The Corona crisis has caused economic difficulties worldwide, and Sweden is no exception. It can be difficult to know how to act in the future regarding one’s personal finances when the entire world is in crisis. The most important thing to bear in mind is that this crisis will eventually come to an end, despite the fact that the road ahead appears to be longer than expected. So no big financial decisions should be made as a result of this pandemic: money invested in stocks and the like should be left alone until the situation stabilizes.
In addition, it is recommended to take good care of personal finances, as the situation may worsen in the near future. The second wave appears to be more and more possible, and could lead to a major economic downturn for the Swedish economy – which is mainly dependent on its exports. This is what you should think about in terms of personal finances during and after the current global situation.
Small business owners are hardest hit
The most financially affected by Covid-19 are small business owners, especially those who work in the tourism industry. For these people, it can be difficult to find a balance between company finances and personal funds. It is important to keep them separate, and to ensure that personal finances remain stable, even in situations where the company appears to have failed.
Trying to pay off several loans at the same time during an economic crisis is not easy. Concurrent loan repayment includes many different minimum payment amounts and are usually higher than the necessary interest rate. With Refinancing the loan You can collect all of your previous loans in one place, so you get the opportunity to get a lower interest rate and lower monthly payments.
Obviously, this means more money at the end of each month and a higher level of financial security. Refinancing is a particularly attractive option for those who have previously used loans where the standard is high interest rates, such as SMS loans. It can be difficult to pay off these loans within a reasonable time frame and can have future issues with an enforcement official if you are not careful.
Not always the situation of the stock market as it looks today
The turmoil observed in the stock market recently may be alarming, but that does not mean that you should panic selling. It is best to wait for the pandemic before transferring your shares, as the market may stabilize. As with most things in the financial world, it is best to think long term, otherwise you risk losing large sums on your previous investments.
Buffer makes a big difference
If things go wrong in the future, it is important that you do not end up in a situation where you have to borrow money from family and friends to stay alive. So saving for a buffer is essential to a secure personal economy. Usually a three-month salary is sufficient for most emergencies. If income drops or you suddenly lose your job, such a barrier can relieve stress and contribute to a more moderate transition period.
Many small streams make up a large river
Covid-19’s personal finances should not be subject to drastic measures or panicked financial decisions. Small, but good financial options are all that is needed to ensure a good economy during the pandemic as well as in the future.
In short, the following should be considered for the private economy:
– isolating area. If the need arises, then you need funds to be available until the crisis is over.
Refinancing. Many small loans involve higher monthly expenditures and can lead to an emergency if an individual’s personal finances deteriorate.
Leave investments alone. Eventually the situation will stabilize, but it is important to be patient.