The Coronavirus took our world by surprise — putting millions of people out of work, and causing financial challenges for many families around the globe. With that, it’s important to address these situations at hand, and do our best to work through the difficult parts of living through these current times. Regarding financial wellness, there are plenty of things we can do to live a better life after the Coronavirus. Follow these tips to set yourself up for better financial health in the future.
Be Smart With Your Emergency Savings Account
Emergency funds allow you to set aside money for those “just in case” moments. They can play a really important role in your savings and create less financial stress for when surprising instances occur within your budget. For those who haven’t set up an emergency fund, it’s never too late to start. If you created an emergency fund before the virus occurred, that is a great position to be in, and there are ways you can stretch this account as slowly as possible among the uncertainty. Take a dive into your essential expenses, craft a well thought out budget and promise yourself to spend less on things that aren’t necessary to purchase. Doing this is fairly simple! Have a small amount of your paycheck deposited into your emergency savings account each pay period. Saving as little as $20 each pay period will give you $520 at the end of the year, if you are paid on a biweekly basis.
Reassess Your Budgeting Strategy
One of the main things in your financial portfolio that you can frequently adjust is your budget. Budgeting involves analyzing all of the expenses and income that you have and determining a way to manage it. Since many Americans were out of work due to social distancing and other health and safety precautions, it is important to remember that you may have deferred some of your payments until things returned to normal. Continuously updating your budget can help you stay on track and contribute to greater financial health in the long run. Make sure to stay organized with your budget, one of the easiest ways to do this is by creating a list of your bill by their due dates. If your expenses don’t line up right with your income, look for a financial solution that lets you have early access to your paycheck. Not only can this help you get your money faster, but doing so can limit late payments or paying bills with credit as well. Always look into the services that your financial institution providers and take advantage of those that can help your budget best.
Pay Off and Keep Debt to a Minimum
Many individuals have their own strategies about how they tackle debt. During and after a pandemic is a time where we should be looking into how we can improve a debt plan and prioritizing this potential financial burden even more. Many Americans have had to resort to taking out personal loans and credit lines to keep themselves afloat, which leads to carrying a little debt for the next few years. However, it’s imperative to limit and repay your debts in a timely manner to avoid costing yourself more in interest in the long run. The snowball method is known to be one of the best ways to pay off debt. It involves starting off with your smallest loans first and then working your way towards the largest ones while taking the interest rate out of the picture.
The Coronavirus changed many aspects of our lives, and has affected our economy and unemployment rates. With these tips, we can come out better than before and be well prepared for a financial emergency.
Thank you,
Glenda, Charlie and David Cates
