Money Rehab. From Piggy Bank to Biggy Bank
“They tried to make me go to rehab but I said No, No, No…”
If we’ve learned anything from lockdown is that we only really need the essentials. One would think that most people would take that lesson from the covid-madness that had us on lockdown for months! But no, as shops start to reopen, we’re back to our old habits of spending…
With job losses that occurred worldwide over these last months one would expect people to emerge more money-wise. So if you haven’t yet, then perhaps it’s time to begin money rehab..
1. Cut out any and all things you don’t need.
No, I didn’t say cut down. Yes, this is going to require a lifestyle change, at least for now until (hopefully) things get back to normal. You’re going to have to be frugal as hell. Pay your rent, pay your debt (whatever you can cover or call your creditors if you’re going to miss a payment) and just buy the necessary food to keep you alive. This is what it’s come to people.
2. Don’t go investing in the stock market
No one’s buying anything right now. Unless you have money to burn, you might want to hold off on stock market investing. In some countries, companies have halted dividend payments for a whole year. The big guns, including Warren Buffet aren’t buying anything right now.
3. Check your insurance policies
Do your insurance policies cover your mortgage payments or cover accident and sickness or unemployment? Insurance companies often try to make you forget you have cover. So call them up and check. This takes a while to come into effect (a few months in some cases) so get calling now.
4. Save your money
I don’t want to harp on about saving like Dave Ramsey. I’m all for investing and making lucrative money moves, but since no one really knows where this economy is heading, better you know where your money is. Save it. For now.