(PowerInEmail.com) – Chances are you have money on your mind right now. With the coronavirus wreaking havoc in households globally, making smart money decisions is vital. Hanging on to your pennies is important, and watching them grow is even better. Here are some finance tips to help you save during the COVID-19 outbreak.
Don’t Blow Your Stimulus Check
If you’ve already gotten your stimulus check or are expecting one soon, don’t get too excited about it. Your first thought may be to go out and buy a new TV or spend it on some new clothes. Focus on using that money to stock up on groceries or pay ahead on your monthly bills. Finding wise ways to spend the money can really help your finances out in the long run.
Call Your Lenders
Are you getting notices from your bank that they will defer payments? Some lenders are offering ways to help ease the burden of COVID-19, according to a Forbes report, starting with your monthly loan payments. If you’re experiencing a lack in pay and funds are running short, it would be worth a try to contact your bank to see if you can get an extension on your monthly payments.
Don’t Rack up New Credit Lines
One of the best ways to keep your wallet in check during COVID-19 is to avoid taking out new credit cards or extending your lines of credit. This is because it affects your debt-to-income ratio, and you end up paying more in interest and fees over the course of the loan. If you have to borrow money, keep the terms affordable and try to pay it off as soon as possible.
Rework Your Household Budget
Now is the time to see exactly what your budget is doing. It might have changed a bit since COVID-19. You may be venturing out less, so gas and other spending, like going out to eat, is minimized. This leaves more money in your bank account. Try not to spend it wastefully; stash it away into your savings account instead.
Redirect Extra Cash to Emergency Funds
Any extra cash should go to savings, but don’t forget to build up your emergency fund too. The Balance recommends trying to save up at least 3 to 6 months of your income to put away. Use your stimulus check or any extra money to work at building up your emergency fund.
With an uncertain future, it’s important to nurture your funds as much as possible. The best way to do this is to keep from depleting your savings and work on building it up instead. Small, simple steps will help you thrive through the corona crisis and end up with enough money for a safe and secure future.
~Here’s to Your Success!
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