COVID-19 really sucks! The government shutdowns in response to the pandemic has been wreaking havoc on the economy and personal finances. Here are some ways that you can shore up your finances during all this craziness.
- Fund your emergency fund. Your grandmother told you to save for a rainy day. Well, it’s raining and she was right! I recommend saving a minimum of $1,000 in cash or in an account not linked to your checking account. If you don’t have a job, you should consider a yard sale, working part-time, or picking up side work until it can be funded. Ideally, you should build your emergency fund until it has 3-6 months of expenses in it.
- Stop using credit. Stop using your credit cards and other lines of credit—your future self will thank you! The problem with credit cards is that it only kicks the problem down the road and you have to pay it back with interest. Don’t believe the lie that you have to go into debt because you’re on your own—there are many charities, churches, and government agencies that are willing to help you with living essentials.
- Get healthy. Very few things can crater your finances faster than a medical emergency. Eating healthy (fruits, vegetables, grains, with little meat) with exercise is a proven way to prevent many diseases. This is one I struggle with, but it is important nonetheless—do what I say, not what I do! Ü
- Don’t jump off a financial cliff. During uncertain times, many people have a tendency to freak out and make terrible financial decisions that will haunt them for years to come. Before you do anything drastic, you should speak with an experienced financial adviser to make sure that you’re making sound decisions—a good adviser can talk you off the cliff!
I live here in Las Vegas which is one of the hardest-hit areas of the country due to our city’s reliance on tourism. If you live in Las Vegas and you’ve lost your job in 2020, I will give you a free no-obligation review of your finances and help you stay on the right path. Call my office at 702-228-0500 to set up a 15-minute appointment.