2020 has been a challenging year for humanity. Critical human rights issues, the coronavirus outbreak, nationwide riots, political discourse, and business shutdowns are consuming the news. It’s a lot to handle and many are — rightly so — feeling overwhelmed by it all. It’s easy to understand how one might become distracted from their finances during this time.
But a simple, effective approach can help regain that focus. Here are four simple financial tasks — which you can act on right away — that can help improve your future financial outlook.
Review and eliminate recurring expenses
Find recurring expenses — no matter how small — for services that you’re no longer using and drop those costs. You might be surprised how many you will find. Also, consider services you do use… but not as often as you should. A great place to start: think of three monthly subscription services or bills you’re currently paying that you can live without. It may be helpful to review your card statements for recurring charges, or your emails which may contain notifications of these charges, to track them down.
Truth is, when things are going well, we tend to let expenses slide. Taking a close look at where each dime is going will help you trim these expenses quickly.
Continue investing and saving
Continue investing and saving, even though it may be nerve-wracking or stressful to do so. I recommend that you avoid fear and pessimism about the economy and stock market that you may be feeling these days. There have been many crises in our country in the past, and you can bet that there will be other crises in the future.
Stay focused and continue to set aside whatever amount of money your budget allows no matter how difficult it may seem; this will help plan for your future.
Closely review your insurance policies and coverage
Review your insurance policies to make sure your coverage amount is appropriate and the premium you’re paying is competitive. Many folks will get insurance policies, stick them in a drawer, and forget about them. Take a free moment to pull out your policies and reach out to your insurance advisor(s) when you are able.
Lower your interest rates
Interest rates are currently at all-time lows. This means you can analyze your mortgages, credit cards and other debt to see if you can lower your rate(s). You can simply call your banker, lender, credit card company, or otherwise to inquire about getting a lower rate. I believe there will be a time in the future when interest rates will be higher than they are today — we will look back and wish we locked in our debt at the low rates of today.
Being financially fit is a marathon, not a sprint — no different than being physically fit. It takes dedication, perseverance, and focus. While the world is struggling with important problems, it can seem overwhelming. Having your financial outlook at the top of your mind during times like these — even when it is a challenge — can help prepare for your future. I hope these tips help you take action where it can help you most.
July 2020
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Investing involves risk including loss of principal. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual
