Almost all the countries in the world had coronavirus cases during 20-21. Governments continue to struggle with new lockdown regimes to stop the spread of the COVID-19. The virus had a negative impact not only on each country’s economy, but the global economic outlook has also quivered in recent months.
Thus, to maintain financial stability, let’s discuss some practical do’s and don’ts and have a sense of peace in our minds.
- Do accumulate an emergency fund setting aside each additional penny that you get. It is highly recommended to keep a nest egg in a stamped closed bottle or can and keep it as long as you can. The idea that you have an emergency fund will allow you to sleep better at night, giving you emotional certainty.
- Do set up an automatic online bill payment to save money and time. This will help you avoid late fees and extra charges and, of course, in-person payment.
- Do take loan repayment holidays. In March 2020, Financial Industry Regulatory Authority (FINRA) authorized banks, credit unions, and lenders to grant a repayment holiday to mortgage borrowers financially affected by the pandemic for up to a maximum of six months.
- Do take caution while using financial mobile apps. Scammers use mobile payment services to trick people into sending money.
- Do control your spending habits. Prioritize essential bills like rent, insurance, electricity, etc. Cut down non-essential expenses and spend only on basic needs.
- Don’t buy too much. The pandemic impacted the shopping habits of millions of consumers, and stocking up seems to be a common reaction throughout the COVID-19. However, the United States Food and Drug Administration recommends shoppers keep a 1-2-week timeline to prevent supply shortages.
- Don’t touch your stock during COVID-19. That’s true; stock markets crashed recently, while history tells that markets have always recovered over time. If you sell your stocks now, you will not have the opportunity to participate in the market recovery. Selling your capital stocks may bring significant capital loss.
- Don’t take on high-cost debts. These problematic debts refer to credit card debts that can appear attractive because of their get-at-able obtaining process. But be sure, you will pay a high price for the initial convenience.
- Don’t avoid help. If you have an inability to meet financial obligations, find out how to get financial assistance from the government by visiting the website of Disaster Financial Assistance. Seek advice from a financial counselor through National Debt Helpline.
- Don’t ignore your stimulus checks. We all may have accumulated costs to cover during the pandemic, including rent, utilities, and credit card payments. Stimulus checks are suitable to cover such urgent bills during crises. The US government provides stimulus checks to the consumers to stimulate the economy. Between March 2020 and March 2021, 3 rounds of stimulus payments were provided to alleviate hardships caused by the COVID-19.
The COVID-19 pandemic will leave deep scars on the whole world. Exchanging new financial ideas may be helpful to avoid financial missteps. The aforementioned money do’s and don’ts may guide people on how not to make money-related mistakes and get through the COVID-19 crisis.