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Things we learned financially in 2020
Many of us don't focus on our financial positions unless a crisis hits.
23:21 10 February 2021
And that is where we go wrong. It would be best if you were up-to-date with your finances. This is something we learned the hard way when covid-19 began last year.
Though, 2020 has been tough, we need to take a few lessons from it and forge forward. We are not out of the woods yet, but you need to be smart about your finances this year. Here are some of the things we learnt financially in 2020 to help us get back on our feet in 2021.
7 things we learnt financially in 2020
- Digital payment
The pandemic has made things easier for us when it comes to shopping and making payments. Previously one had to go to the malls or supermarkets to purchase products. That proved to be costly if you’re using your car or public transport to reach the place.
But when the pandemic began, malls and stores had to be shut down. This forced retailers to move their products online and the same applied to bank transactions. Thanks to digital payments, you can conduct bank transactions and even order for products while browsing.
All it takes is visiting the site and selecting the product desired then making payments via PayPal, pioneer, or visa card. Once this is done wait for house delivery which is the life we need to get used to amid the pandemic unlike before. There is no need for moving from one point to another, searching for products and paying bills. All it takes is your Smartphone, and you are good to go.
- Always keep your dues up-to-date.
Loans have become a part of our lives, and financial institutions are ready to offer you the cash. Whether you want a long or short term loan, the institutions can grant you the cash. But the funds have to be paid within the tenure discussed. And this applies whether there is a pandemic or not.
Yes, financial providers might give you a grace period during the pandemic, the interest still grows. The interest changed on principle is calculated according to the deferment offered, during the period. To be on the safe side, read the terms and conditions and remember the devil is in the details. Once you ascertain the loan is favorable to you request for the cash.
However, if you find it hard to repay the loan on time, call your provider and inform them of your financial status. Provide a genuine and honest review of your financial position, be polite while doing so. You will be surprised at what the lenders offer you as a repayment plan.
- Insurance
Your insurance premium should be up to date; this is something we’ve learnt during the pandemic. Considering the medical bill accrued when one is admitted in the hospital due to the virus. That’s why you need your insurance premiums paid on time.
A good example is auto loans which are supposed to be paid. Though your car might be damaged, it doesn't exempt you from paying your premiums. If the damage is more than your car's value, the insurer will declare it a total loss.
On the other hand, if the auto loan you owe is more than the insurance paid you'll owe the firm's difference. For this reason, read through the insurance policies before subscribing to understand the terms and conditions.
Whether its business, vehicle, health or life insurance it has to be paid on time to avoid incurring any extra cost when a disaster or an emergency happens.
- Debts are manageable amid a pandemic.
Debts are manageable whether you’re amid a pandemic or disaster. Yes, you might be struggling to meet your payments due to various factors such as job losses, pay cuts or too many debts. But there is a smart way to do things, and you'll have an easy time.
The first step is contacting your lender as discussed above to renegotiate your payment terms. After this is done, review your income statement and see which pending bills can be cleared first to avoid accumulating interest. This means you'll have to cut on expenses to cover the bills.
The last thing to do amid a pandemic is to check what the government brings to the table amid a pandemic. This includes stimulus packages and loan grace period. For example, the Bayanihan Act mandated financial institutions to offer their clients a grace period of 30day. This was a bill passed by the state to help in mitigating the effects of the pandemic.
- Opportunists are there even amid a pandemic.
If you’ve the perception that during a pandemic people will be sympathetic, then you are wrong. There are individuals out to make themselves rich and exploit others in the process, even amid a pandemic. Humanity has been thrown to the wind to make themselves extra coins.
This is why you need to be careful during a pandemic. Always be keen about people who approach you for favours either online or offline. You might receive an email about a Gofund me page for an individual. But, in the end, it was a means to make quick cash.
The other trap most fraudsters use is pretending to contact you on behalf of your bank or Credit Card Company. Whenever you receive an email or call from unknown numbers, take time and don't quickly give out your personal information. It would be best to call your bank and ask directly about the information. And if you suspect it's a scammer trying to fish for information, contact local authorities. Never use a third party to keep your information and data safe and secure.
- Be careful with loans and credit cards
2020 has been a year full of disappointments and pain. Most have lost their lives others jobs, while business was forced to close their doors. Though it has been a painful and long year, we can take a few lessons to the bank. That includes being financially smart, being accountable for each coin we spend in 2021.
Plus the year has just begun, you might find yourself unable to take care of your recurrent bills. This is due to the financial mistakes you made, but there is no need to worry. If you decide to take out a loan, choose your lending company carefully. Check its presence in the state register, availability of a license, and study reviews about it in social networks.
Robocash is here robocash.ph/articles/personal-loan to facilitate your recovery. The company has been operating in the Philippines for several years and is part of an international financial holding company. Here you can get an urgent loan of up to 25,000 pesos for up to 30 days. Visit Robocash website and make your loan request. However, borrow what you can repay on time to maintain a good credit score.