COVID-19 Challenges Us To Rethink Our Finances

Were you prepared? Were you in crisis? Let 2020 be your teacher. 

In January 2020, most of us weren’t thinking about the global pandemic that would shake our economy and disrupt the seeming financial harmony of many households. 

Faced with historic unemployment, many families and maybe yours, stared at a loss of income. While GEA was deemed essential and no one was laid off, you probably know of loved ones – maybe even a spouse or partner – who was furloughed, laid off or forced into part-time. How did that impact their financial wellbeing? If you haven’t yet, let COVID-19 force you to better prepare for emergencies. 

1. Reassess your current financial situation. Do you feel like your income isn’t very stable? Then you might need to stick with the basics – that’s food, utilities, shelter and transportation — at least until you can get your income situation sorted out. But if you feel like you’re in a secure situation, it might be time to start attacking your financial goals again — whether that’s getting out of debt or saving for a down payment on a house.

2. Revisit your monthly budget. Maybe this quarantine has helped you realize that some things shouldn’t go back to normal. Maybe all those banana bread recipes you baked during the quarantine have inspired you to avoid eating out as much as you did before. And those free workout videos on YouTube and walks around the neighborhood helped you feel the burn without the gym membership burning a hole in your budget. You have a chance to pick and choose what comes back into your monthly budget and what stays out — don’t waste it!  

3. Keep a lot of cash on hand (just in case). If there’s one thing the pandemic has taught us, it’s that we need to be prepared for whatever life throws our way. If possible, it still might be wise to have a little extra cash in your emergency fund for the rest of the year — just in case. Having a large pile of money in the bank gives you flexibility to stay calm and turn almost any emergency into an inconvenience.

If you’d like more advice on improving your financial wellbeing, visit Financial Finesse. 

Adapted from: https://www.daveramsey.com/blog/getting-finances-back-on-track-after-quarantine