1. Improve Your Budget
a. This situation is not normal. There is so much uncertainty in all of our lives during this period and in order to live comfortably, it is very important that you are able to cover your necessary expenses to live a relatively comfortable lifestyle. Look at your monthly budget and look for new ways to save money. Try to spend less money on expensive food, gas, parking during the pandemic. After reducing your expenses accordingly use the extra money saved to create a financial cushion you can rely on in the coming weeks and months as needed. Nobody knows how long this pandemic will last, this is why having savings during this period is so important.
b. What you can live without? The less you spend, the longer you can you’re your savings last.
2. Decrease Debt
a. With any money left over from your new budget use it to pay down any debt that you may have. Focus on paying the high-interest debt first and the lower interest ones last. This will decrease your monthly expenses over time and may help if the pandemic continues until the end of the year.
3. Build Emergency Savings
a. You should have sufficient emergency savings that will allow you to live comfortably for three to six months. If you can increase your emergency savings to a year’s worth of expenses that would be an even better safety net.
b. If you don’t have emergency savings, you should start by decreasing nonessential expenses and any extra money saved to build your emergency fund as soon as possible. The future is uncertain.
c. When things go back to the way they were, you can use the money saved to pay off more loans or invest.
4. Invest the Rest
a. If you can afford to contribute more to your investment portfolio after paying off high-interest debt - the market will return as exhibited in past recessions.
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