Am I Financially Healthy? Intentional Money Management During the Coronavirus Crisis
Another week is behind us and novel coronavirus (COVID-19) continues to have a profound effect on all of our lives. Unfortunately, the United States now leads the world in confirmed coronavirus cases, and more and more states, cities, and counties are asking residents to stay home. While social distancing may slow the spread of the virus, the economic impact of asking everyone to hit the metaphorical pause button on both travel and local movement is having devastating effects on companies and individuals worldwide. While the biggest economic stimulus package in American history may help in the short-term, we must personally take steps to ensure our families’ wellbeing. Obviously health and wellness is our primary concern, but if there was ever a time to be thoughtful and intentional regarding our finances, this is it!
Don’t worry if money management isn’t a strength (candidly it isn’t one of mine); thankfully, there are simple ways to apply basic principles of goal-based living to your family’s finances that make it easier to be better.
Here are some ways to start intentionally managing your money, whether dealing with a pandemic or not:
Where are you now?:
Start by taking stock of all of your income and expenses.
Pull up your recent bank, credit card, and other financial statements for, at a minimum, the month of February or ideally, 6-12 months, so you can see exactly how much money you have coming in and where it was being spent before the virus.
If you’ve lost your job or been furloughed, file for unemployment as soon as possible; due to the surge in applications, there may be a backlog.
If you’re in the market for employment, check out companies that are hiring due to increased demand from coronavirus like Amazon, Instacart, or Dollar General.
Bills, Bills, Bills:
Continue to pay your bills if you can. Coronavirus may have stopped our movement, but it hasn’t stopped our bills.
If not, proactively reach out to creditors, lenders, and landlords to discuss your options
Shop around to see if you can save by switching providers of services like cable/internet, car insurance, cell phone service, etc.
Focus on the essentials:
Consider how your income and expenses may be impacted in the coming weeks as the coronavirus continues to impact our communities and jobs.
Place your expenses into categories based on what’s essential (groceries, mortgage or rent, electricity, etc.) and what’s non-essential (eating out, clothes, entertainment, etc.).
Look for ways to cut nonessential recurring expenses, focusing on things that aren’t being used during the virus like gym memberships and subscription services.
Reallocate money that you’re saving from social distancing like getting your hair/nails done, Starbucks, etc. into other bills or savings.
Budget, Budget, Budget:
Create a budget prioritizing your essential expenses and building an emergency fund (if you don’t already have one) using paper, Excel or personal budgeting apps like Mint, PocketGuard, or You Need A Budget to keep your finances organized and help hold you accountable.
Quickly adjust your budget if your income is impacted by COVID-19 by eliminating spending non-essentials, negotiating with companies and focusing your funds into what’s truly essential.
Continue to look for ways to improve upon and refine you and your family’s budget in the coming months.
Boost your income:
Look for ways to make extra money from the comfort of your home. Just because you're stuck in the house doesn’t mean you can’t make money or potentially increase your income.
Think about ways to make money from home doing what you’re good at.
Great chef? Consider selling plates of whatever you’re cooking to friends and neighbors;
Know graphic design, web design or programming? Check out sites like Fiverr or Upwork for freelance jobs.
Can’t think of a talent? Get paid to watch ads, read emails, or take surveys on sites like Inboxdollars, or Survey Junkie
Start that passion project you’ve been putting off. Isaac Newton came up with the theory of gravity while he was quarantined during the bubonic plague, so find your apple tree; it may just come with an eventual payout.
We are just beginning to truly feel the effects of the coronavirus crisis (remember how normal things seemed just a few weeks ago?), but whether it’s 6 weeks or 6 months from now, one day COVID-19 will be behind us. In the meantime, as we all continue to grapple with the impacts, we have to be prepared to do more, or better yet, do the minimum, with substantially less. In the coming months, a few extra dollars could make a significant difference to you and your family. So seize this moment to take control of your finances so that you’re comfortable telling your money exactly where to go, instead of wondering where it went!
If you enjoyed this post and would like more information on being intentional with your life, check out my posts on value and goal-based living, intentional self-care, childcare and development, and relationships.