During these uneasy times, many people are understandably concerned about the future of their finances. Whether they have investments in the stock market, credit card debt, equity, student loans, or any other financial interest, it’s a strange time to think about what the future may hold. There are some tips that can help make this period a slightly less stressful time.
Short-term advice is to pay attention to your financial provider notifications. Do not ignore any emails or messages from them. In addition, it’s important to get ahead of any problems you might foresee by contacting lenders and creditors ahead of time before they have a chance to contact you. This will grant you favorable choices if/when you need to consolidate any debt.
It is entirely possible that a recession is around the corner. The expression to hope for the best but prepare for the worst is valid at times like these. Find out the locations of local food banks in your area, just in case you need them in the future. In addition to planning food supply needs, it’s vitally important to avoid panic buying supplies. This just adds to the overall chaos and can make things worse for everyone. Instead, take stock of non-perishable items that you can keep in your pantry, as well as a reasonable amount of hygiene and cleaning supplies.
In the long-term, there are also ways to secure your future finances and make them more stable as well. Cut down on any unnecessary expenses. This includes any new credit card debt or large purchases such as a house, car, or boat. The idea is to have as much of your cash flow as free as possible to puff up your savings. If there are any extraneous expenses you normally pay for, cut them off so you can have a tighter budget for only the necessary items. Take the time instead to pay off any credit card debt, which is what will truly help in the long run.
Set aside any extra savings for an emergency fund. This is different from a rainy day fund, which usually averages around $2,500. An emergency fund tends meant to support 9 months of living expenses, or around $10,000.
Most of all, avoid any type of financial scam. If something sounds too good to be true, it most likely is. Typical scams involve fake government stimulus checks or bank fraud.
This blog/website is only made available for educational purposes. It is designed to give visitors general information and a general understanding of select financial topics. It is not intended to provide specific financial or investment advice. Conduct your own due diligence or consult a licensed financial advisor/broker before making any and all financial/investment decisions.