FINANCIAL STABILITY: HOW TO SAVE EFFECTIVELY

A Free Webinar to All

I. RATIONALE
The COVID-19 pandemic has been labeled as a black swan event that caused a ripple
effect on every aspect of human life. This includes several social and economic
challenges not only in the field of business or any other profession, but also at home as
to how one’s financial capacity on a daily basis is severely tested. This webinar offers
well-crafted and practical propositions on financial management that will act as a
roadmap to potential financial opportunities to achieve the primary purpose of building a
more equal and sustainable society during this pandemic.

II. INTRODUCTION
The United Nations (UN) and other bodies like the International Monetary Fund (IMF)
have noted that the pandemic will increase inequality globally and risk a global economic
depression. An additional 8% of the world’s population are predicted to fall into poverty.
In this context, the researchers examine some over-arching observations providing a
context for understanding the pandemic’s impact on every individual’s finances and
simplified steps to acquire better money saving tips at this time of crisis.

III. COVID-19 Response in Low-income & Middle-income Countries

COVID-19 has now reached low-income and middle-income countries. The public health
response in many countries has involved strict restrictions on movement and economic
activity (e.g. closing workplaces, banning gatherings, restricting travel) and others are
considering imposing similar policies. Domestic measures, as well as similar measures
adopted globally, are likely to have an immediate negative impact on household
incomes, and might threaten the livelihoods of households who are already vulnerable
economically.

IV. 5 Questions To Ask Before Spending

1. Do I need It or Just Want It?
2. Can I Borrow It?
3. Can I Barter for It?
4. Can I Get It Used?
5. Can I Get By Without It?

V. FINANCIAL LITERACY
A person's level of financial literacy determines their ability to manage their resources
properly throughout life. A person being able to manage funds/cash owned by being able
to feel prosperous concerning his finances and conversely a decrease in one’s well
being can arise due to poor financial management behaviour.
VI. 7 Daily Saving Tips To Consider During This Pandemic

1. To free yourself from debt is to limit your spending to only the essentials.
Separate your wants from your needs.
2. Know where your money is going; keep track of your spending!
3. Have some of your paycheck directly deposited into your savings account.
4. Cut or downgrade your services.
5. Cut down on take-out ordering.
6. Try lowering your energy bill.
● turn off appliances and lights when they are not needed
● when you can, use a fan instead of an air conditioning
7. Be careful about spending a significant amount of money on periodic purchases.

VII. 10 Suggestions to Manage Money in the Time of Crisis

1. Learn What the National and Local Government is Providing in This Time of
Crisis
2. Learn About Possible Hardship Adjustments in Financial and Other Contracts
(Different Payment Options and Due Dates for Credit Cards, Taxes, Bills and so
On)
3. Revisit and Create a Budget to Manage the New Conditions Imposed by the
Crisis
4. Rebuild Over Time a Buffer Stock of Savings
5. Take Advantage of Lower Interest Rates and Fluctuating Stock Markets
6. Take Advantage of Online Technology to Manage Your Money as Well as to
Compare Terms and Search for the Best Offer Available
7. Manage Debt
8. Protect Your Credit Score
9. Watch Out for Fraud
10. Take Care of Yourself and Your Health

Source: https://gflec.org/education/financialresilience/

VIII. RELEVANCE
As a society, we now know that we will need to better prepare for the next crisis. An
important step in building a more resilient society is to make financial literacy a reality for
all. Direct financial assistance from the government is clearly part of the solution to this
crisis, but in today’s economy, people are expected to make many financial decisions
affecting their finances now and far into the future.

❖ Saving money takes DISCIPLINE and a certain amount of SACRIFICE.

1. Saving can give you freedom

 - It gives you cash reserves that you can use when and how you need it in the
future.
2. Saving provides financial security
- It can serve as your insurance or you can keep the cash for unexpected
expenses and emergencies.
3. Saving means you can take calculated risks
- It is a way of investment and the cash you reserve is for the purpose when you
need to take a calculated risk with less worries.

The importance of saving money is to allow yourself to enjoy greater financial security in life. It
is our hope that these resources and strategies will provide some help and information for
people who are overwhelmed by the economic fallout of this crisis and do not know where to
turn for assistance.

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