Covid-19 or Corona Virus has created mass hysteria and panic across all economies causing major economic setbacks. If you are looking for that kind of hysteria here; I’m disappointed to say you won’t find it.
I haven’t lost hope and you shouldn’t either. Emotions are running high; the news we see every day is overwhelming causing us to feel uneasy about the impending doom and uncertainty. All I can say is not to panic but approach this situation cautiously.
Have you been forced to take a haircut or forego a paycheque?
It’s no secret that all things have been shut down for weeks, supply chains disrupted and some large corporates being pushed to the brink of filing for bankruptcy. So, if your work place has closed its doors its your time to calmly regroup and get your financials in order. I will try to give you some sensible options but first take a deep breath and sit back.
Did you? No actually do it. Okay good, now let’s see what we can do about this.
8 things to do when you don’t have a paycheque end of the month.
1. Get on a budget.
If you aren’t still living on a budget, there is no better time than now. Having a budget is imperative so that you know exactly where the money is going. Without a budget you cannot stretch every rupee you have. When you budget in details it will also show you where your discretionary spending is ( more on that later in point 6).
There are plenty of free apps ( personally I love “Mint” & “Wallet” available both in andoid app store and apple app store) which can be used to make this task easy. Don’t try to write it down on paper and crunch numbers.
If you don’t have any sort of passive income that is fine too. Arrive at the total savings under your name and budget exactly what you are going to do with every rupee. See how many months you can last under your current budget. If your spouse is also earning take into account the total income and do the same. Try to live off one income making some drastic lifestyle changes if you have to, just so you weather the storm.
2 Focus on the four pillars
Like Billy Ocean sings “When the going gets tough the tough get going ?”. Right now you only need to focus on things absolute necessities to survive. I call these the four pillars of survival. So make sure you pay for these four before you focus on anything else.
- Food
- Utilities
- Shelter
- Transportation
These are the basics that need to keep you going so that you can live another day. To be honest you really can’t fight another day when your family doesn’t have food on the table. So if there is no food on the table find some expenses to cut.
After you pay for these four pillars then make a list of other expenses you need to make and rank them in the order of importance before you tackle them. If you run out of money start eliminating from the bottom and compromise. If you are on rent, call your landlord, be honest with them and they are more than likely to help you out if you have been a good tenant. So pick the phone up and make that call.
The majority of people need some form of transportation to get to work. If you can downgrade ( for example if you are renting a vehicle ) by all means please do. Do not try to sell your vehicle (leased) during this calamity. The forced sale value will be very much lower than the market rate and this should be the very last option.
3 Pause your loan payments
If you have any form of personal, housing, or vehicle loans write to the lending financial institution and see if you can negotiate a grace period. The majority of the local banks will help you work out a new payment plan provided you have been consistently paying your installments on time.
If you have credit cards make the minimum payments for now. Remember don’t let your family go hungry for the sake of maintaining your perfect CRIB record.
4 Focus on Highly liquid assets
This is time to dig deep into what you own. Be radical (but don’t go trying to manufacture hand sanitizer at home) and see what else is available that could be sold to make extra money. There may be unnecessary baby strollers, jewelry, clothes, cameras, or even electronic appliances sitting in your garage. If you know you haven’t used it in the last 12 months, you can jolly well live without it. Part with it, get that extra cash in.
5 Temporary job/ side hustle
If you are out of a paycheque see what other skills you have which could be made resourceful. Is there any part-time work you could get?
With the majority of the country in lockdown there is little work that requires help. Look at the possibility of working for a food delivery company or working for a distribution centre. See if you have any skill which could help you make some money online (copywriting, logo designing etc.). The mantra is “every little bit helps”, so keep looking.
6 Look for rupee seepage
Look at every expense line and see if you really need it. Look at the possibility of downgrading at least one or two mobile connections, pausing your Netflix subscription, any meal delivery kits ( organic food deliveries etc.), and subscription boxes.
Remember four pillars is our focus. Social distancing has encouraged us to stay away and curtailed many opportnuites for us to indulge in “wants”. As a result your friends probably won’t force you to go hit the pubs over the weekend and that’s good news for your budget.
Remember this is not forever, this is a temporary sacrifice until you are back up in your feet.
7 Pause your insurance payments
If you have health insurance, life insurance or motor insurance talk to the insurance provider as there are many options to convert the policy or halt the policy while enjoying the benefits (albeit at a lower policy value).
8 CONNECT WITH YOUR LOCAL COMMUNITY
Remember when the times are tough and you are helpless there is always family or friends who might be able to give you a hand. Many temples, churches, mosques, and Kovils are already looking at helping their community in whatever way they can. Take time to help each other and more than anything ask for help if you really need it.
Like everything else this too shall pass. Leave a comment on our Facebook page if there is anything else I missed.
Also read up on our previous post “Time is money, or is it?” when evaluating your purchase decisions