Staying Financially Healthy During a Pandemic

Here are four ways to stay financially healthy when the pandemic is causing stress. Courtesy of Creative Commons.

Managing finances is one of the hardest parts about being an adult. We have car payments, student loans, mortgages and any other bill you can think of. It’s hard enough during regular times to keep on top of it, but even harder during a pandemic.

With the effects of business closures and stay-at-home orders on the economy and unemployment rate, it is even more important to stay financially healthy. Even though things are looking up, it’s still a challenge.

Here are four tips from extras to stay on top of your finances.

Create a Household Budget

Budgeting is a good skill to have no matter what stage you are in life. It’s wise to have a monthly spending plan with everything from rent to groceries and anything else in between.

A good way to start working on a budget is to consider what expenses are essential. This typically includes utilities, rent and food.

Then you continue your analysis by negating costs that you have, but don’t necessarily need. It could be your Netflix account or the three times a week you’re eating out. Figuring those out and cutting those costs are a huge help.

Establishing financial goals through these areas is a great starting point.

Continue Contributing to your Retirement Fund

While many jobs have put a pause on potential matches on retirement funds, that doesn’t mean you should just forget about it. The pandemic is temporary, your retirement will still come one day.

If you’re still employed continue investing a similar or slightly smaller amount of your income into your 401L or IRA every month.

If you’ve been furloughed or lost your job, don’t worry about this. Focus on other priorities and return to your retirement fund after.

Build Emergency Savings

It’s recommended to have about three-to-six months of living expenses saved at any time. This is even more important with all the uncertainties that a pandemic brings.

If you’re one of the more than 26 million Americans who have filed for unemployment since mid-March, it may be more difficult for you to add to your savings account.

Even if you can’t contribute a standard 20% of your paycheck into your savings each month, every little bit helps. It could come in handy if you end up losing your job.

Refinance a Loan

The Federal Reserve slashed interest rates to zero percent to help counteract the recent market volatility caused by the pandemic.

It’s be financially healthy to take advantage of those low rates on mortgages or student loans to save on some interest.