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So, how do you manage your finances during this pandemic?
The availability of cash or savings is very important in the pandemic era. Because there are many risks or unexpected events that we could potentially experience.
Emergency funds will be useful when we lose income due to layoffs and others. Emergency funds are measured by how much you spend, the size of each person's emergency fund is different.
Provide an emergency fund of at least six times your regular monthly expenses. However, especially for those who are married or have a business, it is not wrong to allocate 12 times monthly expenses considering the many unexpected expenses.
Be alert, don't panic
Anything that smells of panic will cause losses. Panic buying makes a person buy things that are not really needed in a short period of time. Meanwhile, panic selling will erode a person's investment capital that has been accumulated over a long period of time.
Take good note of all your monthly needs and shop as necessary. Hoarding goods is certainly not a solution.
Don't let your monthly expenses exceed your income. If this continues, current assets in the form of savings, cash and cash equivalents will continue to be eroded over time.
Don't neglect protection
Not all risks can be overcome with emergency funds, such as layoffs.
What if we have an accident, suffer a critical illness, die while we are still productive. The COVID-19 pandemic will actually increase existing risks, therefore protect your finances from these risks by having the right insurance.
Old Age Needs Should Never Be Forgotten
Even though this pandemic looks very scary, remember that this Corona virus pandemic will pass. Don't let this event ruin your long-term goals. When emergency funds and protection needs have been properly met, it is a good idea for us to pay attention to our long-term goals. Call it something like the need for retirement funds.