There is no denying that COVID-19 has a significant economic impact on the lives of individuals in society. The pattern of our society’s life today will not be the same as before. With the uncertain economic situation, it is important that we prepare ourselves adequately. Because of that, many people were affected – some were fired, wages were cut and even many businesses had to go out of business due to this pandemic. In order to organize finances, a person basically needs to understand their financial situation first before making any decisions especially in the current uncertain situation. This COVID-19 demands all parties including individuals to make changes in the way of life including in managing finances. All individuals in society, whether single or married, should manage their money wisely and prudently. Knowledge of individual financial management needs to be practiced such as preparing a home budget according to the level of need. Buy things that are necessary according to their importance. Household financial planning needs to be managed more objectively. The main thing the head of household needs to understand is what to spend.
For that purpose, several things need to be emphasized before any expenditure is implemented, including taking the following steps:
1. Save emergency money
2. Determine the use of money
3. Record and analyze the flow of money that goes in and out every month.
4. Identify fixed and variable income and expenses
5. Take advantage of any incentives obtained from the central government or the state government.
6. Adjust your lifestyle to the new normal
Adapting the lifestyle to the financial situation is very important because it can avoid getting stuck in debt. Good financial planning practices among households are expected to stabilize the family economy and prevent households from facing financial deficit problems.
Covid-19 has taught us a lot about financial management for the future in order to weather critical times well. In short, distinguish between wants and needs. Good spending practices should be implemented to ensure that financial resources are not wasted.
