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One of the lasting effects the Covid-19 pandemic has had on the world is the massive toll it has had on individuals and businesses’ finances. During the multiple lockdowns imposed by governments globally, thousands of companies had to close up shop and wait their turn to open their doors again, every day losing more and more money due to a lack of turnover. This has caused tremendous strain on countless families, and many have since had to re-evaluate their lives and adapt to the hardships the pandemic has caused industries everywhere.
But, there may be a few things you can consider in order to take some stress off your shoulders and deal with the cards that have been dealt productively and efficiently. That said, here are some options to consider when struggling financially.
Downsizing your home can make a massive impact on your monthly expenditure and enable you to breathe more easily while doing some damage control.
The first step to downsizing is sitting down and establishing what your needs are and what you can go without.
Do you need an extra guest bedroom that only gets used once or twice a year? Have your kids moved out since buying the massive family home and have left you with a house that is too big for you and your partner anyway?
Evaluating what you currently have and what you can go without will help you find the optimal sized home that still ticks all the boxes and serves its purpose entirely. Downsizing can also save you loads of money on your mortgage and allow you to focus more on your next move instead of worrying about your finances 24/7.
If you have acquired some debt over the past year that has landed you in a bit of a tricky situation, there are steps you can take to ensure you don’t get further into trouble.
You can try getting some advice from an expert who specializes in debt and can help you find a solution that will be easy on your pocket on a month-to-month basis. You can also do some research on What is an IVA to acquaint yourself better with the options available to you. Alternatively, charities such as Stepchange and Christians against Poverty are highly recommended as the first port of call for free debt assistance.
Restructure your budget
It doesn’t sound very fun at first, but restructuring your budget for the time being can take a major weight off your shoulder and allow you to approach your situation with a set plan in mind.
Have a look at your current budget, evaluate what your current expenses are and where you can cut back; takeaways, excessive shopping, and date nights are all things that can be reduced for the time being. Don’t worry, it’s not forever and can always be brought back at a later stage when things normalize.
It can be hugely stressful going through financial struggles, but one thing it definitely does to a person is make you stronger. By keeping a level head and tackling each task with logic and the added guidance from industry experts, you’ll build resilience and keep moving towards healthier finances.