Physical and financial health in the face of Covid-19

On March 11, the new Mexican National Financial Inclusion Policy (PNIF) was published, which defines “financial health” as the state of people to be able to: 1) manage their finances properly , allowing them to face their daily expenses (daily financial management); 2) face negative variations in your income streams and disproportionate or unexpected increases in your expenses (be resilient); 3) achieve your economic-financial goals (security in the financial future); and 4) take advantage of opportunities to achieve their well-being and economic mobility (financial control).

Before Covid-19, and according to the PNIF, it is observed that the financial health of Mexicans was “precarious”, since, for example, 58% could cover their expenses with current income (daily finances); 43% could face an economic emergency with their savings (resilience); 40% always set long-term economic goals and worked to achieve them (financial future); and 34.8% kept a budget or record of their income and expenses (financial control).

Nowadays, it is not only necessary to take care of physical health, but also financial health, mainly because it is exposed to negative variations in income that can generate problems to pay some fixed or daily expenses (in April, between 9.1 and 14.9 million Mexicans suspended the perception of their income from the quarantine, according to the National Survey of Occupation and Employment ENOE-Inegi); neglecting the financial future due to over-indebtedness or the excessive use of retirement savings funds (as of June, there have been partial withdrawals for unemployment equivalent to 8.6 million pesos, an increase of 60% compared to last year).

If unfortunately you have problems with income, some tips that could help are:

1. Cut unnecessary expenses and reduce the use of electricity, gas, water, television or telephone.
2. Review calls for support from the federal, state and municipal / mayor’s government, and from local labor ministries.
3. Sell ​​items or pawn them.
4. Carry out jobs (transporting people, caring for the elderly or the sick, teaching classes, car washing, walking dogs, being freelance, among others).
5. Rent a room or parking space (check tax requirements).
6. Starting a business, or if you already had to use electronic means to offer products.
7. Make partial withdrawals from the afore (considering making larger contributions, when income stabilizes)
8. Ask for loans or make use of credits (as long as you have a payment plan).
9. If you have problems, or the expectation of having them, with the payment of services or debts, you must have direct communication with the companies (in general they have support schemes).

It is known by all that it is not the time to give up, that the situation you are facing is a complicated stage and that as a society it must be overcome, therefore, you must make an effort to have adequate financial health and, if possible, help others with what is within reach.