The Coronavirus has been a part of history that people will not soon forget. The largest impact has been the closing down of certain businesses with people losing their livelihoods. The number of people infected seems to vary depending on the news source while the information disbursed is anything but consistent. For those that are lucky enough to stay employed and work remotely at this time, it is important to manage your money in an efficient manner. There are companies that have survived but might not survive much longer in areas of the country vowing to stay closed until July. Below are a few tips to manage your money during this pandemic.
Create a Financial Emergency Fund
Emergency funds need to be set up as there is very little in terms of insurance for people that have recently been let go. In some states like Florida, there have been massive issues with the unemployment system with it failing and many people waiting months for their first check. The last thing that you want is your mortgage company to start the foreclosure process simply due to the lack of an emergency fund. Save money monthly and sell things online to build this fund as there are likely plenty of pieces of technology (old smartphones) in the home that can easily be sold.
Keep Your Money in the Stock Market (Only If You Have Incurred Small Losses)
People that have their money invested in the stock market might have seen immense losses if invested in certain companies. Pulling your money out before the market has recovered can lead to massive financial losses. For investors that have stocks like Shopify or Amazon, this is the time to hold onto these stocks. Getting liquid cash during this time can be immensely important especially if you are considering an investment property. There are plenty of properties going up for sale at immense discounts as a person would rather sell their home than let the bank take it. There have been a plethora of companies that have been destroyed by the Coronavirus but are still operating. This could be the time to invest in these companies so you can profit in a huge way while they recover.
Support Local Businesses but Do Not Splurge
Supporting local businesses during this time is important. Rather than order a pizza from a huge corporation you can opt for a local establishment as corporations will endure the pandemic. The one fact to stress is not to splurge on these local businesses as many could have driven prices up to cover the losses they have incurred. Local businesses will be the lifeblood of the local community so spend your money with these businesses rather than those like Ruth Chris that applied for the PPP for small businesses. A company that had nearly a billion dollars in revenue doing this is nothing short of a travesty.
Use Excess Cash to Improve Your Home
The average person is spending far more time at home than ever before. The home improvements that you need to make might never be more aware than now with the extra hours spent at home. Shower or bathtub refinishing can make the entire bathroom look like it has undergone a major renovation. The additional bonus is that this will cost far less than gutting and replacing an entire bathroom that includes counters, the bathtub, the sink, and flooring. Other improvements should also be considered but only if they save you money as a homeowner like energy-efficient windows or improve the resale value of the home like replacing carpet with tile.
Manage your money well now and you could potentially earn big later. Do not let panic dictate any of your financial choices during this unprecedented time.