Latin America will not be exempt from the difficulties caused by the Coronavirus Pandemic and although until now the economic effects have not been as exaggerated as in other parts of the world, a warning has been made that cases could drastically increase in the coming weeks.
In times of Pandemic, the most important issue is of course health and preserving lives, but it is also necessary to protect the personal economy.
Saving if we have that opportunity and investing as a way to ensure financial stability in the short, medium or long term.
The restaurant, hotel and airline industries are among the sectors hardest hit by the crisis, but also self-employed and so-called informal workers have seen their earnings gravely decline or totally disappear.
Here are some useful tips to save and protect your personal economy during this time of Pandemic:
It is a good time to save if you are working from home
If you are receiving your salary and have decreased your expenses for transportation, restaurants, going out to cinemas and sporting events, this is the best time to save, especially given the job uncertainty that the Pandemic generate.
This case of those who although staying at home, still have increased their online consumption. Given this reality, it is preferable to be careful about using credit cards excessively, because there is uncertainty about how many people may end up losing their jobs due to the moment we are living through the Pandemic.
Be prudent if investing in the stock market
Although there are stock shares of companies that are very low, it is not a matter of launching yourself to buy all in the stock market. Rather diversify and ponder your investments to avoid taking excessive risks.
A mortgage is a good option
If you are sure that you can keep your job despite the circumstances, this is perhaps a good time to contact a mortgage that allows you to buy a home. Being able to make an initial down payment and search for good offers to appear in the real estate market. Central bank interest rates are falling, and projections point to their continued decline. This may be a very safe way to invest
It’s not a good time to buy airline tickets
Perhaps the idea of acquiring airline tickets seems to the offers now available, but we are not sure how long all these travel ban measures will last. In addition to this, we do not know which airlines present serious financial problems that could lead to bankruptcy.
Make sure to find out what is your health insurance limit
Although in Latin America most of the population uses public health systems financed by the State, those with a higher level of income pay monthly for private health insurance.
These commercial contracts vary not only from country to country, but also according to the specific health plan that the client decides to contract.
Generally, these plans include restrictions that users are often unaware of in detail, particularly when it comes to hospitalizations.
In many cases, these policies do not cover the expenses derived from medical treatment when an epidemic or pandemic is officially declared, given that these are circumstances of “force majeure”.
We all must be very careful with the use we make of our money in the present circumstances that the world is going through with the COVID-19 crisis. We must make sure that the investment made allow us good returns and open a course to new opportunities.
