The Coronavirus continues to affect our lives and the economy. According to a survey conducted by COUNTRY Financial, 49% of those surveyed reported having a faltered sense of financial security since the pandemic began. But even in these uncertain times, there are still ways you can take control of your finances. Here are tips for how to find financial stability during this economic rollercoaster.
Focus on what you can control
You can’t control or predict when the economy will recover or how long that recovery might take. However, you can control your spending and saving habits.
Make a list of every purchase you made in the past month, including the basic necessities like the mortgage, rent or utility bill and the impulse buys like new shoes or take-out food. Look at your list and make cuts where you can. If you can afford it, determine a manageable amount you can put into savings each month too.
Create a budget
Since the pandemic started, more and more people have been forced to set spending boundaries and stick to a budget. Living within your means, or not spending more than you make, is a great financial habit to develop. If you need help creating a budget or tracking your spending, check out our free, online personal money management tool, My Financial Partner.
Create an emergency fund
Starting an emergency fund during the middle of an emergency may sound odd, but now more than ever people are seeing the importance of having money set aside for unexpected financial costs. Try to set aside as much as you can each month. It’s ideal to have enough in your emergency fund to cover three to six months of living expenses. Even if you just saved $4 a day, that would be $120 by the end of the month!
Don’t forget about long-term goals
Right now, it may seem difficult to think about saving for retirement or other long-term goals, when managing to pay everyday expenses is a struggle. But try not to lose sight of the big picture. Saving for retirement is just as important now as it was before the pandemic. You may need to make adjustments for the time being, but don’t stop working towards your long-term saving goals.
Sticking to a budget and trying to save a little will help you feel more in control of your financial situation. If you’d like more information, register for our free webinar: Financial Wellness During the Pandemic. You’ll learn more about how to keep your finances in working order and how to avoid COVID-related financial scams.