Becoming Financially Resilient During The Pandemic

Life as we knew it has been flipped upside down because of the ongoing global health crisis due to COVID-19. Jobs are changing, how we work is changing, and how we educate is changing. It will be a while until things fully return to normal. So have you thought about how this situation could impact your finances going forward? You may have already seen it impact your money, through spending more, but earning less.

Resilience is being able to deal with anything that life throws at you. It is something that is vital to learn, in business and in life. Learning how to be financially resilient is another aspect of it, and in times of crisis like what we are facing, it is vitally important. Having savings, being on top of your finances, out of debt, and other things, are all aspects of being in control of your finances and being financially resilient. Then if something like job loss or redundancy comes unexpectedly your way, you will be better equipped to deal with it.

If you want to take control over your finances at the moment, then it is important to look at what your government is doing to help. Of course, this can vary from country to country, but they want to help to keep jobs going and keep economies running, so that is a point of call, if your work or business has been impacted by the pandemic. Here are some alternative suggestions to help you to take control of your finances in uncertain times, and to help to build your financial resilience.

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Salary Packaging

If you’re not sure what salary packaging is, then let me explain. It is an Australian Tax Office approved way to reduce how much of your income is taxed, leaving you with more take-home pay as a result. It is worth knowing the many benefits of salary packaging to see if it is something that could work for you as an employer, or as an employee. Things like cars, mortgage repayments, and other living expenses can all be paid pre-tax, meaning that you do save and it is more tax-efficient, and leaves you with more money, at the end of the day.

Budget

Having a budget, and sticking to it, is one of the best things that you can do, if you want to take control of your finances. Looking at a new budget at the moment can be a good idea, simply because your financial situation could have changed quite a bit by current events. Have a look at what money you have coming in each month, and then what your expenses are (these could be less than normal, at the moment). Then you know what you have left to save or clear off debts with, if at all.

Extra Income

At the moment it can be hard, but if you are in need of more money, it could be a good idea to look at ways of getting an extra income. For example, it could be worth looking at something like Uber, if you have some more time on your hands. There are quite a few online options too, if you want to use this lockdown time to earn something extra.

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