The coronavirus has ushered in financial uncertainty that we have not seen since 2008. The unemployment rate is skyrocketing, hours are being reduced, and doing business as usual is simply not possible. We have entered unchartered territory very few still alive have ever experienced.
You may be stressed about your health and wellness. Stressed about your family’s safety. And stressed about your financial future. All of these stressors can be overwhelming, to say the least. If you are a homeowner, the stress is potentially greater, since losing your home at this moment would be downright devastating.
You may even be considering loan options, especially if you are a senior with a small retirement cash flow. “It is safe to say the new jumbo products will not be the solution for all borrowers, but it most definitely gives senior more options and the ability to choose whether or not they wish to capitalize on a program that looks at the full value of their home,” according to All Reverse Mortgage.
Loans aside, let’s look at how you can make money management amid the coronavirus financial uncertainty a priority.
1. Take A Second Look At Your Budget
Your budget has probably changed quite a bit since the start of the coronavirus pandemic. This makes it important to take a second look at your budget in order to identify the best places to spend your money. Spending that is unnecessary should be immediately cut. If you lost your job, or your hours have been cut, identify the areas to spend your money wisely. Here are some budgeting tips to consider.
2. Try To Keep Your Savings Account Intact
This may be challenging for those who have lost their jobs due to the coronavirus pandemic. However, if you can keep your savings account intact, you may be able to weather the coming storm. There is really no end in sight for the pandemic right now, so try to save your savings for when the going gets really tough. If you don’t have savings, which many Americans do not, look into low-interest personal loans to give you a buffer.
3. Think Twice Before Using Credit Cards
Breaking out your credit cards may be a reaction that makes sense. However, if your credit card interest rates are high, they may not be beneficial to use right now. Getting new credit cards with very low-interest rates, or even no interest for 12 months could be a better option. Do your due diligence before getting any credit card.
4. Become A Proactive Planner During Financial Uncertainty
If you are financially stressed, or simply stressed overall, it is important to know that you are not the only one experiencing financial uncertainty. The whole world is grappling with the economic issues the coronavirus has ushered in. This makes proactive planning a must-do.
Focus on creating an action plan for your finances, like taking on some online consulting to add cash flow. “A consultant’s job is to consult,” Entrepreneur explained. “Nothing more, nothing less. It’s that simple. There’s no magic formula or secret that makes one consultant more successful than another one.” LinkedIn is a very powerful tool right now.
5. Go To The Bank To Get Cold Hard Cash
More business closures means a potential shortage of cash. Not necessarily what is in your accounts, but actual green money. Having cash on hand is not a bad idea. You should head to the bank or ATM to withdraw some cash, but be sure to disinfect the cash when you get home.
6. Try To Consolidate Debt Where Possible
Consolidating debt could be a great idea amid coronavirus financial uncertainty. Why? You may be able to reduce interest rates on debt and thus reduce your monthly payments on bills like car loans, high-interest credit cards, and more. Debt relief programs and personal loans can work well for consolidating some debt.
7. Get Help When You Need It
Due to the mass financial uncertainty in the U.S., there are a lot of ways you can get help if needed. For starters, you should contact your lenders and ask if they have deferred payment plans, or if they can reduce payments altogether in order to keep you from falling behind on scheduled payments.
The government is said to be sending money to Americans soon, but don’t wait for that. It may be weeks before checks make it to mailboxes. The United Way may be able to help in these uncertain economic times as well.
Wrapping Up . . .
The coronavirus is leading us into financial uncertainty. There is also no light at the end of the tunnel quite yet. We will surely make it through this, but financially, many people may not be able to recover. The above money management tips may help. What are you doing to keep the financial strain to a minimum?
This content is sponsored by Sheldon White.