The COVID-19 pandemic is now rapidly moving through the globe, especially in the United States. It has affected many lives, including our daily activities, work, and finances.
During this challenging period, it’s crucial to think about our financial health, especially if you have loans to pay and depleted savings. We all want to survive and start strong after everything.
Here are some practical ways and tips to protect your money and help guide your start-up after the coronavirus outbreak.
Get Notified and Don’t Ignore It!
Your credit card companies and banks are sending out notifications on how they will continue to operate and the changes they have to make because of the pandemic. You should be aware of and pay special attention to these updates.
Note the special working hours, what branches will continue to operate, and what services they can accommodate in their physical office. It’s probably more practical to use online and mobile services, so try to familiarise yourself with your bank’s app.
If you need any assistance, try to check your bank and credit card company’s official website. Most companies are using online chat to assist you with your concerns.
Doing any banking transaction on your phone will prevent you from any unnecessary trips outside. Just be careful with any phishing emails and scams. Only do transactions with your bank’s legitimate websites and apps to ensure security.
Being able to stay on top of all your business’ bills and payments will prevent any unnecessary work and stress once the pandemic is over. It will also prevent any debts or bills piling up.
Prepare for the Worst
Preparing for anything worst in every situation will allow you to face difficult times more manageable. You’ll probably be fine, but anything can happen in a pandemic. Ensuring your business is perhaps one of the best moves to make.
Business insurance protects any losses due to circumstances that may occur during the natural course of business. You can get several business insurance coverages that may include property damage, employee-related risks, or legal liability.
If you already insured your business, try to contact your agent if you can adjust the policies to cover any pandemic related instances. You can always re-evaluate your insurance to cover all the necessary risks, depending on what your company currently needs.
Take Advantage of Loan Financing
The government has an active economic response to the pandemic. There are also plenty of credit institutions that offer more friendly policies on loans and debts. Take advantage of this opportunity to secure your business.
Our economy is currently unstable. Thus it is essential to focus on paying off the debt your business already has. Doing this will allow you to eliminate bills that you need to worry about and debt payments that are consuming your profit.
The best way to lessen existing debt like credit card loans is to make significant repayments. You can prioritise credit card balances for a refund from either lowest to highest balance or highest to lowest APR.
You can also try getting a debt consolidation to secure your business’ current debts. If you are not familiar with debt consolidation, CreditNinja has professional financial advisors to guide you to the process.
Once you’ve settled your previous debts, it’s easier for your business to jump-start. Being able to start on a clean slate is a great advantage over competitors.
Skip Unnecessary Fees
You should check if there are fees you can skip especially for the services you won’t get. You can also choose what services you will continue or shift to facilities that could cater to you while staying safe.
For example, you may want to cut your office’s wifi connection since no one will be using it. You can also cut magazine and newspaper subscriptions if you have one.
As for any company trips that you’ve booked in advance, check if you can move any reservation indefinitely or refund the whole trip. It’s most likely that you and your employees won’t be able to travel anytime soon.
Cutting off unnecessary expenses and getting a refund on services you won’t use will give you more money to save. Securing additional savings will help your business to operate again as our lives also resume.
Try to Learn More
Since you are spending most of your time at home, make it worthwhile by learning and improving some skills. There are plenty of free business-related courses you can take online.
You can learn almost anything, from project management courses, language training, and even financial classes. Getting a free financial or business class will allow you to understand further how to manage your company effectively.
You can learn about smart investing, budgeting, and strategies for managing debts and loans. Getting in-depth knowledge about your finances is useful once this pandemic is over because it can help your business to recover.
This current situation is a hard toll on everyone, but don’t allow it to take a harder toll on your finances. Being smart and efficient is always a smart move to make.