How to manage your finances through the Coronavirus impact
The Coronavirus outbreak brings uncertainty to our economy and livelihoods. During these uncertain times you may have to take time off work, face drop in income because your employer has to temporarily lay you off or reduce your work hours. It is therefore important to manage your finances responsibly and prepare yourself for the weeks or months ahead.
Things you can do right now to manage your finances
The situation with the Coronavirus epidemic changes quickly, make sure to keep up to date on the latest situation from the DVG (Directie Volks Gezondheid) and the Government of Aruba for available relief measures.
If possible, try to set aside some money in case of loss or reduction in income. You will also need to look at what expenses you have and work out the best ways to fund them in the short term. Follow these steps.
Step 1. Make an emergency budget
Identify what income you have (and others in your household). You may have income from your salary, from your business, pension or different sources.
Identify what you are spending on.
You will have fixed expenses each month like your mortgage or rent, insurances, utility bills, food and child care. Make sure to list also variable expenses, these are expenses that vary depending on the month, such as school fees, dental treatment, car tax etc.
Prioritize your expenses and see if you can make payment arrangements or try to lower your expenses.
Step 2. Track your spending
Keep track of your day-to-day spending, so you don't live beyond your current means.
Look at your bank statements from the last couple of months, see where you might be able to cut down on your spending. You can view your statements online using Aruba Bank Online and use the Aruba Bank App to check your balance and to track your spending. By tracking your expenses you are less likely to spend on things that are not necessary to you and your family in the current situation.
Step 3. Look for ways to cut down your spending
To help making your current income go further aim to cut nonessential spending from your budget.
With the current ‘Shelter in place’ measures, it should be easy to cut entertainment spending. But you can also be smart about your food spending.
You may need to cut back on many expenses to get through the weeks ahead.
It may be tough, but you will be pleased you did it once it is over!
Step 4. Consider Savings
If you still have your normal income or a partial income, then consider putting money aside for the weeks or months to come. Even a small amount can make a difference!
Step 5. Talk to those you owe
There is uncertainty surrounding how long the Coronavirus outbreak will last, how bad it will get, when the economy will recover, and many other variables.
Call our Contact Center on 527-7777 during business hours, if you need to discuss your mortgage, insurance, loan or credit card payments, due to loss of job or income.
Look ahead and stay healthy
There is uncertainty surrounding how long the outbreak will last, how bad it will get, when the economy will recover and many other variables.
The important thing to do now is to manage your finances responsibly and cut nonessential spending where you can. But don’t forget what is really important – your health and the health of the people you care about.