Unpaid time off!? With the Coronavirus more people are worried about their finances versus getting the virus itself. A study by Prudential showed 45% are concerned about getting the virus. While 54% of Americans worry they aren’t financially prepared for quarantines with no pay.
Here’s five simple, but brilliant tips on how to financially handle the Coronavirus.
1. Go on a temporary spending freeze
Wait on making major purchases. Utilize the fact that you are staying home and make a game out of it. How little can you spend for the rest of the month?
Don’t make purchases unless they’re necessary like food, insurance, rent/mortgage, etc. Avoid online shopping from home except for the household essentials. Here are 19 brilliant ways to save money fast.
2. Cancel subscriptions you don’t use
This is the perfect time to go through your fixed expenses and subscriptions that you don’t use. Forget about ad-free online radio! Here’s a list by GoBankingRates of common subscriptions people waste money on and you can go without.
A lot of subscriptions don’t have contracts and you can cancel at any time. Once everything settles down with the Coronavirus, and you’re back to work and/or don’t have to pay for additional childcare, you can resume those subscriptions!
3. Stay the course with your retirement investments
Yes, the stock market is taking a hit right now. It’s a horrible feeling seeing the value of your retirement account drop. Historically the stock market earns 10% on average over the long run.
Here’s the markets earnings year-by-year according to Morningstar:
- 2008: -38%
- 2009: +23%
- 2010: +13%
- 2011: 0%
- 2012: +13%
- 2013: +30%
- 2014: +11%
- 2015: -1%
- 2016: +10%
- 2017: +20%
- 2018: -6%
- 2019: +29%
If you adjusted your retirement plan in 2008 and cashed out, you’d take the loss and miss out on the massive gains from the years following.
Investing is for the long haul. Famous investor Warren Buffett said, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
Here’s more on why I don’t care that stock prices went down.
4. Use time off to get your finances in order
Take a positive spin on how to financially handle the Coronavirus. If you’re staying home from work utilize the extra time to get your finances in order. Here’s four spring cleaning money tips.
Want to get out of debt? Tired of living paycheck to paycheck and stressing about money nonstop? Make a plan to avoid future stress by saving for an emergency fund.
Managing money is hard! With social distancing, we’re all learning how vital community is. You don’t need to figure this money stuff out alone.
Let’s conquer debt and build a secure financial future together.
I’m adding additional spots for 1-hour one on one money coaching online sessions. As a bonus you’ll get a mini-class on how to get focused and organized with your money + life. Get the details on how money coaching works here. Check out the remaining slots for money coaching sessions here.
5. Don’t live in fear
If you’re afraid you’re going to get the virus and worried about having to pay for extra expenses, refamiliarize yourself with your health insurance plan. This will ease your mind. Here’s more on exactly how health insurance plans work.
Franklin D. Roosevelt said, “The only thing we have to fear is fear itself- nameless, unreasoning, unjustified terror.”
To limit your fear, try fear-setting. It’s the opposite of goal setting, but a systematic approach designed by author Tim Ferris. The process helps you pinpoint what exactly you’re afraid of and what you can do to limit the negative outcomes. Learn more about fear-setting here.
Eliminate fear with education about viruses.
Personal finance blogger Mr. Money Mustache outlines the statistics on other viruses here. For example, according to the CDA over the last five months there’s an estimated 18,000 – 46,000 deaths from the flu.
That’s not to minimize that precautions do need to be made with a new virus. Counteract your fear by practicing prudence. In other words, react to the virus with sound reason, wisdom, and knowledge.
The CDA recommends to wash your hands, use hand sanitizer, and avoid touching your face.
If you’re stressed on how to financially handle the Coronavirus, use these five simple, but brilliant tips.
P.S. Are you going stir crazy at home? If you’ve been meaning to get your financial house in order, I’ve added extra slots for 1-hour money coaching sessions. Get the details here. I’d love to work together to help your reach your financial dreams.
If you have friends and family worried about how to financially handle the Coronavirus, then share this with them!