Managing your cashflow during COVID 19

Taking care of your banking and your budgeting during the spread of the Covid-19 is a challenge. We have put together some tips to help you manage banking and personal finances during the pandemic.

As many countries around the continent undergo lockdowns and other social distancing intervention, we all face several challenges and concerns including the ability to pay expenses or debit orders on time.

We've compiled some pointers to help ease your concerns, so that you can take control of your banking and budgeting needs.

Know your expenses

Now is the time to get a clear view of your monthly expenses and spending habits and how these may need to change. Create a new or adjusted budget that factors in your current situation.

• Previously, you may have spent your earnings according to the '50-30-20 budgeting rule', where 50% of your monthly income went to car repayments, home loans or rent, and monthly groceries, 30% to entertainment, trips to the salon and eating out, while 20% of your salary may be spent on debt payments, petrol and savings.
• But as all non-essential shops close and your movement is restricted, your spending habits will drastically change. You may need to factor in buying more groceries than you normally would for the week or month while the entire family is home-based.

Cancel all non-essential expenses

• Take a look at debit orders and auto-renewing subscriptions you may have and assess whether there are any non-essential expenses you will be able to cut back on.
• Make sure to check the T&Cs to check for any cancellation clauses or penalties before you hit pause.

Communicate if you are experiencing financial difficulty

If the pandemic has had an impact on your salary, or resulted in a job loss, you may be worrying about how you can pay your bills. If this is the case, do not delay and contact your creditors first to make a payment arrangement. We have implemented several debt relief options across the different markets we operate in, if you’re struggling to repay your debt with us or to meet your financial obligations, please contact your local office (click here for country list) and we’ll do what we can to help you.

Save money where you can

As your spending habits change during this time, you will probably be cutting back in areas, like entertainment, shopping or visiting the hair stylist. Take the amount that you would normally spend on these activities and place it in a savings account. This will not only provide you with a buffer during these uncertain times, but can also help to build up emergency savings.

Remain aware and conscious of online security

During trying times, criminals take advantage of the chaos and confusion, often using scare tactics to fool you into sharing sensitive information. Take action to protect your personal data and avoid becoming a victim of cyber-attacks.

Here are some steps you can take to secure your personal bank accounts:

• Never disclose security details (such as your PIN or full password)
• Don't assume a text, phone call or email claiming to be from your bank is genuine. If you're not sure, contact your Banker directly.
• Create secure passwords that contain a combination of letters, numbers and characters
• Never give your PIN to anybody via telephone, e-mail or messenger
• Don't use public computers to do your online banking
• Always make sure your anti-virus software is up-to-date.

Remember, that this pandemic will pass and it is important not to panic during these tough times. Panicking may lead to rash financial decisions, which could have an impact on your finances later down the line.