Managing Your Personal Finance during the Days of COVID-19 Pandemic

The Corona virus outbreak is the most-discussed topic all over the world now. It has jeopardized our daily lives and brought the world economy to a moribund. This article is thus, essential for you. Here I’ll discuss the present economic situation of the world and Bangladesh and also the ways to manage your finances in this pandemic.   

What is the World Facing?
The pandemic has spread to more than 187 countries of the world; there are over 3 million confirmed cases, and more than two hundred thousand deaths. It not only affected our health but also dug its claws into our economic, social, political – every aspect of our lives. There’s no telling when this outbreak will end; thus has affected the world economy quite severely.

The largest economies of the world, like the US, UK, China, France, Germany, Italy, etc. are falling vulnerable now. There are high chances of a big recession as a result of the current situation. Lockdown has been materialized in most of the heavily affected countries. It has caused unemployment to skyrocket and productivity to fail. 

What is the Economic Situation of Bangladesh?
More or less, every country in the world is facing massive economic difficulties now. Of course, the situation is not bright for Bangladesh either. Though small, the economy of Bangladesh is a fast-growing one. But the current COVID situation has this country in a bind too.

The economy of Bangladesh is hugely dependent on the garments, import-export, remittance, etc. sectors. This pandemic has forced many countries to close borders and limit interactions. Thus the business deals with those countries with Bangladesh have come to an end too.

The garments sector is a major economic sector of Bangladesh. For controlling the Coronavirus outbreak, the country is enforcing a lockdown. For this, many of the garments workers are not being able to work; and hence, are not getting paid. A lot of the remittance workers have recently returned from abroad, having lost their jobs. Also, a considerable portion of the population work as day laborers or minimum-wage workers, who are also not earning any money now. A lot of small businesses and entrepreneurship have closed down.

Overall, Bangladesh is facing a downfall in almost every economic sector. It is already a weak-economy country. Under the current situation, its economy might completely crumble.
What You Can Do
The future seems bad for all of us; it is likely that we won’t be able to escape the brunt of the economic difficulties generated by COVID-19. But you can minimize the damage by managing your finances. If you want to secure your future, you have to act now. Read the following steps to learn how to design your personal finances in this pandemic.  
How You Can Manage Your Finances
It’s essential to start planning your finances now; there’s no telling what lies in the future. Follow these steps to structure your money inflow and outflow.
·        Create a Budget:
The first step to manage your finances is to create a budget. Calculate your income and expenditure; try to find ways to minimize the expenditures.

·        Your Bills Come First:
Prioritize paying your bills; because overdue bills will take out more from your wallet with fines.

·        Save:
Try to avoid unnecessary purchases. Try to save as much as you can and make future budget plans.
·        Emergency Savings:
The whole COVID-19 situation is an emergency one. Save some of your money for emergency uses like paying hospital bills, buying medicine, etc.

·        Get Your Payment:
If you have any payments pending, let your payers know. Make a list of your income sources and calculate the amount of money you will have access to each month.

·        Check for the Stimulus Packages:
The government has declared various stimulus packages to support low-income, vulnerable communities. Check if you are eligible to receive such financial aid. Contact the authorities to get aid if you’re eligible.
·        Get a Loan:
This isn’t a highly advised step, but you can take it as a last resort. If there’s no income source for you right now, consider getting a loan. But keep the interest rates and the loan payback deadline in mind.  

·        Stay Updated:
On top of all, stay updated. Keep track of the government-provided privileges, aids, and stimulus packages to avail them while they are accessible.

·        Don’t Lose Hope:
Don’t get too hopeless. The pandemic situation is indeed frightening, but we will get through it. Don’t waste time despairing and manage your resources instead.

 So, these are the ways to manage your finances during COVID-19. Adopting these can help save you from the direct hit of the upcoming economic crisis.  Your future won't be that difficult if you plan on dealing with the ups and downs early on. Hope you stay healthy and solvent.

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