Recovery & COVID-19: How to Restore Your Finances & Be Better Prepared for Future Crises
The COVID-19 pandemic sent shockwaves through the global healthcare system and wreaked havoc on international economies. The world went into a recession, many people found themselves out of work, and unemployment cases rose to an all-time high. But now that state governments are lifting their stay-at-home orders, businesses are re-opening and economic recovery is happening slowly, but surely.
While your local economy may be on the up-and-up, how can you make sure your finances are as well? Here are some tips on how you can restore your financial wellness after surviving quarantine and do better to prepare for any future crises:
- Keep investing your money. Thinking of selling your stocks because you’re short on income? Think again. The more you embrace long-term investing, the more financially secure you will become. Economies recover and those who invest need to hold tight in order to take advantage of the recovery period after a downfall. We suggest meeting with a financial advisor to help guide you through this period of unsteadiness.
- Use your stimulus check wisely. It’s always exciting to see unexpected money hit your bank account. And while you might have the urge to splurge, use your stimulus check wisely to pay off bills that are immediately due, or accruing debt on credit cards. Many companies are offering payment deferral programs during this time, so take advantage of any offers if you can!
- Cut any unnecessary expenses until you build up your funds. This one is somewhat easy to do right now as some businesses like gyms and country clubs may still be closed. Cutting unnecessary expenses can help rebuild your finances, especially if you were left unemployed during this time. Consider getting rid of any subscription services and other non-necessities and focus on eating in or taking advantage of staycations so that you save money.
- Consider refinancing or getting a second job. If you’re strapped for cash, refinancing your loans for lower monthly payments or picking up a second job are great ways to restore your funds. If you plan to stay in your home for at least five more years, refinancing your mortgage can help offset closing costs and can greatly reduce your interest rate. Getting a second job can help put money back into your savings, investment, or retirement accounts if you pulled funds from there during quarantine. You can also hold a yard sale or sell unused items on Craigslist or Facebook marketplace for some immediate cash.
- Start an emergency fund to be better prepared. While we all hope that we won’t see another pandemic in our lifetime, we can’t predict the future. So in order to be better financially prepared for what is yet to come, we advise starting an emergency fund that has three to six months’ worth of expenses in it. It is also wise to review your insurance coverage, especially life insurance, so that your family is protected. Continue to meet with your financial advisor as well so you can make sure you’re on track with your financial goals.
For more details on how Telhio Credit Union can help you navigate your financial journey, visit us at telhio.org.
This is a mutli-part sponsored series presented with paid support by Telhio Credit Union.
Telhio Credit Union is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield, Delaware, Licking, Madison, Pickaway, Union, Hamilton, Warren, Butler and Preble counties. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers 9 branching offices throughout Central and Southwestern Ohio and nearly 4,000 shared branching locations nationwide. Federally insured by NCUA. Equal Housing Lender. NMLS #251831