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Covid-19 In The UK: How To Reduce Financial Shock Risk During The Outbreak?

There are over 280,000 confirmed coronavirus cases in the UK right now. However, the pandemic is affecting not just the health of individuals residing in the UK but also their finances.

In addition to this, Aldermore Bank shared a worrisome report that people who fall in the age bracket of 55 to 65, which makes up 43% of the total population, have no retirement plans or savings to make ends meet during unfortunate events like this.

During this ongoing outbreak, a financial advisor shared some tips on managing living expenses and saving funds, which you should definitely check out down below.

What to do if you are stuck in a financial crisis?

A financial advisor has said that in times like this, financial support is still available for people who are in financial crisis. People can always get benefits such as ESA or Universal Credits from their local government.

Another available option is to get a statutory sick salary from their bosses. Also, there is a lot of money available in the form of charitable funds where you don’t need to pay the charity back. Anyone who is financially stuck somewhere should visit the website Turn2Us to look for the benefits they might be entitled to as well.

Make sure to have cash on hand.

It is quite unfortunate that the virus is affecting households all across the UK and the rest of the world. It is of no debate that many employers are now more prone to stress and pressure as many people are already concerned about their jobs too.

However, those who are most likely to be worried about the financial hit and job security are the ones whose family members have gotten in contact with the virus and are suffering complications. This situation is why it is advised to save funds in the form of cash, as one can never know what the day might bring.

Spend less; save more.

Calculate your expenses, including utility bills, mortgages, and food. Make plans for the next three months and stick to the layout of spending your money specifically on that. If you don’t have any cash reserves yet, try to start saving now as it might help you hold against the financial shock risk in the possible future.

By doing that, you’ll not only know how to manage your finances but will also not need to look for short term borrowing such as credit cards, just to meet day to day spending.

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