During these turbulent times that the world is facing due to the global pandemic, caused by the Coronavirus aka COVID-19, millions of people are experiencing physical, mental, emotional, and financial uncertainties throughout their personal and business lives.
We are no longer afforded the luxuries of going on with our lives, doing business as usual. As the world faces uncharted territories under COVID 19, we must immediately change how we think about things, change how we look at things, change how we feel about things, and change how we live our lives.
From Main Street to Wall Street our global citizens are feeling the financial stress and strain of losing their business and household income. As this pandemic claims more lives, and renders others in need of specialized medical care, companies are laying off workers or going out of business. It doesn’t matter what country you live in or what currency you use, the pain is same.
We understand the future for many may seem bleak, even with the help of government and corporate assistance.
However, we strongly believe that Financially Speaking, the best improvement starts with self improvement. It is the responsibility of everyone to financially empower ourselves through professional (coaching) and self-education. And there are changes we can make during these times that will put us in a better financial position once our lives get back to normal. However, we can also strive to return to something better.
To get started, we want to share with you our seven tips/strategies we use with our clients that had a tremendous impact on improving their lives financially. We believe they can help reduce the mounting financial stress caused by COVID 19.
Change Your Spending Habits
– we no longer have the freedom to spend our precious cash on items that have no value. We often hear “I don’t have money to save.” Well, during these times, spend only on your needs (housing, food, medicine, etc.) and practice savingas much as you can.
Calculate Your Current Financial Position
– if you don’t know where you are standing right now, how can you determine the best direction to move forward? There are 2 calculations that can help determine the strength of your financial position. Their results can be positive or negative, but you will know where you stand and can make adjustments as needed to increase/strengthen your financial position:
- Net Worth=total value of all your assets (e.g. home, car)minus the total value of all your liabilities (e.g. mortgage, car payment, loans).
- Track Monthly Cashflow = total monthly income minus total monthly expenses. It is critical to know where your money comes from and where it is going.
Protect Your Credit
– there is a great deal of fear and uncertainty regarding losing your home to foreclosure, auto repossessions, and destroying your credit, etc. The good news is that some governments and creditors are making an effort to help during this crisis. But it is your responsibility to contact all your creditors to find out what programs they are offering(e.g. forbearance, rate reductions) and what are the rules.
Make New Money-Start A Business
– there are numerous businesses you can start from home. Business that can help others while providing you with additional revenue. During this crisis, delivery companies are still operating, you can still ship and receive items. We have several home-based businesses and can share ways you can increase your income.
Review Your Insurance Policies
– many people don’t like to talk about life insurance, but how will your family survive if you die? How many Go-Fund Me have you received to help pay medical bills or bury a friend or loved one? Now is the time (while you are healthy) to take insurance seriously and put policies in place that not only help your family if you die but can also help you all while you are living. Insurance has changed from just providing a “death” benefit to providing “living” benefits. Educate yourself on the options available.
Investments – Don’t Panic
– many people have experienced and recovered from market crashes in the past. We can’t tell you what to do with your investment accounts (e.g. IRA, 401K, etc.) because each person’s situation is different. We recommend contacting your investment provider to understand what options you have available to utilize and/or protect your investments. Some questions to consider asking:
- Can I withdraw funds without penalty?
- Can I get a loan or defer my payments?
- Should I buy, hold, or sell out?
Stay Safe, Stay Healthy, Stay Home
– not only does it save on fuel expenses that you can add toward your savings, it keeps you, your family and community safer from COVID-19.Use this time to create new/additional family financial habits that can be continued after your lives resume. And most importantly, follow the directives of the authorities.
Michael and Robbie Mathews
Financial Education and Empowerment Coaches at The Mathews Entrepreneur Group
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