The ongoing COVID-19 crisis has left many people in financial distress but, even with the extreme economic fallout, you can still maintain your financial health. Sound personal money management strategies can even help you save money during the COVID outbreak, as Texas continues to open up.
It’s safe to assume money is going to get tighter, even if your IRS stimulus check has helped in the short term. These eight strategies can help you get through these tumultuous times.
- Manage Your Savings
Whether you’ve lost your job or are earning less income, find ways to stretch your savings. Reduce nonessential spending such as eating out or traveling. Also, consider putting as much money as you can into an emergency savings fund.
- Don’t Spend All of Your Stimulus Check
If your income has been reduced by a certain amount, use a portion of your stimulus payment to cover the difference for a couple of months. As a last resort, use it to make partial rent or mortgage payments. Contributing some of the money to savings can help too.
- Reduce Your Debt
With so much uncertainty, it makes sense to pay down as much debt as you can. Focus on high credit card balances or pay off the remaining balance on your car. Prioritize high-interest debt and consider any forbearance or payment deferral options.
- Prepare for the Worst
If you are at greater risk, apply for life insurance, review your health insurance policy, and, if you’re elderly and/or in poor health, name a healthcare proxy just in case. It helps to be careful yet prepared.
- Stop Unnecessary Spending
Especially stop subscriptions you’re not getting any services for. Amid the current restrictions, you may want to cancel gym memberships, travel plans, and other expenses that are yielding no benefits.
- Review Your Expenses
Set aside time with your partner to look at what you’re spending each month. With this in mind, review what’s available in your joint accounts, so you can determine if one can cover the other’s bills if they lose income.
- Invest
If you’ve maintained financial stability through the crisis, consider investing in a traditional or Roth IRA, open a brokerage or investment account, or set aside funds for your child’s college education.
- Watch Dropping Interest Rates
Interest rates remain low, so you may have the opportunity to borrow wisely and even refinance your mortgage or student loan. As the best online credit union for all types of borrowers, we have compiled a list of rates and terms that could be favorable for you.
With knowledge of how to budget and save money and be financially cautious, you can look for low-interest auto and mortgage loans, as well as credit cards with The People’s Federal Credit Union. Our credit union of Texas offers a range of products, services, tools, and resources. Continue browsing to learn more, or reach out to us at 806-359-8571.
