11 Ways to keep your family afloat during the lockdown and financial crisis

2020 was an unprecedented year for everyone across the globe. Business came to a standstill, travel was restricted, flights were cancelled, curfews were imposed, lives, jobs, incomes, and livelihoods were lost. For the first time since the economic crisis of 2008-09, the world went into a panic mode. No one was certain of what the future held. We quickly realised that most of us are just a paycheck (or two) from bankruptcy without an income. Luckily, now we started gaining some form of normalcy after learning how we can curb this disease. The lessons the pandemic taught us will remain edged into our minds for a long time. Many people have started taking measures to cushion themselves should such a financial crisis occur again. This article offers you tips on how you can keep your family going as well, even when a crisis occurs.

1.    Have access to liquid cash

Imagine being in a situation where your movement is restricted, yet you need to purchase supplies for your home. Imagine having your money held in assets that you cannot easily liquidate and yet you need the cash to buy food for your family.

Whenever you find a financial crisis looming, it would be advisable to have some easily accessible cash. A person who has a few thousand pounds in the bank can weather the crisis better than a person who has assets worth millions they cannot dispose of. Have a ‘rainy day’ cash set aside for situations such as this one.

2.    Cut back on unnecessary expenses

This is not the time to visit a luxury hotel to splurge on luxury meals or accommodation. You have no idea how long the crisis will last, so you must save as much as possible. The monies you spent buying luxury items and food can be put to better use by buying essentials that will help you weather the crisis. In the house, find ways to minimize your running expenses. For instance, do not keep the heater running during the day to prevent electric bills from piling up. Live below your means.

3.    Dispose of items you do not need

You might have items that you do not need inside your house. Someone else may be willing to buy these items for you. Factor in how important these items are to you and dispose of what you do not need. You need cash flowing in to offset the amount you are spending to keep the house running. Use selling sites locally to sell where you can, here are my tips on how to get the best out of selling sites.

4.    Buy goods on discounts and sales

Keep an eye open for discounts and sales at your local mall. If possible, buy in bulk to save extra money. When shopping online during a crisis, seek coupon and discount codes. Try to bargain when buying goods. Many sellers may be willing to give you a cut if you ask.

5.    Look for ways to make money

Although many opportunities were lost during a financial crisis, you may be lucky to find that some companies are still hiring. If you can get a job, you are in luck. In 2020, for instance, companies resorted to hiring their workers online to work remotely. A remote job can keep the lights on in your house and cushion your family during a crisis. I have written about side hustles before.

6.    Start a business online

You could be having marketable skills that you can employ to start a business without investing too much capital. For instance, if you are an accountant, you can offer accounting services to companies or individuals for a fee. You do not need much initial capital investment to start such a business. Look for freelancing opportunities online. Companies will still be needing workers to drive their goals. Understand your value and how you can optimally utilize it to make some extra income.

7.    Go slow on investing during this period

You may have some money lying around and were planning to use it for investment. Although you may get good deals when people are trying to offload their assets cheaply to cover their living expenses, maybe this is not the right time to spend your cash. You do not know how long the crisis will last. You need to have enough money with you to weather the crisis for the longest possible time.

8.    Ask your family members for support

You may have everything set; You are trying to live below your means, you have cut down your expenses, and you are checking your budget. However, there is always that one family member who does not like to go with the norm. If you want to survive the financial crisis as a family, every family member must be on board with the decisions made, no matter how unpopular these decisions are. Everyone has to cut down on their spending. This is not the time to make lengthy phone calls or keep the heater running full time. When everyone understands that this is a temporary scenario, they are likely to oblige.

9.    Avoid impulse buying and stick to a budget

Whenever you go to the mall, have a specific budget for the basic ( and necessary) items that will keep you going. Avoid carrying too much money as this might entice you to engage in impulse buying. If possible, buy goods wholesale to take advantage of wholesale prices.

10. Lay off paying a debt for a while

If you have credit card debts to pay, try to negotiate for a debt holiday with your bank. If that is not possible, negotiate for lower payments stretched over longer periods. The goal here is to avoid giving away money or giving away as little as possible. Call your bank and renegotiate terms for other forms of loans (Mortage, business, car loans, etc) as well.

11. Return unpaid assets

Maybe you just bought a new car before the financial crisis hit. You will be required to submit monthly payments for the car whether you are using it or not. If you still want to keep afloat, you may consider returning the car. Of course, you will take a slight hit on the resale, but it will take off the burden of paying monthly for something you have no much use for at the moment.