Staying at home in the time of coronavirus pandemic has certainly turned a lot of people into savers. Simply by not eating out, shopping for non-essentials, hosting parties or even driving to and from work, consumers are able to cut a sizable chunk of their financial expenditure.

However, while the crisis presents a good opportunity to kick the big-spending habit and start saving, it can be a crucial time to make financial blunders. 

As the pandemic takes its toll on many companies, there have been many reports of job losses, and uncertainty of the future remains despite attempts to restart economies. So, consumers would do well to take the necessary steps to safeguard themselves, their family and their money.

“While this may be a good opportunity to save, it is also a financially perilous time,” said Paul Evans, head of Middle East and Africa at global wealth manager, Quilter International.

Evans suggested that savers find ways to maximize what they can put away each month “to give them a safety net.” One of the things people need to do during these uncertain times is to review the state of their finances before opening their wallets or making any financial decisions.

Review

To achieve personal economic security, it is important that people sit down and take a look at their incomings and outgoings before doing anything else, said Evans. 

“Review, review, review,” he advised. This is crucial especially when a person’s circumstances have changed, he added. One of the areas to look into are bills that can be reduced, as well as purchases that can be avoided or cut down further.

Take small steps

For some people, starting to save is a difficult task. If anyone is really serious about making their nest eggs bigger, taking small steps is a great way to start.

“Make small changes,” Evans said. While people can feel frustrated that it’s difficult to put away regular amounts each month,  setting aside even just a bit of money can make a big difference in the long run. “Challenge yourself to find a way to save just a little,” he said.

Speak up

Keeping all your personal battles to yourself can take a toll on mental and physical health. As the virus continues to rage and dramatically change people’s lives, it is important to talk to others instead of bearing their burdens alone, said Evans. While you may feel it’s the end of the world, remember that there are many other people “who are in the same position as you,” Evans added.

So, for instance, if the outgoings are too much for you, ask a family member to help. “If you are not in charge of the household finances, then ask the person who is. This needs to be an open and honest conversation,” Evans said.

Avoid scams

While the pandemic has kept everyone focused on staying safe, it doesn’t mean scammers have ceased their fraudulent activities.  Watch out for unauthorized individuals or groups who solicit donations for instance, especially when they ask for your credit card details or personal information.

“Scammers thrive in times of uncertainty and vulnerability and so, be extremely cautious of anyone asking for your financial details,” said Evans. 

Take care of your general wellbeing

With fears over coronavirus infections still growing, it’s easy to lose sight of one’s personal wellness. Find ways to keep the mind at ease. Laugh and stay healthy. “Anything you can do to ease your mind and boost your wellbeing in this time is vital, be that exercise, meditation or talking to loved ones,” said Evans.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

cleofe.maceda@refinitiv.com

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