First, if you have a job, then keep it. The next would be to start saving up as if you could be unemployed for an extended period. The next thing would be to shun debt like it is a disease. The essence of these rules would be to make sure that your own financial house is in order and is prepared to weather this storm.
Developing A Financial Plan
It is more important than ever to have a plan during this time. To put this in plain words, you need to understand where every dollar is at all times.
It is essential to put your budgeting skills to use. You need to understand where every dollar is at all times. You need to create an elaborate and more detailed budget than you maybe have in your entire life.
The first step would be to separate your direct and passive income. If you have a job, you need to have a detailed budget of where all of that money is going. This would include things as your mortgage, rent, electric bill and grocery spending, as well as how much you are putting into savings each month.
The next step would be to look at your passive income. This could be in stocks, bonds, and savings accounts.
If you have money in the stock market and it has lost money because of the coronavirus, you need to determine how much you can afford to lose right now and how much you could potentially make if the market were to come back strong. You need to weigh the positives and negatives of keeping your money in the stock market. You also need to consider the history of the stock market when weighing these facts. The market has, in the past, always come back strong from events like these.
If you have a savings account, you need to determine how much interest your money is making now since most interest rates have been cut down to 0%. Would it be worth your time to look for a bank that is providing a better interest rate on your savings account?
Once you make a financial plan and begin setting goals, you must stay committed to them. While uncertainties abound during coronavirus, it is still essential to stay committed to your financial goals unless a significant economic event happens in your life.
If you are looking to help secure your financial future with a financial planner
, we would advise you to contact us at 918-928-9573.