The most important measure that you need to take at this point in time is that of seeing how much cash you actually have on hand right now – and the essential payments you need to make.
Be clinical and set up a strategy. We present 4 tips that you should take into account in your strategy:
The Government actions that limit your going out to the basic essentials means that you are probably spending less – on going out, on restaurants, petrol, self-care, revenue leakages such as coffees, lunch sandwiches, etc. which can become hefty over a year. Also, you are likely to spend less because the ‘staying-in’ period encompasses Easter – which normally entails an element of dishing out your well earned Euros on a trip to Gozo, a short trip overseas, dining out, etc.
Consider this money as your Emergency Fund if you do not have one; and if you do have one, then bigger your Emergency Fund the better.
If in putting together your money management strategy you find that you may have difficulties in paying the home or a personal loan or the utilities bills: contact the bank or utility companies immediately: before you start getting behind in payments. These Authorities are in a better position to assist you.
In an earlier post we brought to your attention the Covid-19 information page of the most popular banks in Malta. The banks are introducing measures to support their clients during these difficult times. Although the measures vary from bank to bank, yet they are all aimed to assist you on:
– home loan, cards limits, and overdraft repayments: such as a moratorium for a number of months on the payment of the capital and interest on the home or personal loan – thus providing you with a breathing space and allows you to have enough cash in hand for your essential needs.
Check the page of your respective bank – if possible hold an online or telephone call with your bank in order to work out which of these measures can apply to you.. There isn’t a one size fits all – the measure will be tailored to your needs and situation. From time to time banks may upload new measures which might be beneficial to your specific situation so it is advisable to keep abreast with latest information.
The Covid-19 virus has created a lot of uncertainty: when will the situation normalise? What will happen with the economy when things do normalise? How will my job and income be effected?
Now more than ever it is important that you prioritise your expenses by limiting your spend solely on those items that you really need on a daily basis.
Also, if you can, make sure that the prices offered are reasonable. Unfortunately, the media has reported a number of cases where some retailers have up their prices to make a quick buck during such an unprecedented situation.