5 steps recommended for smart financial decision-making

In the context of an uncertain situation of the Covid -19 pandemic which impacts to global socio-economies, Vietnam has gradually controlled and entered a "New normal" state, focus on economic recovery and development, but remain its efforts in pandemic prevention and control. Over the past year, many people raise the same question that How can I manage my financial plan appropriately under an uncertain situation like this?

While everyone’s situation is different, it would be almost impossible to come up with one formula for decision making related to financial spending, borrowing and investing. However, to move forward with step by step recovery and growth, those 5 key steps can strongly support you in financial decision making as follows.

1. Don’t panic

We are all worried whenever new cases confirmed Covid-19 positive. Insecurity confuses us every time we make a decision and it obviously won't get us anywhere. Our ability to think and navigate the future effects of our financial decisions can become clouded by panic. A high risk investment decision or a full withdrawal of your bank account during these times of uncertainty won't be possibly a smart move.

While times are unsettled right now, and you may feel like you’ve got to do ‘something,’ it’s wise to take a breath, review all your financial options, and consider how any action you take today may affect your long-term goals and priorities.

2. Look closely at your budget

If money is tight right now, see if you can find areas within your budget that can be adjusted to give you some breathing room. Reduce unnecessary expenses, but reasonable expenses can be considered. If the spending can be broken down and paid off with the right plan, then that is not a taboo at this time.

3. Understand your cost of borrowing

If you have to rely on a loan to finance your living needs and lifestyles, and you found it unable to make payment on time, you may to pay extra for the interest on late payments, which is supposed to be an unexpected expense that is not worth the wait. You need to constantly check sources of income and mark the monthly due dates. Based on that, arrange the full amounts into separate budget for each loan.

If you see there is a risk of a decrease in your income, take advantage of the funds to pay off some high-interest loans.

If your monthly income is secure, and you have urgent consumption needs, consider convenient personal loan options at reasonable interest rates.

4. Maintain a stable source of income

Are you tempted to cash in some of your investment funds or bonds in order to infuse some money into your bank account? While using an emergency fund right now may be a great idea (it’s what it’s there for, right?) using funds earmarked for your future may not be the best move - Because both have the potential to decrease your potential earnings over time. In addition, the fee collected when cashing out hedge funds can become an "unexpected" spend on your financial management schedule.

5. Learn to leverage smart financial solutions for living needs

Personal loans differ from mortgage loans and auto loans because you receive the money into your personal bank account and can use the funds to cover a myriad of expenses, from home furnishing to buying a motorbike , paying for medical services, or home repairs.

If you just have a need to buy one essential item or get an essential service, then a personal loan is not a bad idea. Dealerships always cooperate with finance companies, banks, to stimulate demand with many promotions as well as support very good interest rates. This is also one of the stimulation activities to boost up economic recovery and future growth. If you’re considering a personal loan, now may be a good time to move forward so you can take advantage of low rates and promotions. In addition, the repayment plan with a reasonable EMI and flexible schedule is also an advantage of this financial solution. Get started on the application process today.

Pros of a personal loan at Shinhan Finance

• Maximum of VND 300 million

• Quick disbursement within 48 hours after approval

• Rates as low as 18%/year

• Flexible tenure up to 48 months

Shinhan Finance provide personal financial solutions which help customers fulfill their dreams and improve life quality:

• Minimum monthly income of VND 4,0
• Cover by the business areas
• Good credit history

Finance your better tomorrow – Whether you want to make a major purchase or finance a healthy lifestyle. Now make it reality!