Money Management Tips for Women Amid the Coronavirus Pandemic

A survey by the Center for Monitoring Indian Economy found that the unemployment rate was 23.8% during the last week of March, with labour participation dropping to 39%,  according to Bloomberg Quint. During a global pandemic like the coronavirus, women are more likely to experience financial distress due to unemployment and lost hours of work. As a woman, you play multiple roles from a household manager to a consumer or even an entrepreneur. Therefore, it is essential to have excellent money management skills to ensure you pay bills on time and save for future expenses. By shopping wisely, cutting costs, and investing, you can enjoy the benefits of financial planning throughout lockdown and in a post-COVID 19 era. Please check if you are financially ready by taking the quiz given below?

There are several reasons you should apply for a personal loan amidst the coronavirus outbreak. Personal loans can help you consolidate credit card debts or settle emergency bills, like vehicle repairs and medical expenses. They are also convenient, flexible, and timely approved. So, if you have lost your job recently, find yourself struggling financially, and have a low credit score,  securing personal loans with bad credit is worthwhile.

It is worth noting that bad credit loans come with a higher interest rate than other forms of financial relief. In most cases, lenders do not ask for collateral when approving these types of loans. Because of this, they charge high-interest rates to cover the risk involved. Nonetheless, it’s possible to apply for a secured personal loan if you have equity in your home. Opting for a secured bad credit loan amid a crisis is a reasonable way to keep your debts as minimal as possible.

You need to know how much debt you have and what creditors expect from you. That way, you can easily come up with a strategy to repay outstanding balances. When taking inventory of your accounts, make sure to include your current mortgage, student loans, and credit card payments. After creating a list, calculate the sum, and develop a plan.

If you are fortunate to be able to continue working, make sure to keep up with all your debt payments. In the case, you’ve lost income, contact your lender or creditor. Inform them of your situation and work together to find a solution that works for both of you. Banks, for example, are giving customers a break for credit card repayments and delaying mortgage payments for up to 12months. You will only need to contact them and negotiate a solution that fits your current situation.

Whenever there is a global economic crisis, the impact reflects on your household budget. That is why you should evaluate your spending plan and then find ways to cut on unnecessary expenses. You may want to forego the costs linked to future travel, excessive online orders, and costly memberships until the pandemic is over.

If you are like many women, you may tend to overspend when it comes to groceries and clothing. Try to limit food expenditure by stocking up on groceries and toiletries. Make sure your groceries and other essentials can last for a month. This trick will save you the cost of travelling every week to go shopping. Also, encourage your family to utilize daylight savings. Rather than spend the entire day on gadgets and watching tv, engage children in homeschooling and offline games. This might help reduce the cost of energy bills while keeping them engaged without the use of technology.

According to Ms Benjamin, the founder of Ladies Finance Club, withdrawing from your superannuation should be the last option. Continuous withdrawal of savings will not only increase the chances of running out of finances now, but you also stand losing approximately $200,000, throughout your working years. You should aim to have a minimum of six months worth of shopping money in your emergency fund account. Maintaining your cash reserves prevents you from financial distress and the possibility of taking a 401(k) loan.

In a challenging situation, though, you may borrow from your 401(k) account for essential needs like mortgage payments and medical costs. While these may sound appealing, there are reasons you shouldn’t withdraw from your 401(k) account. Borrowing funds from your retirement account can get you into bad loans because you have ease of access. Another downside of 401(k) loans is that they accumulate non-deductible tax.

Although saving during uncertain times can be difficult, it is essential. Consider opening an emergency savings account, if you don’t have one. Eliminate non-essential costs like gym subscriptions or other membership fees. Alternatively, you can suspend retirement contributions temporarily, negotiate internet and phone bills, and utilize free tv trials.

Following these steps will help accumulate a substantial amount that you can survive on for weeks or even months. Additionally, use readily available supplies in your house to avoid overspending.

As much as the global pandemic is disrupting our livelihood, it also creates a perfect opportunity for investing. But before you can start buying stocks and shares, you need to be cautious of scammers. In times of crisis, they persuade vulnerable investors, especially women, into buying unprofitable stocks and real estate properties. If you are unsure about the stock market, review your retirement account.

Depending on your plan, you probably have suitable investment options. Investing in mutual funds, exchange-traded funds (ETF), or a diversified index fund, is advisable. Avoid purchasing stocks that you have little knowledge about, regardless of how cheap they may be.

Surviving through the global pandemic with limited income is possible. The key is to ensure you have a financial plan and prioritize essential needs like food, healthcare, and shelter. It is also vital to have a substantial amount of savings in your emergency funds and invest where you can.