So before I get going the normal disclaimer. If you follow my blog you know I have been in the finance field for nearly 30 years (yikes!). Every finance tip I post here are my opinion, and should you chose to act on these tips you are 100% responsible for the outcome. That said, common sense and simplicity is always the best way to do financial planning. Trust your gut….
- Don’t look at your investments: If you have them, don’t look at them right now. The last thing you want to do is react to an extraordinary circumstance. This isn’t a normal environment and these types of events happen multiple times over a life investment cycle. As an example when I was starting my investments we had the first Iraq war and it disrupted the market. Making moves now when there are wide fluctuations in the economy is a bad idea. Hang tight, let the storm pass.
- Work on your personal economy with this time off: It’s likely you are home like the rest of us. This is a great time to set aside 15-30 min a week to focus on your finances. Here is what I do, Saturday morning from 10-11 I work on my personal finances. Pay bills, check balances, work on my budget, review my retirement planning. ONCE A WEEK. Please don’t tell me you don’t have the time, make it, even after all this passes. If you do this, consistently, over time you will have a complete grasp on your finances, you will be organized and it’s such a relief when you get to that point.
- Plan your comeback: When this pandemic passes, we are all going to have to get back out there in an economy that is a shell of what it was. Politics aside, it’s hard to argue that before the pandemic hit the economy was humming long REALLY well, the number don’t lie. Millions of people have lost their job, maybe you are one of them. You have to be ready to come out of this FAST. Update your resume, identify companies you want to work, keep In touch with your professional network.
In my lifetime I have seen several events like this that have had dramatic impacts on the economy. One of my first memories as a kid was sitting in a gas line with my father. You could only buy gas on certain days of the week, unemployment was high, inflation was through the roof. The market always bounced back and the economy always seems to fix itself. You should take some of this time you have to position yourself for the rebound. Remember this will pass, and before you know it will be 2021.
Whatever you do, take your time, use commonsense and always obtain as much information as you can before making financial decisions.