Six Gradual Steps to Bridge the Gap Between Your Expenses and Income
A survey conducted and published at the end of July by the Central Bureau of Statistics on civil resilience during the COVID-19 crisis shows that more than half (55%) of Israelis fear they will not be able to cover their monthly expenses.
For 41% of the population, the economic situation has worsened, and 21% of respondents reported that they or a member of their household had reduced the amount of food they consumed in the past week. This marks a significant increase compared to the previous survey.
At first, we believed this would be a short-term crisis that would pass quickly, leading some of us to “sit on the fence” and avoid making fundamental changes. However, as time passes, uncertainty grows, and the end remains unclear.
Paamonim’s Recommendations for Wise Economic Conduct During a Crisis
Situation Assessment
Evaluate your total income and expenses during the crisis period. If you find a negative gap between your expenses and income, identify ways to bridge the gap gradually.
Gradual Courses of Action
- Reducing Expenses.
- Increasing Income – by finding additional income sources, even if temporary or small.
These are two essential steps every household should take, even if they are not currently experiencing cash flow difficulties.
If these steps are not sufficient, consider using:
- Emergency Savings – such as liquid savings in the banking system and provident funds under NIS 8,000.
Didn’t we save for a rainy day? Not ideal, but let’s remember for the future that crises can happen anytime and move on to the next solution. - Educated Use of Study Funds – in accordance with the monthly cash flow gap.
- Taking a Loan – or using bridging credit from trusted sources.
- Realizing Assets – as a last resort, only if no other options remain.
It is advisable to take these steps with the guidance of a financial expert.
We invite you to contact us for free financial guidance and advice.
For more details, visit the Paamonim website: www.paamonim.org
or call 03-9127150.
