1. Reevaluate your cash position
Now is the time to take a look at your savings and emergency funds. It’s typically suggested that you stash away 3-6 months’ worth of your monthly income. That takes time, however, so do everything you can to beef up your emergency fund right now. If your income is currently halted, cut back on your discretionary spending. You can also look into reducing your monthly payments. For example, see if you can request your landlord or mortgage holder to accept temporarily reduced payments. Worth a shot if you need the cash now!
2. Consider refinancing your loans
As of March 20th, the Federal Reserve lowered its interest rate range to 0 to 0.25 percent, which makes it possible for local banks and credit unions to provide more small loans. With lower interest rates, you may want to think about refinancing any loans you may have.
3. Diversify, diversify, diversify
When the markets are uncertain, it’s best not to put all your eggs in one basket. If you’re an investor, you’ll likely be in a much better position if you spread your investing capital across multiple strong companies and industries. Diversifying should also apply to your sources of income, if possible, as well. If you can pick up a side hustle or take on an extra client, go for it!
Image via @womenofpm
4. Don’t panic, think long term
It’s incredibly important not to make any rash decisions right now. Cautiously consider the consequences of every financial move you make. You may feel inclined to pull all of your investments, or cash all of your bonds. Whatever your case may be, assess your situation carefully. The US economy has bounced back from many external shocks in the past, and it will do the same here.
5. Invest in yourself
There’s never been a better time to refine your resume, clean up your portfolio, start a free course on Coursera, check in with your network, etc. You probably have some extra downtime at home, so may as well use it to bolster your professional standing!
How are you taking control of your finances during this uncertain economic time? We’ll share your wisdom with the rest of our community – just comment below!
Stay safe and healthy everyone 💖 🧼