What Crisis Can Teach Us About Money
It is safe to say we are dealing with some seriously uncertain times. With businesses closing and a lot of people losing their jobs, many are terrified of a financial crisis – much like the one in 2008. These troubling times can make you start to panic about what you should do next. But if there is anything we should be taking from the coronavirus, it’s what it is teaching us about money.
We are learning – whether we know it or not – how we need to better plan for an emergency. As much as you’ll hear it, we have to be better at being financially prepared. With our stock market being heavily affected by COVID-19, we have to have the funds necessary to keep us afloat when an emergency strikes. But how do we make sure our funds are in order? Well, these steps will help when you want to start focusing on your finances.
Make It A Point To Start An Emergency Fund
Especially during these times, an emergency fund is extremely important. Emergency funds are just that – funds you set aside in case of emergencies. If you fall ill and have to stay in a hospital, an emergency fund can greatly help you pay for the medical bills. Like now, emergencies can cause you to become unemployed. If that does happen, having an emergency fund set for three to six months of having no job can help you maintain your bills and necessary spending. Even if it can be difficult to set aside money you essentially don’t touch, you will greatly appreciate it in the long run when you have the money you desperately need. It isn’t hard to set one up either. Just make a note of how much your expenses usually are and whatever money you have leftover is what you would set aside.
Take Advantage Of Your Insurance
If you are still able to maintain your job during these COVID-19 times, you should think about using your medical insurance now. Having medical insurance is something we all need. Almost every medical procedure is expensive; never mind if you had to go to the emergency room before your medical procedure because those prices skyrocket even more. Now is the time to get your health checks in line while you still have the insurance to do so. The best part is most employers have insurance plans that’ll cover you, your spouse, and any children you have. Especially with viruses like the Coronavirus going around, being able to get the medication you need with the help of insurance could literally be what saves your life. So don’t tempt fate, and make sure you can sign up for some health insurance for you and your family.
Do Not Dip Into Your Retirement Fund Or Your Investments
While it is terrifying seeing the stock market fluctuate like it is, this does not mean you should take your money out of the market. The stock market relies on how our jobs are doing. If we stop traveling, working, or spending money, the stock market will dip down. As scary as this may seem, this means that it will go back up once everything settles down. So, if you take your money out now, you will actually suffer in the long-run. Likewise, if you start dipping into your retirement now, you are almost making sure your future is not what you wanted. Financial experts say you should not stop contributing to your retirement and to definitely not dip into it now.
If you are nearing retirement and don’t have one set up and are afraid to, speak to a financial advisor to give you some direction on where you should start. And with the stock market being low, many stocks are very affordable, so if you are long from retirement, you may benefit from buying some stocks now. They say even increasing your contribution to your retirement fund could be beneficial if you are a long way away from your goal retirement age.
Get A Title Loan From South Carolina For Extra Assistance
While these steps can be very effective, there are still those emergencies that cause you to find extra assistance. When you need that little bit of extra help with any unexpected financial emergency, a title loan from South Carolina Title Loans can be the answer. You can even get a title loan with no job. The process is very easy. You just start by filling out the online form and then you will get a call from one of our loan representatives to tell you what else needs to be done and where you can find SC title loan places near you. Give you and your family some added comfort and work your way to becoming debt-free and financially ready for unexpected emergencies.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.