Recently we have seen many areas of the United States are beginning to open up and there seems to be a glimmer of hope that this pandemic will begin to let up at some point.
We are all hopeful that soon we can resume life as usual, but the effects this crisis has had on the finances of millions of people may still linger on well after we may be in the clear from being affected health-wise from the virus.
Since much of the country is still on lock down, many have continued to practice their best defenses against the virus for their health. But there may also be a few steps you can take to play defense against this pandemic for your finances as well.
Let’s take a look at a few steps you could take if the coronavirus has been affecting your finances:
GET OUT AHEAD OF ANY LENDER/CREDITOR ISSUES
If you owe to any lenders, creditors, banks, etc. don’t hide from those issues or put them off. Many creditors and lenders have policies in place to offer some leniency and help during this time.
By working with your lenders you are more likely to remain in good standing and feel more at ease when going through your budget and finances. This pandemic has affected millions of people. You are not alone and there are many who want to help. However, they can’t help if you don’t work with them to solve those issues.
You don’t want to come out of this crisis with more debt, bad standing, and a poor credit score when there are many options to help prevent those negative impacts. Reach out and do your best to be up front and honest so you can remain in good standing with all the lenders you do business with. You want to come out of this on top!
STUDENT LOANS
This one is very similar to the section above. Did you know currently federal student loans have halted all student loan interest until September 30, 2020? Make sure you get with your student loan lender if you are having trouble making payments.
If you are able to continue your student loan payments, now may be the perfect time to get a bit ahead while there is no interest accruing on your account! This is a great opportunity to get ahead with those loans and knock out as much as you can!
LOOK FOR MORE WAYS TO MAKE SIDE MONEY
Although many businesses are struggling right now, there are many who have moved the majority of their business online and are looking for those who can work from home for customer service, virtual assistants, bookkeeping, and more!
Checking out some platforms where you could make extra money. You may have a lot of experience in a particular field and could offer a class, you could find data entry, bookkeeping, and virtual assistant jobs on freelancer sites such as Upwork.
Whatever your talent, there are likely many more companies out there than before who are looking for people who can work remotely to comply with social distancing regulations and therefore you can use your skills to your benefit from the comfort of your own home!
SAVINGS
As we see most interest rates falling during this crisis, it may seem like your savings aren’t moving in the direction you intended. Although your principal balance will stay the same, the interest accrued is not at the level it was when you first began your savings.
You could wait it out and hope that things will go back to normal with our economy, or you may consider a fixed interest rate option. No Penalty CDs may be a good option if you are concerned about those falling interest rates. With a CD you can count on a fixed interest rate that will not waiver. In addition, No Penalty CDs will not penalize you for withdrawing early if you need to access the money sooner than expected.
While these are just a few options if the coronavirus is affecting your finances or your fear that it will soon, we have covered a few other options to consider in previous articles.
We have covered 5 Ways to Manage Your Finances During the Coronavirus Pandemic, as well as 5 Ways You Should Consider Investing Your Economic Impact Payment.
If you are looking for more help or ideas to help your finances during this time, don’t hesitate to give me a shout. You can email me at dave@daviddenniston.com.
Let’s have a chat and find a way to get you through this pandemic with your finances in a good place!
Material discussed is meant to provide general information and it is not to be construed as specific investment, tax, or legal advice. Individual needs vary & require consideration of your unique objectives & financial situation. Please consult with your accountant or tax advisor for specific guidance.