuss money when we're feeling anxious, but you never know unless you ask. 

3. Find new ways to make money

Let’s be honest, there's only so much saving and cutting down that we can do. At some point we need to focus on expansion.

It’s a tough time; you might be working remotely, or not at all.

You may be worried about your future employment, or you might have already lost your job.

But that doesn’t mean that you can’t make money.

Some jobs are readily recruiting, delivery and food sales, for example.

Then, there are ways to make money online. You could teach online, trade with MT4, earn money as a freelancer, or complete surveys and market research.

You might not be earning what you’re used to, but every little helps. 

4. Be present - focus on the here and now

I know it’s not much consolation, but this too shall pass.

It’s more important than ever that we take each day at a time.

Today might be bad, but every little bit that you do today, ensures that tomorrow is a little better.

Do what you can, when you can, sit with the panic, breathe, feel into your body and don’t give up.

Keep an open mind to alternative ways to make money, and celebrate even the smallest good news.

It’s a challenging time, but it won’t last forever. Winter does eventually turn into Spring.  

What financial changes are you making or have you made during this pandemic?

Share in the comments section below.