FINANCIAL GUIDELINES FOR THE SECOND CORONAVIRUS LOCKDOWN

Financial Guidelines for Every Family And Individual During The Second Coronavirus Lockdown.   

The corona is a phenomenon. The response to it depends on you!  Beware in a short term crisis not to make a decision that will be a long term financial disaster.

Guidelines

  1. Income: Treat the income you have today as a fact.  Try not to compare your income to pre-corona.  Appreciate what you have.  Calculating your precise income will help you streamline the expenses on things that are not really important to you Remember: For every income level, there are effective tools and solutions to be able to live within your means.  Everybody has the ability to live within their means.
  1. Be extremely specific about your personal situation since generalizations or assumptions decreases your confidence and ability to cope.
  1. Take control of your budget. Whether you worked with a budget or not, it is vital at the moment to work with a budget.  Review your expenses on a daily basis.   Review your budget to check whether expenses need to be streamlined.  Review very carefully all the budgeting clauses and decided whether you need it or just want it.  This is such a great exercise when streamlining expenses.
  1. To make the necessary transition during this pandemic phase depends on your decision that you have the ability to influence and make changes.

  1. Focus on finding income solutions. Be proactive and take control of the situation. Save energy – turn off lights, limit the use of the air-conditioner, plan when you use your over.  To give just a few examples. Sell unused items.  Swap clothes. Find a temporary job. Babysitting, courier jobs, cooking to give just a few examples.
  1. Make a decision that additional external funding is not an option. Do not wait for money or support from anyone – Take your financial decisions into your own hands. Remember: it is easier to reduce on a spot basis than to pay off debt.
  1. If you have a mortgage or an existing loan.
  • The Bank of Israel has permitted your mortgage or loan to be frozen until the end of 2020.
  • Remember freezing the mortgage or loans will increase your monthly payments in the future.
  • Consider refinancing your mortgage instead of freezing it. Interest rates are low.
  1. If you need funding – Prepare a financial plan so you can estimate what funding is required. Go shopping to find the cheapest interest rate on the loan.
  1. Specify the economic purpose of the period – to preserve the situation.
  • – If you were in excellent condition – keep it.
  • – If you were balanced – Keep it.
  • – If you were in the minus – do not increase it.

Focus on the present and not on the past