Sound Financial and Investment Tips in the Era of COVID-19

Hello. In these tumultuous times, it can feel like investing in the stock market is not a good idea. But there are a few money and stock investment tips that can work even in the age of COVID-19:

According to WallSteetWindow.com, here are few investment tips that have been popular with readers over the past few months. WallSteetWindow.com is a premier financial market and geopolitics News site that provides market and political intelligence to investors and the public alike.

Stock Market and Investment Tips in the age of Coronavirus

Probably the last thing you want to think about during a worldwide pandemic and lockdown is how to cultivate healthy financial principles such as saving money. But saving a significant amount of money even in a pandemic is very much possible.

According to Saundra Davis, founder, and executive director at Sage Financial Solutions, a San Francisco Bay Area-based nonprofit outfit, “Every time you put some [money] away, you’re looking out for your future self,”. Financial prudence can be the difference between sinking and staying afloat in these shaky times.

Whether or not your financial situation has changed since the start of 2020, you may benefit from these saving strategies now or down the road.

Work to reduce costs

One of the disciplines that can make a difference in this COVID-19 season is learning how to cut unnecessary costs. During an ongoing crisis such as a pandemic, you might need to redefine what is absolutely necessary and get rid of what is “unnecessary”.

Start with reviewing the cost of bare essentials needed to operate your household. These include rent or mortgage, utilities, and food. The Internet bill can also be regarded as an essential these days given a lot of people work from home and kids go to school online.

Credit card should be paid in full every month. This is one of the best disciplines in hard times instead of just paying the minimum. If you have a huge loan, speak with your creditor to see if it can be restructured. Don’t be in a position where your lender decides what you can pay. Negotiate and come up with an acceptable amount. This might mean working with your lender to reduce payments or suspend them temporarily.

Restructure your savings goals

Come up with a specific dollar amount to save each month or each paycheck. Create an emergency fund. For instance, work towards a standard goal that involves building up to three to six months’ worth of living expenses. But during an emergency, consider resetting expectations.

“If your income changes, you aren’t beholden to saving a fixed amount,” says LaKhaun McKinley, a certified financial planner and owner of the firm MNM Vested in Katy, Texas.

The way you save might need to be tweaked, too. If you use automatic transfers from checking to savings accounts, see if that amount is still doable for you. If not, reduce the amount. Or, as a last resort, cancel the transfers for the time being and make one-off transfers when possible.

Opening a high-yield savings account at an online bank is a good strategy, regardless of the economic environment. The national average rate is 0.06%, but some online savings accounts are currently offering over a 1% annual percentage yield. The account-opening process can take a few minutes.

Opening a high-yield account “can be such a simple way to earn more,” says Kelley Long. She’s a Chicago-based certified public accountant, financial planner and member of the American Institute of CPAs’ Consumer Financial Education Advocates.

Getting help

Some relief is nationwide, including postponed federal student loan payments and coronavirus-specific unemployment programs, but your local community might have additional resources.

Dip use up your savings without a plan

If you have an emergency fund and you need it now, use it. But estimate the amount you need before withdrawing, and keep tabs on how you spend it.

You’ll eventually need to save up again, and you want to make that process manageable. It might help to settle on a minimum amount you need to keep in a savings account to feel OK.

“Everyone has a different feeling [for] what would give them that security,” Long says. For some people, for example, “seeing a comma in your account can have a formative effect on your feeling of financial security.”

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