There is a lot going on in the world right now. The stock market is a mess, people are losing their jobs and most of us have been grounded at home for at least two weeks. In a time of uncertainty and fear, it helps to have a strategy.
We’re all anxious right now, and that is completely valid. Recognize those feelings, but don’t let them consume you or your decision making capabilities.
There are two important things to remember during this national crisis: We will get through this and you have control over your emotional response to all the messed up news going around.
Take a breath. Take another breath.
Here are 5 ways to get your finances in order during a financial crisis.
1. Don’t Go Into “Fix-it Mode” Immediately
The person that has the pay cut or has lost their job is stressed and overwhelmed. Don’t come out in “fix-it mode” right off the bat.
Give them a couple days to let the event sink in. Give them decompression space.
Be there for their quiet moments, their crying moments, or their (healthy) anger moments.
Sometimes we simply need to be with each other.
2. Rev Up Your Side Hustle Income
Once you have had some time to accept the bad news, look for ways to increase your income elsewhere. For me, that means working on more videos, blog posts, Etsy products and exclusive Patreon content. A free way that you can help me out is to watch my videos.
Here are some of my side hustle and passive income videos:
Ways to bring in extra money:
•Healthywage has been a leading provider of wellness challenges, both for corporations and direct consumers, for over 10 years. It uses cash prizes to make weight loss and fitness more fun and effective!
•Mistplay pays you to play games! Discover new games in your mixlist, choose a game and start earning units! Redeem your units for cash rewards, whenever you want.
• MyPoints: Earn free gift cards for answering polls, surveys and so much more! Earn $5 when you take 5 surveys!
• Opinion Outpost: Earn free gift cards by sharing your opinion in online surveys.
•S’more is a lockscreen rewards app that allows you to earn points in exchange for us placing ads and content on your lockscreen.
• Survey Junkie: Share your opinion to help brands deliver better products & services.
•Handy.com: Handy is the quickest, most reliable way to book household service providers. Within a couple of minutes, you can book a pre-approved cleaner or handyman for any time you’d like.
3. Sit Down and Write It Out
Now is the time to sit down and plan. Cut unnecessary expenses, pay minimal payments on your debts until things return to normal, live within your means, don’t go out and make ‘dumb’ financial decisions that you cannot afford.
If you and your spouse buy a house and one of you loses your job would you still be able to afford the payments? If not, then you shouldn’t be buying the house.
4. Buy when the market is down
Over the next several months the market is going to be up and down. Every time the market dips, I’ll be buying. My advice? Don’t touch your face and don’t touch your 401k. If you are in the position to invest in the stock market, do so. Buy and hold your investments and whatever you do, do not pull money out of your retirement accounts. You’ll lose more money on top of what you’ve already lost in the downturn with fees and taxes. The market will go up again, you just have to be patient and be in it for the long haul. I use M1 Finance to because they offer free trading and fractional shares which is a game changer for getting in on those companies with shares outside my budget!
M1 Finance: Invest In Fractional Shares and Auto Reinvest!
Webull: Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1400)
5. Take Advantage Of Quarantine
We’re all going to be home for the foreseeable future. Spend time with your family, complete projects around the house that you’ve put on the back burner and educate yourself. Things are going to become challenging due to this pandemic.
Now is the time to get your finances in order. It’s the time to binge watch YouTube and learn how to turn your money situation around.
Ways I save money:
Here at Freedom In A Budget, I am all about saving money! Here are some of the EASY ways that I save money:
• Fetch Rewards is a free grocery savings app that rewards you just for snapping pictures of your receipts. That’s really it. Free gift cards on groceries on thousands of products every day, no matter where you get your groceries. Just scan your receipts and get gift cards from places like Amazon, Starbucks, Target, Ulta, Applebees. Use code QHKBH to earn 2,000 points ($2)!
• Rakuten/Ebates: Rakuten is my to go way to earn Cash Back from over 2,500 stores like Macy’s, Amazon, Sephora, Walmart and much more. Join Rakuten today for free, and you’ll get a $10 Cash Bonus to get you started! Every three months, you’ll get a Big Fat Check in the mail or a PayPal payment just for shopping.
• Blooom: FREE 401(k) or IRA analyzer, Let the experts take a peek at your retirement account. Get real advice on how it’s doing and how it could be performing better
• CIT Bank offers CDs and savings accounts that provide a safe, secure way to grow your savings.
• M1 Finance is an easy to use brokerage platform that allows you to invest in Fractional Shares and auto reinvest!
• Gabi is a full-service, online advisor who compares all your insurance options to find you the right policy, all in under two minutes.
• Budget Templates: Excel budget templates with pre-populated categories and formulas to keep you on track with hitting your financial goals.
What are you doing during this national emergency? Did these steps help you? Let me know!