It’s hard to keep a positive financial mindset with everything that is happening right now. Ever since the new year started, we faced one crisis after another. The world seems to be struggling with a lot of calamities left and right. We’ve gone through the threat of war, several volcanic eruptions all over the world, and even the bushfires in Australia.
But this one problem that we currently have seems to be above and beyond what we’ve experienced so far. This COVID-19 pandemic is wreaking havoc all over the world. According to reports, as of March 19, the coronavirus has affected 176 countries with more than 219,000 people infected worldwide. It is causing some countries, states, and cities to lockdown. People are being told to stop working and just stay at home.
As you can see, it’s not just a threat to our health. It is also causing a huge negative effect on our economic position. The global stock markets are going down and it seems we can no longer stop the recession this time.
When that happens (assuming it’s not yet upon us), how can you keep a positive financial mindset? We are all feeling stressed and panicked because this infection is spreading really fast. We feel paranoid seeing how it caused a lot of deaths in China, Italy, South Korea, and other parts of the world.
It seems like staying positive is quite difficult. And once you consider your financial state, it all gets even more devastating.
4 ways you can maintain a positive financial mindset
You may be wondering – how can you not feel panicked and paranoid? In the US alone, there are more than 5,600 positive cases of COVID-19. And this was on March 17. In some states, they have more than a thousand positive cases.
How much has that risen since then?
We’ve heard of the news of people panic-buying basic necessities. It left people with small financial resources with nothing to buy.
It’s very hard to keep a positive financial mindset especially if you are not sure about where all of this will leave us.
But the truth is, we need to force ourselves to be positive. Because there is life after COVID-19. You have to make sure that once all of this is over, you are not left with a huge debt. That your decisions now will not compromise everything that you have built so far.
That means you need to avoid using your credit cards during this time. It’s easy to give in to the panic and buy in bulk so you will not run out of supplies. But consider how your actions now will affect your future.
This is why it is important to keep a positive financial mindset. But how can you do that?
Here are 4 tips that you can use.
Look at your current financial status
First of all, get a clear picture of your current financial situation. Look at your savings, assets, and debt.
How financially secure are you? Do you have enough emergency savings? If yes, how long will it last? These are important questions that you need to answer.
Look at all your bank statements, accounts, and payables. You need to know what your financial resources are because it will help you determine how you can financially survive this ordeal. Once you have this knowledge, it is easier for you to feel in control of the situation. You know what you can afford and what you cannot. It becomes easier to manage your life from hereon. And that will help you keep a positive financial mindset.
Downsize to a frugal lifestyle immediately
After understanding your current finances, it is time to downsize significantly. You have to make sure that whatever resources you have can be stretched for as long as possible.
One way to do this is to live a frugal lifestyle. It might be too extreme to move to a smaller home at this point. But you can do something about your other expenses.
Since people are being advised to stay at home because of the COVID-19, you can use it as a way to save on expenses. Your transportation costs will definitely go down. And by limiting your shopping errands, you will be forced to plan everything and make yourself conscious about what you will spend on.
And if everyone is staying home, that means your bills will probably be bigger. To be specific, your energy bill might go up. Try to be as frugal about it as possible. Open the windows during the day and turn up the temperature at night. You can just add blankets to keep yourself warm. These are small things that can help you save on expenses.
When it comes to your credit responsibilities, choose your priority debt payments. This is a pandemic. Your creditor may be able to give you a reprieve and allow you to make smaller payments. Or they can let you skip a month of payments. Give them a call and ask about your options.
If you know how you can manage your finances, it will be easier for you to keep a positive financial mindset.
Find work-from-home opportunities
To keep yourself from panicking over the COVID-19, you need to keep yourself busy. In some areas, they are already asked to stay at home and not go out. Others will probably follow soon. Since you cannot go out to work, why not look for a work-from-home opportunity? You can find a lot of opportunities that are tied up in your field. There are small businesses that need freelance bookkeepers. Online writers, graphic artists, web developers, and other specialized skills that are in demand. You can even become a data entry worker. You just need an Internet connection and a laptop or desktop.
Just do your research to find options. When you are busy, it is easier to keep a positive financial mindset. You don’t have to think about your situation. And if it is a job that is making you busy, that means you can also expect some income to come in.
Know your options
While you are searching for work-from-home options, you should also research your options. If you are forced to stay at home because of the COVID-19 pandemic, what are the programs of the government that can help you? Is there a way for you to get food and basic necessities? What benefits or packages can you get from your employer? Where can you get help?
These are important questions that you need to ask immediately. This will help you determine where you can get the funds that will help you survive despite the fact that you cannot go out to work. And in case you or a loved one gets sick, what can you do?
You need to keep yourself informed about your situation. The more you know, the more you will feel in control of your life.
A positive financial mindset is all about staying in control
If you really want to keep a positive financial mindset, you need to make sure that you feel in control of the situation. It will help you manage the level of stress that is usually the reason why you feel negative about certain things.
But how can you stay in control? Here are some of the tips that you can do.
Staying vigilant and informed
We’ve mentioned that being informed is the best way to feel in control. First of all, you need to update yourself on what is going on in the country. How is the virus spreading? What are the plans of the government? What can you do to help?
The more you know, the smarter the decisions that you can make about it.
Another thing that you can do is to keep a budget plan. If you already have one, make sure it is updated. Maintain a frugal budget now because you don’t know when the situation will last. For sure, the government and your employer will extend help. But act as if they won’t. So try to make your emergency fund last for as long as possible. Create a budget and make sure you stick to it.
Finally, you need to spend your money wisely. You don’t have to be a credit expert, but you need to make sure that you will be very careful about how you spend your money. Ideally, you should stay away from using your credit card. But if it cannot be helped, make sure you use it sparingly. And you should use it as a last resort. Stick to cash so you can avoid overspending. You don’t want to end up having a lot of debts after all of this blows over.