12 COVID-Proof Money Tips From Financial Planners
12 COVID-Proof Money Tips From Financial Planners
By Jaime Catmull February 22, 2021
Make sure your finances can withstand the pandemic.
The coronavirus pandemic has changed nearly every aspect of our financial lives. Many of us have lost jobs or work hours, seen our investments swing from highs to lows and changed the way we spend money, with many of our usual expenses (commuting, vacations, etc.) now off the table. With so much uncertainty still looming about how the pandemic will affect the economy going forward, it's important to make smart financial moves that can weather whatever is to come.
While some golden rules of money management still stand, other advice has changed due to all the uncertainty we've been facing in recent months. I spoke to financial planners to find out what tips they've been giving their clients to ride out the current crisis and be prepared for whatever the future may hold. Keep reading to check out this advice for yourself.
Focus On What You Can Control
"You can’t predict or control how the pandemic will impact the market," said Carrie Schwab-Pomerantz, CFP, board chair and president of the Charles Schwab Foundation. "But you can control how you manage your investments, your savings rate, having a financial plan and how you react to events."
Create a Budget To Maximize Your Resources
Creating and sticking to a budget is one financial tip that always applies; however, you may need to revisit yours to account for any changes in your lifestyle due to the pandemic.
"If you can, rethink your needs and wants, reprioritize your expenses and plan better for the future," Schwab-Pomerantz said. "Put what you don't spend on 'extras' toward the future — whether that's your emergency fund, retirement or education."
Keep Your Expenses Low
"Managing expenses during this time is very important," said Robert Conzo, CFP, CEO and managing director of The Wealth Alliance. "Job stability is a very big issue and can dramatically affect people’s lives. Living within one's means is always a good practice -- now is no exception and could potentially allow a family to reduce the negative impact of a job change."
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Build an Emergency Fund
"We don't know how things are going to unfold or how long all of this will last," said Justin Pritchard, CFP at Approach Financial. "It's smart to have a little extra cash on hand for these times."
With so much volatility in the job market and the stock market, it's important to be financially prepared for whatever crisis you may face.
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