But for those who have lost their jobs or have had their income significantly reduced, it’s a bit more compelling. They may be anxious or frustrated with the unemployment benefits application process and stressed about whether the funds will be enough for them, he said. And if anyone hasn’t had an emergency fund or budgeting system in place before, Viktorin says that will definitely be the focus now.
Plus, the general uncertainty about when all of this will end makes it difficult to plan for the future or even know what is feasible. That’s why I said that recent conversations are a little different than usual. “Some people may become so emotionally obsessed with what this means that they don’t know what to do or not to do.” Planners. “You are in the eye of the storm,” she often tells clients.
In general, here’s how experts recommend approaching your finances now.
It’s difficult to give financial advice if you don’t have a complete picture of someone’s individual situation. So, if possible, it’s really best to discuss your concerns with your own financial advisor.
1. First, stop and think.
It’s easy to get overwhelmed and startled when you first start thinking about how the coronavirus pandemic will affect your financial security, or sudden events like having to deal with a job loss or medical crisis. That’s why it’s so important to sit down and take a deep breath before making any big decisions, says Viktorin. “Use this moment to pay attention to how you’re feeling and get back to your true goals,” she advises.
2. If you don’t already have one, make a long-term financial plan.
Once you’ve had some time to sit back and think about your goals, take a moment to reflect on your long-term plans or use this as an opportunity to plan for the first time. “Our client, at least he’s been working with a trainer for two months, has a plan they’re working on and sees the big picture,” he says. “They are exponentially calmer than those who don’t plan.”
But that definitely doesn’t mean it’s too late to start now. For example, you can start by thinking about the expenses you need, such as rent, food, utilities, or an emergency savings fund.
Then it might be typical things like sending kids to college, paying off debt, saving for vacations (remember traveling?) or retirement. You can start creating a budget system to track your , but remember that finding one that works for you can take time.
