Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20
QE4EVER! - 9th Sep 20
AMD Ryzen Zen 3 4800x 10 Core 5ghz CPU, Cinebench Benchmark Scores (Est.) - 9th Sep 20
Stock Traders’ Dreams Come True – Big Technical Price Swings Pending on SP500 - 9th Sep 20
Should You Be Concerned About The Stock Market Big Downside Rotation? - 9th Sep 20
Options Traders Keep "Opting" for Even Higher Stock Market Prices - 8th Sep 20
Gold Stocks in Correction Mode - 8th Sep 20
The law of long-term time preference and Gold ownership - 8th Sep 20
Gold Bull Markets: History and Prospects Ahead - 8th Sep 20
Sheffield City Centre Coronavirus Shopping Opera Ahead of Second Covid-19 Peak - 8th Sep 20
Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
From Trump’s TikTok Mess to US Tech Cold War against China - 7th Sep 20
The Federal Reserve vs. Judy Shelton And Gold - 7th Sep 20
Fed Dials Up Inflation Target…Own Gold - 7th Sep 20
Does Gold Still Have Plenty of Potential? - 7th Sep 20
CDC Shock Admission - THERE IS NO PANDEMIC! Over 90% of Deaths NOT From COVID19 - 7th Sep 20
Stock Market SPX to Gold/Silver Ratios Explored – What To Expect Next - 7th Sep 20
Is the Precious Metals Market really Overwhelmed and Chaotic - 7th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Tips for Managing Your Personal Budget During Coronavirus

Personal_Finance / Financial Education Apr 22, 2020 - 06:05 PM GMT

By: Submissions

Personal_Finance

The coronavirus pandemic, the fall in oil prices - all these are parts of a single crisis that people are experiencing. There is a high probability that we are only at the beginning of the road, and all possible precautions will not be superfluous.

As the great Warren Buffett said, "when the tide is replaced by the ebb, you can immediately see who was swimming naked." This rule is useful to remember in order to organize your finances in a truly reliable and efficient manner and for managing your money. Here are some simple tips to help you feel much better in the next crisis that will inevitably come.


1. The power of the cache

We are already used to various credit cards, Apple and Android Pay, other modern payment systems via smartphone. It seems that nothing can prevent it from continuing to use all this. True, some people already had experience, for example, of calculating at the cash desk of a large store or in a foreign restaurant, when your card doesn’t work, it will be easier for them to understand what we’re talking about. In the era of coronavirus infection a large number of people, which, of course, can be included in those who serve our credit cards in various banks, such failures cannot be ruled out. That is why in these difficult times it is better to carry several cards of various banks with you, and it is even better to have a certain amount of cash in your pocket, which will allow you to overcome difficult situations with honor.

2. Savings

The problem of everyday settlements smoothly leads us to the fact that it is necessary to build up cash reserves and houses that will allow us to live normally when banks fail (or maybe just stop working) for one reason or another. We think that the amount should be in the region of monthly expenses per family, and it is better to constantly maintain this supply within the given boundaries. For those families where there are elderly parents and relatives, we would significantly increase this size, bearing in mind the possible costs of medicine. And please do not be too lazy to change large bills, so that it is convenient to pay for the delivery of food or products without change. This is in case of voluntary quarantine.

3. Audit of expenses

Once you have secured uninterrupted financing of your current needs, you can go further and look at family income. Are they in danger? Can’t reduce your place in the company? Will your business survive the crisis or will you have to tighten your belts? Count on the worst and, if necessary, adjust your plans and upcoming expenses. Find (or buy) research paper on this topic on artscolumbia.org – a free essay database, if needed. For example, it might be better to postpone the purchase of a new car, or you should not take a loan for the purchase of an apartment. In general, a little caution and prudence will not hurt anyone.

4. Parade of assets

Now is the time to look at your assets. What do you have? How is your money invested? Is everything good there? The situation has changed, and it’s possible that something is already too tough for you. Let's say you have invested $ 100,000 in a two-year structural product that is linked to the growth of shares in technology giants such as Apple, Facebook, or Alphabet. They sagged a lot, and you can lose a lot of money. It is worth contacting the investment company and once again saying everything - it might be better to leave this product ahead of schedule if there is such an opportunity. It is worth worrying about those who have large investment portfolios abroad. Analysis of their current state and verification of “communication” with the manager will not hurt.

5. Roadmap

It will not hurt to look at your long-term plans again. Do you need to change anything there? For example, in a year your son graduates from high school and for many years, you saved up for his studies at a prestigious English university. Money was invested in the US stock market, and portfolio valuation has already fallen by 25% this year. This is a sign of alarm. What if it gets worse? You need to sit down and take everything into account, make informed decisions together with your investment adviser if any.

6. Field of miracles

Do not give in to these difficult times to various “attractive” offers. You can often hear: “Crisis is a new opportunity!” For whom? For a professional speculator? For new customers? For those who have never played these games and are not going to do it?

For an ordinary private investor, a crisis is usually a disaster. If this is your case, then it is better to carefully analyze your losses and decide what to do next. An honest and open conversation with yourself is the best thing you can do now. Remember that no one can predict the future and everyone relies on the old experience, but this time everything can be much worse. Only based on your personal circumstances and plans should you make responsible decisions yourself.

7. Safety margin

A financial “pillow” should be in every family. It is believed that this stock should last for 6-12 months.

Conclusion:

Any crisis has one big plus, and many smart people use it. It is what Warren Buffett had in mind in the aphorism from which we began this article. The fact is that the crisis perfectly highlights all the mistakes that you made - both in choosing a personal financial strategy and in the tactics of its implementation. For example, during a coronavirus epidemic, the owner of a restaurant or travel agency will immediately realize that it was a mistake to focus only on this business and invest all their money there.

By Jessica Vainer

© 2020 Copyright Jessica Vainer - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules