2 Things To Do with Your Money During the Covid Crisis
I’m gonna keep this short and sweet. Mostly because when there’s a crisis, only a few things become Very clear!
In addition, I’ll be hosting a Live Zoom Q&A with local Certified Financial Coach David LaBahn this Friday at 1pm ! Click here and you can ask and listen to questions! Meeting ID 466-356-199
Q: What’s the One Thing I can do right now that would make things financially easier or not necessary these next several months?
1) Take Care of Your 4 WALLS:
We need to be secure and grounded in uncertain times and that’s what walls provide, according to DaveRamsey.com
Do you have the cash for these 4 budget items before you pay for anything else?
4. TRANSPORTATION (Car payment, Gas, Insurance, DMV)
IF you answered “Yes”, take a deep breath and exhale gratitude 🙂
You’ve got your 4 walls set. Now you’re ready for the next priority….
2) SAVE, SAVE, SAVE UP:
The pandemic has impacted most of our economy, and there’s no way of knowing how it will affect the rest of this year and your income. During a global/national crisis, a wise person stockpiles cash, not toilet paper!
Typical financial emergencies are job loss, medical care, major repairs, accidents, rent increases… and now we have COVID-19.
Do you have at least $1,000 saved TODAY for a financial emergency?
IF you answered “No”, start paying minimum payments on your debts and save/earn that $1,000 as fast as you can. That’s your short-term goal for the next 4-6 weeks.
Do you have at least 3 months of your monthly expenses in an Emergency savings fund?
IF you answered “No”, buckle down and start stashing cash in a savings account until you reach this long-term goal. You can pay extra on credit card debt or car loans to reach it faster, but wait till this crisis has passed or if you have secure employment.
So start sending cash into a separate savings account only for emergencies (ie. job loss, rent increase, medical event, major repair, accident).
The $1k and 3 months of emergency savings is your safety net when life’s big surprises show up every 12-18 months.
National surveys indicate that low-income to middle-income Americans can’t afford a $400.00 – $5,000 financial emergency without going into debt. You want to come out of this economic crisis financially stronger than when we all got into it.
These two suggestions are keys to financial peace:
1) Prioritize the 4 Walls of your monthly budget.
2) Save at least 3 months of your expenses for emergencies.
When this crisis is past, keep your emergency fund because you now have protection for any future crises- that’s wisdom worth more than any paycheck!
Got more questions about loans, budgets, retirement, savings? Send your questions to firstname.lastname@example.org and I’ll have a response OR we’ll answer them on the Friday 1pm Zoom call!