Be Financially Proactive During Lockdown
Now is the time to seriously take stock of your finances. Acknowledge the reality of your current situation and also be honest with yourself about your prospects for the future. As the saying goes: “We cannot live on love and fresh air.”
6 ways to be more financially proactive
1. Draw up a budget
A budget is an excellent tool — and widely recommended by financial experts for a reason. There is no better tool to ensure you spend your monthly income wisely. When you know exactly how much money you have each month and what you need to spend it on, you can easily see if you have enough, need to cut down on some things or need help from a debt counselling company.
Tip: I suggest you create your budget “old school style” with a pen and paper. Not on a computer. We “connect” better when we write things down.
2. Distinguish between wants and needs
Make a clear distinction between your wants and needs. Be honest with yourself when doing this. If your income is limited during the lockdown, ensure that you’re spending the money you have on what your family NEEDS right now, before looking at what they want.
3. Make choices that work best for your current situation
If you are no longer working, and therefore no longer need your car to travel to and from work, ask yourself if you need that long-term vehicle repayment plan. Have you looked into all of your options? Perhaps it’s time to try and buy an older, smaller vehicle using cash.
4. Examine your current financial situation
Go through all your statements and insurance policies to get a good overall picture of what your financial situation is. Are you spending money on subscriptions and services you don’t use? Can you still afford to cater for your family’s basic needs? Know for sure.
5. Examine your credit agreements
Know exactly how much you owe on your assets, as well as your unsecured debt — which includes credit cards, personal loans, etc. Read through your credit agreements and statements. When you know how much you owe, you will know what kind of debt relief you qualify for, can ask for and who to contact for help during the lockdown.
6. Ask for debt relief, if you need it
If you have lost a portion of your income, are relying on UIF, have been placed on temporary unpaid leave or been retrenched, you may need debt relief to survive during the lockdown. Be proactive by making the decision to either try and contact your creditors directly or use the services of a debt counsellor to do so on your behalf.
If you do need the help of a debt counsellor, contact National Debt Advisors today.