By Leroy Ferrao
Money is an important resource and if not managed properly, it will mismanage you. How do you develop the skills to protect your money? Here are 5 steps to help you navigate your life with strategies that can safeguard your scarce resource during the Covid-19 pandemic and beyond.
#1.Protect your money by cutting spending
Stop spending your hard earned cash immediately on non-essentials. The world is waiting to snatch it from you, the time it reaches your bank account. During the Covid-19 lockdown, I spent cash only for food and utilities and was surprised how much of it was saved when compared prior to the normal times. These are my only three recommendations to spend your money wisely. Firstly, spend on health. You must protect your health by eating nutritious organic food or else you will have to spend on medicines. Secondly, shell out your cash on health supplements and immunity boosters and If you think how expensive it is, think of the cost you will pay by getting infected with Covid-19. Track your each penny of your spending each day and the data collated will help you make prudent decisions of using your money intelligently. Cut spending and protect your hard earned resources from making others rich.
#2. Protect your money by downsizing
Downsize as soon as possible. What do I mean? If you have a big house or apartment, shift into a smaller one. Renegotiate every deal you have entered with your vendors or utility providers. Search for cheaper deals. Sell your car as it is a depreciating asset and consumes a big chunk of your cash balance. Finally, it loses it’s value through depreciation every year. Cut subscriptions that are recurring and deplete your resources. Stop purchasing clothes as it is another depreciating asset. Don’t buy but repair old appliances as they are better than the new in some cases. Use it till it is beyond repair. Compare costs before buying from different options. Live a minimalist lifestyle. Bring your monthly cost down and secure your available financial resources.Â
#3. Protect your money by cutting travel
If you are working remotely online you will never need to travel far way. You can do video conferencing or use the phone and save both time and money. Gone are the days when travel was an essential part of life. Majority of the population are online line now. It is also unsafe to travel due to the pandemic and increased crime as frustrated people who are depleted of their financial resources are resorting to robbery, murder and burglary. Even if your employer demands that you travel to work, it is time to renegotiate the job contract. Moreover, if you travel out of the state or country there is a quarantine period you will have to fulfill, plus testing and lodging charges. It doesn’t make sense anymore to go into the past by travelling long distances. Order online to save time and money . Travel smart. Use a two-wheeler for short travel. By following these recommendations you will save not only time but money in the process accelerating your progress in life.
#4. Protect your money by a new income stream
You must be prepared for the worst-case scenario. You can lose your job,business or cash flow due to the economic pandemic caused by the lockdown. Have a Plan-B in place. You need to start with a new income stream within the next six months online. Any new venture requires time and you can use the current opportunity available to move forward in your journey. The new income generating activity should solve a genuine problem that people are facing today and the additional income will cushion your finances in case you face the worst-case scenario.
#5.Protect your money by investing in technology.
I find it hard to comprehend how people can buy a car or a smart TV but do not have a laptop or internet connection in their homes. A laptop is a money generating asset and a gateway to get connected to the online world. You will require a good internet connection. I would personally recommend that each family member has their own laptop and also a smartphone to leverage the power of the internet. This is not an expense but an investment. You will be able to earn while you sleep. Furthermore, it will assist you to make good use of the resources available on the internet Here is where self-education comes in the picture and even if it means investing your money to acquire knowledge. Thus you will protect your financial resources during these troubled times by its wise use.
In conclusion, money is a tool, learn to protect it and use it wisely for your family and your precious relationships and it will be easier to navigate the troubled waters during your lifetime.
I would like to hear from you and in case you would like to ask any questions please do so.
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