Learning to save for a rainy day is an important life skill that we must hone every day. You must learn to save from your budget and know how to utilize that fund when you need some extra cash. A cash crunch can happen due to a variety of reasons like a job loss, a pandemic, recession, stock market crash or any other personal crisis.
If you’ve experienced a financial shock once, you are naturally inclined to be better prepared for another blow in future. This is applicable even when your savings are not affected currently. If you want to look for ways that can help you save more, then just keep reading.
Tips to Manage Finances in Tough Times
- Create a Budget: You must sit with your entire family and create a monthly budget. This helps you figure out a lump sum amount that you would need every month to meet all your financial requirements.
- Use High-Interest Savings Account: Make sure you open a savings bank account with one of the best banks in the UAE that offer attractive interest rates. As long as you maintain the minimum required balance in your bank account, you can earn a good amount of profits every month.
- Evaluate Your Spending: You must make a list of all your monthly spending and evaluate them to cut down the unnecessary ones. Make it a family discussion so that you have everyone in your family put in efforts in growing the savings.
- Prioritise Your Debt Payments: It is crucial that you set your priorities in terms of paying debts. Make sure you pay all your debts in full every month, including your loan EMIs, your credit card bills, utility bills, etc. You can also consider setting up standing instructions on your bank account for paying your fixed bills and debts.
- Get Financially Organised: If you have enough money to invest, figure out where to invest it. Make sure you remain financially organised and manage all your finances in an efficient way. This helps you save enough funds for the time when you would need them the most.
- Guard Your Credit Score: Pay all your debts on time and establish better relationships with the lenders to maintain a good credit score. A good credit score helps you easily apply for a loan or credit card if you need funds urgently.
- Consider Refinancing Any Major Loans: If you have any huge loans going on, make sure you contact your bank and consolidate or refinance all those loans. This helps you pay a single EMI for all the loans and have them cleared on time.
- Create Another Plan to Gain More Cash: You can also plan to join a part-time job to gain some extra cash and grow your savings. This helps you have enough money in hand at the time of need.
If you plan your finances right, you’re ready to meet all kinds of financial challenges big and small. The best part about banks in the UAE is that they offer higher interest rates and help account holders grow their savings in no time.
You can also contact our financial experts to seek assistance in managing your finances and plan them better than before. Our expert will take you through plenty of investment options such as bank accounts, fixed deposits, mutual funds and many more to help you multiply your investment in no time.