3 Choices During Financial Uncertainty Like Corona-virus
It's probably an understatement to say the world is a little crazy right now. For some people, it may even be a bit scary. The words panic, fear, doubt, and uncertainty all come to mind. It's okay to have a little fear during uncertain times, but don't let fear cause you to make poor decisions.
I recently took my wife and family on a vacation getaway. We cancelled our Florida trip some 18 hours away, and we opted for a 3 hour trip within our state. We saved some money and had a wonderful time. However, I was little shocked by the number of COVID masks we saw during our hotel stay at The Peabody in Memphis, TN, which I highly recommend. My daughters thoroughly enjoyed the parade of ducks through the hotel lobby and into the fountain at the center of the lobby. The parade of ducks has been a tradition at The Peabody since the 1930's.
Now, it was obvious from my time in Memphis that some people are living in fear and uncertainty. You may not agree with me, but I don't buy into the COVID hype. I've seen the real stats. I've seen the hundreds of doctors and nurses on social media who disagree with the numbers and how they are being reported, the media's coverage of COVID, and the fear mongering. However, the public fear is still real, and so is the impact to people's lives, the economy, and our country are real.
Whether the times are stable or unstable, success in life and money comes from making good decisions. When you stack up your good decisions one after another, life can be pretty amazing. An occasional bad decision with your life or money won't ruin you as long as you make enough good choices to keep moving in a positive direction. This holds true with your life and your money.
Even though we're living in a time with some uncertainty, there are 3 good choices you can make about your finances right now that will continue to move you in the right direction.
3 Things to Do During Financial Uncertainty
Have a plan for your money. If you don't have a financial plan, get one. If you have one, look over it again. Do you need to change it? What adjustments should you make? Don't settle for the same old plan. Ask yourself these questions: (1) Is my living money out of balance with my wealth money? (2) Can I reallocate more money in the wealth category to help build financial security? (3) Do I have too much in my play money category and am I missing my opportunity to build wealth and become a millionaire? (4) Am I sharing enough or too much in my others money category? A good spending plan strives for balance with the focus on financial security for today, financial prosperity in the future. Download the Basic and Advanced Spending Plan Templates
Look for multiple income streams. Boost your income. Whether or not you have a stable job, you should look for additional streams of income. As I like to say, people don't believe the party will ever end. That's my way of saying you never intended to get fired or layed off, but it happens. Bad things happen. Be ready when they do. By developing additional streams of income, you accomplish two things: 1) It gives you a fallback plan in case you lose your job or can't work, and it gives you options in bad times. It protects you and your family. 2) It helps you boost your income. Rather than your income being stagnant with that 3-6% raise per year, develop a secondary income stream that has no limits. It may take you a couple of tries to figure this out, but don't quit. Persistence is the key. Find something you enjoy and find a way to make money doing it.
Review your investments and review your financial advisor. Don't be complacent with your investments. If you an IRA, 401k, or other investments, review them. Often, you are just "another client" to a financial advisor or 401k manager. They collect a check whether or not you make money, and unfortunately, this means your investments sometimes aren't put into places that provide you with the optimal returns. A bad investment can cost you hundreds of thousands of dollars if your future net worth and retirement accounts. Always remember, no one cares about your money more than you do even your financial advisor. Look for investments delivering at least 10% growth over the long term (10 years or longer). If you are older and nearing your retirement years, your money may need to be moved into more conservative investments with less volatility and lower returns. Is your financial advisor's fee to much? Can you get it lowered or find an alternative that saves you 1% on fees?