The first wave of COVID-19 left many feeling financially unprepared, which is completely understandable since none of us were ready to deal with the consequences it brought. However, with the thought of another wave coming, it’s essential to take steps now to prepare yourself financially for it.
Here are four tips to help you financially in the event a second wave of COVID-19 does happen.
1. Start an Emergency Fund
If you’re like many people, you saw a reduction in spending once businesses, like restaurants, bars, retail shops, and salons, were forced to shut down. This allowed some people to save a little more money each month.
If you’re finding you have extra money each month because you’re not spending as much as you used to, put it into an emergency fund. Your goal should be to have enough money in your emergency fund to cover three to six months’ worth of living expenses if needed. If you feel your job could be at risk, it’s best to aim for the six-month mark.
2. Take Advantage of Your Employee Benefits
COVID-19's first wave shaped how we work, and many employers wanted to support their employees during these challenging times. Therefore, talk with your employer about the possibility of creating an arrangement where you'll have more flexibility in your work.
For instance, if your child's school should shut down again and you're working at home, you'll then have to fit in taking care of your child. If your employer knows your situation ahead of time and offers you flexible work hours, it could help you balance your home and work life more efficiently.
3. Rewrite Your Budget
If you've been sticking with a regular budget, that’s great. Keep in mind, though, budgets aren't set in stone. You should periodically review your budget - once a month is ideal.
Now with the pandemic going on, reviewing your budget is much more important. It's crucial you determine which plans the coronavirus has disrupted and figure out how to budget the money you're no longer spending. You might want to use the money to pad your savings.
4. Contact Lenders & Vendors If You’re at Risk of Missing a Payment
The good news is financial institutions and vendors are still making it a priority to help those in need. But you need to contact them BEFORE your payment is due to make arrangements. This allows them more flexibility in their assistance options and also helps to protect your credit history.
We're Here to Help!
The uncertainty of the future can be stressful. However, the more prepared you are, the better off you’ll be. If you would like to explore additional savings tools, such as automatic transfers, please give us a call at 248-322-9800 extension 5.
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