As the markets continue to be extra volatile, a lot of people have money on their minds. There's not much we can do about the state of the overall economy, but there are some small-scale things you can do right now, from the comfort of your own home, to help you feel more in control of your finances.
According to Rachel Cruz (daughter of Dave Ramsey) these are five super practical, super clear things you can do with your money during this pandemic:
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Don’t panic.
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Get on a budget.
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Focus on your Four Walls.
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Cut out all unnecessary expenses.
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If you’ve lost income, stockpile cash.
These are a great place to start. We found some additional ways you can take control of your finances now.
Start a Budget
If you haven’t started a budget by now, you should. A budget just means tracking your income and expenses regularly. You can do this each month or budget by paycheck, just use a method that works well for your brain.
Use a spreadsheet if you like to do things manually, but there are budgeting apps that can do the work for you.
Contribute to your Emergency Fund
If you want to eliminate financial stress, you need to have an emergency fund.
The size of your emergency fund will vary based on your monthly living expenses, but try to aim for at least three months of expenses. An emergency fund can reduce the burden of an unexpected event, like sudden job loss or a medical-related event.
Flagship Bank makes building that savings easier, thanks to competitive interest rates and ability to set up automatic transfers to reach your savings goals faster.
Set up Automatic Savings Contributions
Set up automatic savings contributions with your bank. As we mentioned, It’s a great way to get in the habit of saving without manually moving money.
Rework Vacation Plans
As much as you may be tempted to keep your vacation plans, it might be time to rework them. Your health and safety are more important than holing up in a near-empty hotel anyways.
Take a look at your calendar and figure out which plans you can rework. Many airlines and hotels are offering free cancellations or rescheduled plans.
Avoid Retail Therapy
Are you prone to scrolling through Amazon or your favorite retail site when you’re bored or stressed? This activity could put a wrench in your savings while in quarantine.
Find something else to occupy your time. Go on a walk, do a puzzle, binge a Netflix show.
Reduce Your Car Insurance Premium
No one likes to hassle with car insurance premiums, but now might just be the best time to see if you have a good rate. Make sure you aren’t taken advantage of by figuring out how much car insurance you really need. Compare rates by gathering multiple car insurance quotes.
Call up your current policy provider and ask them what other discounts they can provide. You might be surprised at what they can offer.
Invest in the Stock Market
As counterintuitive as this might sound, now is the time to scoop up some stock deals if you can. Right now, stock prices are falling dramatically which means you have a chance to buy stocks at a discount.
If you want some help investing in stocks and want a low-fee account (who wouldn’t, right now!), check out some of the online brokers we found.
So many things are different right now and it can feel overwhelming at times. These are just some ways you can take control and do some positive things to ensure you come out of this better than you started. You got this and we are always here for you Minnesota.
