COVID-19 has affected each one of us. While some of us have found ground under our feet, there are several families still reeling from the dreadful aftermath of the pandemic. Many families have lost the sole bread earners of the families, forcing the children to look for employment prematurely. The interest rates and commodity prices are skyrocketing, compounding the problems. So, economic anxiety has become a common phenomenon among far too many families.
Most companies are taking the easiest way out to recover from the post-pandemic hangover, resulting in mass layoffs. This looming threat of financial insecurity is driving so many people to the edge of mental breakdown. Although the media may portray a rosier picture now that we are coming out of the financial slump, the reality is rather grave. Several families around the world are still feeling disempowered and unsure of how they can secure their finances. Hence, I am trying to offer you a few tips that can help you battle financial anxiety in these redundant times –
Go Back to the Basics
Though this suggestion may sound rudimentary, do not underestimate the power of budgeting. A well-planned budgeting can be the miracle to pull you back on the right track. Take your time to list all the expenses. Make two separate columns for your mandatory and optional expenses. For example, your groceries, electricity, and rent may all fall under the mandatory column.
On the flipside, your Netflix subscription, restaurant expenses, or Uber bills will go into the optional column. Understanding all your expenses and segmenting them will help you to assess your financial condition in a better way. Once you understand it better, you can take the right strategic decisions to meet your short and long-term financial goals.
By looking at your financial position from a holistic viewpoint, you can redirect your spending more wisely. Cutting any unnecessary expenses will help you create a fund for desperate times. However, be realistic while preparing your budget. Sometimes, everyone requires a little bit of pampering and self-care to replenish energy. So, consider these expenses while cutting the budget. Just make sure that your occasional self-care routines are not coming in the way of your savings.
As long as you can be firm in meeting your financial goals, occasional visits to Starbucks or a movie won’t hamper your long-term goals. Thus, meeting your financial goals will not only statistics assignment help you to save money, but you will also feel empowered.
Plan for Redundancy
Redundancy is not something people love to hear. However, brace yourself because the trends hint at that. The world will most likely face redundancy this year. According to reports, more than 30% of the major companies are going to lay off a large part of their workforce in the current financial year. COVID-19, followed by the global recession, are two major blows for these companies, and redundancy seems to be the only evitable way.
If you are worried that you may face a similar fate down the line, this is the time to plan for it. Do not expect to survive that phase by depending on your existing savings. Keep that locked to save your family’s future. Instead, create a separate fund, and start churning that money in various smart investment options. In the worst case, if you lose a job, ensure that you will get a minimum amount every month for at least the next three months. At the same time, start searching for other employment options by sending out CVs. This will save you from living in the constant fear of “what-if” scenarios. You can also alleviate the financial anxiety if layoffs do happen.
Know Your Rights
Know about the rights you are entitled to. Read the company policies and governmental rules and regulations about labour law. If you get the dreaded notice, this knowledge comes in handy. Many companies try to shed their responsibilities by paying a meagre severance pay. Check with the company policy about how much you should get in case of an unfair layoff.
You should also check if the redundancy happened fairly across genders, age groups, and work positions. Many employees have mental health issues or disabilities already disclosed to their employers. In such cases, companies may spare you on humanitarian grounds. Depending on the government laws, you can also challenge the companies if you feel you have been unfairly treated.
Don’t Feel Shame
Societal norms force us to be embarrassed and feel shame when the topic is about the financial crisis. But at a time when the whole world economy is falling apart, such topics should never be shrouded in shame. A survey revealed that fifty-eight per cent of the global population feels lonely and lost during financial stress. It also revealed that a staggering fifty-one per cent of the global population feels ashamed when they go through financial troubles. The post-pandemic situation acts as a catalyst and makes them feel even more miserable.
However, stop feeling shameful and embarrassed about your financial condition. Do not let a pandemic disempower you. As discussed in the first point, take control of your finances in your own hand. If you aren’t sure how to manage your finances, talk to a financial expert. The investment officers have multiple ways to help you to overcome the losses and rebuild from scratch.
Their advice can come in various forms and can help you deal with minimising debts, saving for redundancies, or creating wealth for the future. However, the road to redemption must start from your end. Shed the fear and shame of losing the job and start working on it instead of spiralling down.
Adjusting to a new lifestyle post-redundancy can be tough. So speak with career counsellors and psychologists if you need a mental boost. Simultaneously, follow these four tips to take bold strides towards a successful future, even in the darkest times.