8 Steps to Weather the Financial Storm
Episode 30 is right in the middle of this pandemic and so we brought on Financial Coach, Kendall Berry to help us figure out how to weather the financial storm that we are facing. Remember this time is very stressful and to be gentle with yourself. There is no one right way to handle this emotionally.
Since we are in the middle of the storm here are 8 things we can be doing.
- Remain Calm – Ride things out and don’t make any rash decisions with investments or savings.
- Reduce Your Expenses – We are not going out and doing a lot. Expenses can still creep in by creating spending triggers. When we get frustrated, stressed, or bored this can push us to spend more. Cut back your expenses minus the 4 Walls: Housing, transportation, food and utilities. Make sure your 4 walls are covered and then make a list of the next most important things within your income.
- Increase Your Emergency Fund – We are in an emergency and you may be tapping into your emergency fund already. We also have the stimulus check, and tax returns coming. Cut back on expenses, because any extra money should be going to your emergency fund. The more in savings the more secure you will be. If you are getting money you don’t need, put it aside for your future.
- Stock Up on Essentials – Stocking up adds comfort to us and it is a security knowing we have enough. Put aside money in your budget to get the essentials you need because you might be sick, or might not be able to go to the store.
- Keep Cash on Hand – I normally don’t carry cash with me, but we don’t know what will happen. If something happens and you can’t get to the bank or cards stop working it is important to have cash on hand.
- Gather your important documents – This includes your passports, banking, and 401k information, wills, passwords, etc.
- Know Your Company Policy – This includes: sick time, vacation, working at home, health insurance, and know your company policies.
- Create an Emergency Action Plan With Your Family – This is your plan if an emergency happens. Make sure you are on the same page with everyone in your family even do to the finances.
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