Managing Your Finances During COVID-19
                     Managing Your Finances During COVID-19 
Since  the  outset  of  the  COVID-19 pandemic,  businesses  in  the  restaurant  and hospitality
industry have been hit the hardest economically, especially with local and state restrictions and
social distancing measures put in place, personal and business finances have felt the effects of
the pandemic.  During times of economic uncertainty, it  can be easy to  feel  overwhelmed,
especially when it comes to your finances and when you own a business, the headache can be
even  greater.  According  to  a  recent  survey  from  the  National  Endowment  for  Financial
Education (NEFE), they found that nearly 9 in 10 Americans say that the COVID-19 crisis is
causing  stress  on  their  personal  finances.  It  is  evident,  the  pandemic  has  disrupted  the
economy of the nation in unprecedented ways. This disruption in the economy has caused
scores of small businesses to close permanently and many people to lose their jobs. Fin
ances.
Research Your Options Finances.
During times of great uncertainty, researching your options to stay afloat financially is a good
starting point. Knowing what do if  you can’t  pay your bills  is essential for protecting your
assets. Maybe rent can be difficult to pay this month, it can be helpful to communicate with
your landlord, as they are probably worried about payments as well. In addition, if you owe
back on your student loans, you may be overwhelmed and bogged down by the amount you
still need to pay back, yet many lenders have begun making accommodations to offer relief
from the stress of COVID-19. Finances.
In  response  to  the  pandemic,  the  government,  and  many  banks  and  credit  unions  have
temporarily adjusted their lending policies to better alleviate the financial hardship that has
plagued businesses. In addition, the SBA loan program have provided small businesses with a
helping hand which has helped them stay in business. Finances.
Budgeting Money for Personal Finances
If your paycheck or business income dried up due to a layoff, reduction in hours or lack of
business revenue, you need a realistic crisis budget. Initially, if you are looking for savings
benchmark for your emergency fund, it will depend on your monthly expenses and the stability
of your income. The Certified Financial Planner Board of Standards teaches the following rules
of thumb: Finances.
• If you are a single-earner household, you need a minimum of six months worth of
expenses saved. Finances 
• If you are a double-earner household, you need a minimum of three months worth
of expenses saved. Finances. 
• If you are a  single-earner household,  with a  second source of sizable income,
you need a minimum of three months worth of expenses saved. 
Expenses includes both fixed and variable costs. In other words, how much you spend in a
regular  month on everything that  allows you to  maintain  your  lifestyle,  mortgage or  rent
payment, car, food, credit-card payments, etc. Finances.
Budgeting for Businesses Finances.
For businesses, it is a little different and there is no denying it; all business owners need a
solid emergency fund. While you are in charge of your own income, it’s bound to fluctuate and
you may have some rougher months as a result. This is why it’s best to be prepared with a
fully funded business emergency fund that you can fall back on during lower income months. If
you are self-employed or run a business, you are probably wondering how big your emergency
fund should be, well there are a few tips to consider. You can start by considering how much
money you have been spending in your business over the past few months. It’s important to
know your monthly numbers so you can then decide how long you’d expect your funds to last.
Finances
For a business owner, it also critical to evaluate the industry you are operating in. Would it be
easy for you to pivot and change your products or service offerings if the market changed? If
your business is diversified, you will likely have a better chance of earning a consistent income.
If you have a seasonal business or do work in a very specialized niche, you will want to set
aside more money. In regard to how much money you should set aside for backup funds,
setting aside an amount that is most comfortable for you and that brings you the most peace
of mind is a good way to go about it. For business owners, 5 to 12 months worth of expenses
is a good amount to set aside, which means that if monthly expenses for your business is
$25,000 per  month,  you  would  set  a  maximum of  $300,000  for  a  12-month  safety  net.
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Emergency Savings in the Bank a Good Idea? Finances.
Having to deal with a pandemic, such as the cornonavirus, is why everyone is in need of a cash
reserve. It is highly recommended to always keep your emergency funds in an FDIC-insured
bank  or  high-yield  savings  or  an  NCUA-insured  credit  union  savings  account,  so  it  stays
completely safe and accessible 24/7. Both FDIC and NCUA coverages protect you against loss
up to $250,000 per depositor, per insured institution, per ownership category (such as single
or joint accounts). The coverage includes your principal balance plus any interest accrued.
Emergency funds are the backbone of strong, personal financial plans. Managing your budget
can be a challenge for some people and can be a stressful process, especially if you have an
unexpected emergency pop up. By building up a savings buffer (an emergency fund) you can
be prepared to pay for unexpected emergencies without having to turn to credit card debt,
family loans, or other borrowing options that create unnecessary stress. Finances.
Staying Focused Finances.
Staying  focused  is  key  when  you  are  trying  to  manage  your  finances  during  challenging
economic times. As circumstances are constantly changing, remember you are not alone and
there  are  resources  available  to  help  you  navigate  and  safeguard  your  finances.  Staying
focused on how you can protect your money is vital to a favorable financial future. Evaluate
and adjust your spending plan, cut back on expenses and work with lenders and creditors to
explore your options. Finances.
To learn more, about how you can get financial assistance, click here.