How Covid-19 Has Affected Our Finances

Photo by Karolina Grabowska from Pexels

Regardless of whether you’re financially stable or struggling from one paycheck to another, the pandemic has certainly affected you in one way or another.

The threat of the virus is still present, but so does our daily tasks. That’s why we have to make sure that we still try to cope.

The bills are still piling up, and you still have to put food on the table, but with all the recent news about Covid-19, it seems like our struggles are far from over.

We’re currently experiencing the pandemic’s financial impacts, and unfortunately, we would still be affected by this in the years to come.


Impact of Covid-19

The country’s economic status was doing well before Covid-19 struck, which means that recovery would not be too difficult. Nonetheless, it would still be a struggle.

The pandemic has changed the entire world, and below are some areas where we have strongly felt this.


1. Household

The unemployment rate of the entire world has skyrocketed over the past months. This is because different businesses, companies, and other organizations had to shut down or reduce their operations to minimize damages.

Those companies that have tried to maintain their usual functions suffered quite a lot because ordinary citizens’ spending power has decreased, which means their consumers have lessened.

This led businesses to lay off some of their employees. Thousands of households were left to their own devices to try to earn money.


2. School

Because of the proximity involved in the traditional classroom setting, schools also had to close their doors and hold virtual classes instead. While this may seem like a great solution to continue the children’s education, it has presented lots of different problems.

For instance, some families are struggling to keep their finances in check, and the need for a laptop, smartphone, or internet connectivity might not be something they could add to their expenses.

Furthermore, some parents had to continue going to work, which means their children had to go to daycare centers, translating to additional expenses.


3. Travel

The travel ban imposed during the first few days of the pandemic may seem like a minor inconvenience because people just had to cancel their vacation trips.

However, when you consider that huge, multimillion-dollar companies rely on importing and exporting goods and taking business trips to enhance international relations further, the travel ban is actually very damaging to the economy.


4. Quarantine

There are many protocols we have to follow to stop the spread of the virus. Those who unfortunately got infected had to stay at home for at least 14 days.

The problem with that is some companies cannot provide paid leaves to their employees.

This means that thousands of households were forced to stay at home and pay for daily necessities without earning anything.


How to Budget During Covid-19

The first problem we need to fix during this pandemic is unemployment. This will solve the problems of many households and gradually restore the strength of the economy. The question now is this; with most companies or businesses reducing their operations, how are we supposed to find a job?

One solution is to look for side hustles and turn to industries that are currently booming. For example, since many people had to stay at home, they also earned more time browsing and surfing the internet. This is why the online industry was able to provide jobs for countless people.

Once we’ve found a source of income, proper budgeting is essential to alleviate the negative impact of Covid-19. Be sure to refrain from spending too much on takeout food and cook at home instead. This will significantly help you save money.

Another important aspect of budgeting during Covid-19 is to save up for the vaccine. The development of the different vaccines to be used is still ongoing, but gladly, it’s underway.

When saving up for a vaccine shot, make sure that the one you get has undergone screening for ACE2 inhibitors to guarantee that it’s effective.

Canceling subscriptions and generally spending less money on unnecessary items should also help you save up. Replacing your entertainment source with those that don’t require money is also the wise thing to do.

The pandemic has shaken the world and turned it upside down. However, we are resilient in nature, and this shouldn’t and wouldn’t bring us down. Keep your head high and ensure that your finances are secured to help you face this battle.

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