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 half (55%) of Israelis fear that they will not cover their monthly expenses.
Among 41% of the population, the economic situation worsened, and 21% of the respondents answered that they or a member of their household had reduced the amount of food they ate during the past week.
This is a significant increase compared to the previous wave.
At first we thought it was a short crisis that would pass quickly, so some of us chose to “sit on the fence” and not make any fundamental changes. But as time passes, uncertainty intensifies, and the end moves away.
Paamonim recommendations for wise economic conduct during a crisis:
Situation assessment
Check your total income and expenses as of the crisis period. If you find that there is a negative gap between expenses and income, look for ways to bridge the gap gradually.
Gradual courses of action
- Reduce expenses
- Increasing income by finding sources of income, even if temporary and small.
These are 2 trivial steps that every household should take, even if it does not experience cash flow difficulties. - If this is not enough, the use of emergency savings funds such as liquid savings in the banking system and provident funds smaller than NIS 8,000
Didn’t we save for a black day?! Not too bad. We will remember the following times that crises always exist and move on to the following solution: - Educated use of study funds in accordance with the monthly cash flow gap
- Taking a loan / using bridging credit from trusted sources.
Finally, and only if there is no choice left, - Realization of assets.
It is recommended to take the above steps accompanied by a financial expert.
We invite you to contact us for guidance and financial advice free of charge.
More details on the Paamonim www.paamonim.org website or by phone at 03-9127150
