Enjoy this guest post from David of NeighborhoodWeek.org! A quick Google search tells me that places like Auckland and Yunnan Province (in China) are still experiencing lockdowns for COVID. So, unfortunately, this advice is still timely.
Take it away, David:
Practical Financial Management Tips
to Survive the Pandemic
No one needs to tell you that we’re living in uncertain times. Along with the health implications of the COVID-19 pandemic, countless Americans are experiencing changes in their income. While each family’s situation is unique, you can take some general steps to help you make it through the pandemic on a solid financial footing.
The Froogal Stoodent shares some tips to consider for your situation.
Work With a Professional
While it requires an upfront investment, hiring a financial professional to help you navigate these times can pay off in the long run, especially if you feel overwhelmed by your circumstances. One option is to hire an accountant who can help with a wide range of issues, including personal financial planning, estate planning, retirement planning, and more.
Another option is to hire a financial advisor. The right advisor will help you gain control of your finances by teaching you how to develop a workable budget, save money, and eliminate debt.
Save as Much as Possible
Having emergency savings built up has never been more critical. You never know what the future brings, and consistently saving money for the unexpected can provide extra security for yourself and your loved ones.
Building an emergency fund may not take as long as you think. Automatically transfer a portion of each paycheck to your savings account. Contribute any savings you’re experiencing from the pandemic (e.g., dining out, fuel costs, salon costs, etc.). And add your tax refund to the fund. Before long, you’ll have a decent emergency fund you can fall back on if necessary.
Make Cuts in Your Budget
Budgeting is the key to financial health, and you may need to adapt your habits during the pandemic. Use this time to reevaluate your needs and reduce what you spend on non-essential purchases. Do you really need that magazine or cable subscription? There are plenty of cost-effective alternatives, such as online periodicals and streaming services. Are you using that gym membership? Look online for free workout videos that you can do from home.
Find Remote Work
You can find a plethora of remote work opportunities to earn some extra cash on online job platforms where clients are able to vet candidates based on rate, experience, and reviews. As you build your freelance career, you may consider working remotely full-time. If you’re taking this route, explore setting up a limited liability company for your business. This entity can simplify your paperwork come tax season, and you can shield your assets in the event you get sued. For easy LLC in OH, you can work with an online formation service.
Don’t Make Rash Decisions
Finally, avoid making decisions out of panic. While it may be tempting, pulling out money from your 401(k) or other retirement funds isn’t the best way to get out of a difficult financial situation. First, try the other methods listed above so that you can maximize your long-term investments.
There’s no sugarcoating it: this is a hard time for many Americans. If you’re struggling financially, think of how you can make it through while keeping long-term goals in mind. Consider hiring a professional, save money, cut expenses, and avoid making decisions that could cost you in the long run.
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