Coronavirus: Protect Your Finances And Your Future

“When we are no longer able to change a situation, we are challenged to change ourselves.” Viktor E. Frankl, Man’s Search For Meaning

Our values are tested during a crisis. We have learned that we need to make certain changes to our lives. As such, we have adapted our social relationships, our working lives, distance learningl to preserve our health and that of our communities.

7 Steps To Improve Your Finances

1. Emergency Fund Is A Necessity Building an emergency fund for unforeseen events is essential. The coronavirus is a black swan event of major magnitude. A black swan event by its very nature is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences.

2. Make Savings A Habit Yet we all have excuses as why we don’t need to set up an emergency fund account. You believe you have a stable job, your parents will help you out or you can always use your credit cards. You may not be able to fathom putting one month of savings, let alone the recommended one year of basic living expenses  in an emergency fund.

3. How To Pay Off Debt As a result of the coronavirus, there may be some help regarding different kinds of consumer debt. Recently, government actions have added some flexibilities for temporary forbearance or payments of student loans, mortgage loans, personal loans, car loans, or possibly credit cards.

4. Stay Vigilant And Check Your Credit Reports With every crisis, financial scams increase. Phishing and investment scams rose during the 2008 financial crisis and coronavirus outbreak is no exception.  Scams like phishing involve the sending of emails and texts purporting to be from reputable companies.

5. Continue Your Retirement Contributions Or 529 Savings Plan If you lost your job or are on furlough, you may not be able to make the same contributions to your 401K,  Roth IRAs or 529 Savings Plan. If you are able, continue to do so without interpretation even if in smaller amounts during this time.

6. Investing During A Down Market Does an economic downturn mean you should sell stocks? Not necessarily if you have a long term strategy. Financial markets go through corrections, bull and bear markets. Selling during economic downturns will provide actual rather than unrealized losses.

7. Practice Gratitude More…It Helps Our Spirits And Our FinancesBe thankful for what you have; you’ll end up having more. If you concentrate on what you don’t have, you will never, ever have enough.” Oprah

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