Everyone has certainly been affected in some way since the Philippines first imposed community quarantine and travel restrictions to slow the spread of COVID-19. With businesses closing and employees losing jobs, the pandemic has changed the way people live their lives, including how they handle their finances. With so much up in the air, people struggling financially, since it’s difficult to save up for the future when nothing’s sure about the present.
But there are ways through which families can better handle their finances so that they can not only survive, but even thrive during this unprecedented time. Registered financial planner Edric Mendoza emphasizes the importance of frugality or “pagtitipid,” instead of being stingy or “kuripot,” as a principle to survive financially during the pandemic.
Mendoza, who is also an edupreneur and business anchor, mentions the importance of building liquidity or cash that can be easily accessed for any emergencies that families may need. He adds that with families staying at home, they can also cut on their expenses in terms of wants and needs, as there are many things people do not need when working or studying from their home.
There are also expenses called money vampires or money mosquitoes that accumulate when added together, such as electricity, water, and groceries, which families can cut down on. If families usually pay for their utility bills on certain dates, Mendoza advises them to keep paying them at the same rhythm if possible, even if they are given more time or if the payments are temporarily waived.
And finally, another effective way to survive the pandemic financially is by looking for other sources of income, especially online. With many businesses pivoting online, there are many job opportunities that people can take on top of what they’re already doing if their schedule permits. Repurposing assets, or selling some of the things at home that they don’t use, is another viable option to make extra money during the pandemic.
For Mendoza, it all boils down to frugality, which he believes will change the way people handle money. With the COVID-19 pandemic still affecting the country, he advises people to build this principle of frugality. However, he also encourages people to embrace it after the pandemic, as it will truly change the way they handle their finances.
For more tips on financial survival and other financial ideas, you can watch FUNDamentals, a show hosted by Mendoza, on PLUS Network. For more stories for professionals, visit Plus Network on Facebook, Instagram, Twitter, and YouTube.