Times are unsettling for millions of Americans facing
reduced hours, changing work functions, and uncertain financial days ahead.
With COVID-19 spreading, it’s more important than ever for you to take the
reins over your finances and manage them carefully to make your money work for
you despite the uncertainty all around. These key ideas can help.
Assess Your Current Financial Situation
The more facts you have at your disposal about your current
financial situation, the better position you are in to craft a plan that works
for you and your family moving forward.
If you are off work due to COVID-19, as many people are,
talk to your employer about pay. For instance, does your employer intend to pay
you, in some capacity, during this downtime? If so, how much? If not, will you
qualify for unemployment benefits?
In addition to learning about your compensation from your
employer, review your regular expenses, account balances, and upcoming bills
along with your current savings. Now may very well be the rainy day you’ve been
saving for. If you do not have a household budget, now is the time to create
one to work within the weeks and months ahead. Create and track your budget
using our free personal financial management tool My
Budget Manager inside Online/Mobile Banking.
Focus on Essential Expenses
Much of the uncertainty related to COVID-19 is the fact that
you don’t have all the information — no one does. No one knows how long the
outbreak will last, the impact it will have on the world, or what it will mean
for your workplace moving forward. During this time, it’s wise to focus your
spending on essentials only.
Begin this process by identifying which expenses are
essential, such as mortgage or rent, food, utilities, medical expenses, etc.
and which are non-essential expenses. Identifying non-essential expenses means
pinpointing areas where you can cut costs.
First, and most importantly, resist the temptation to shop
online out of boredom or depression. These activities can be destructive to
your budget. Second, begin looking for other ways to cut expenses. Subscription
services, which can add up quickly, are a great starting point. However, also
consider expenses you likely will not utilize soon, such as gym memberships,
amusement park annual passes, and other entertainment expenses.
There are areas where you can cut back on expenses even at
the grocery store – at least once the initial panic buying ends. For instance,
think of buying food in bulk or larger quantities to not only save money but to
save trips to the grocery store. Many libraries, schools, and other companies
are stepping up and offering free streaming services to keep young children
entertained during this trying time. Take advantage of available free services.
Contact Us – We’re Here to Help
With all the uncertainty related to COVID-19 and what it
means for the world’s economy, you may have anxiety on many fronts, including
your finances. We know we can’t fix the world’s economy, but we may be able to
help you better manage your finances during the weeks and months ahead.
Give us a call at 800-336-6309 to learn about the relief
services we’re offering that may help you weather the impacts of this financial
storm.
Each individual’s financial situation is unique and readers are encouraged to contact the credit union when seeking financial advice on the products and services discussed. This article is for educational purposes only.
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