Surviving COVID-19 Financially And Avoid Going Into Debt

At the tie of this post, the world has come to a halt with this virus. So many businesses are closed, and the markets are dropping. Many have lost their jobs, lost hours, and simply just don’t know where what to do next. Unfortunately, there is not a simple answer. There is so much uncertainty with how this will play out, and what it will look like when it is finally over. However, there are things you can do to limit the fallout.

Understand where you are at now

One of the main things I have seen and heard many doing is panic. Panicking will not do any good. Similar to stopping a panic attack, you have to ground yourself. Take an inventory of what you have both financially and materially. If you have been following for awhile or even someone like Dave Ramsey, you should have 6 months of savings. If you are coming here for the first time because everything hit at once, let’s a take a quick look at where you are at today. How much money do you have and what things do you have which you could sell if needed. You also need to make sure you understand your financial situation according to your budget. Still freaking out?

Understand worst case scenarios

When I budget for my own finances, I always consider the highest cost I could be hit with. I do the same thing as a finance manager for millions of dollars. Understanding and planning for the worst case scenarios is the best way to limit your panic. You know how bad it will get, and you can work your way backwards. Next, imagine yourself being at that point, what are some of the things you could have done to prolonged you getting to that point? Consider doing those now or shortly. Feeling better?

Figure out a game plan

You now know where you are at and the worst it could get. Now you can develop a game plan to help prevent you from getting to the worst case, and help you weather the storm in between. You have to know though, even the best plans can falter or fail. Having a plan will get you half-way there, you have to be able to adapt to the changes which will come.

Taking immediate action

There are so many things people are doing now that need to stop. The first one is to stop the hoarding. When you buy a ton of stuff up front, it limits the supply and creates unwarranted panic. The downside comes in a month when people are no longer working and running out of money. Those who bought a ton of unneeded supplies now, will be now be short to afford the needed essentials now. Even if you are not running out of money, you are still potentially limiting the supply for those who are in desperate need. Short answer, it is not doing anyone any good.

Remember this will not last forever.