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Meeting your financial goals is the ultimate. However, at a time when everything seems to be all doom and gloom, it can be tricky. The COVID-19 pandemic is having a huge toll on businesses as well as the people.
Millions are staring at unemployment, while others have had to bear with huge pay cuts. These challenges can make it hard to attain financial stability. However, through proper planning and understanding of your needs, you can weather the storm and achieve your goals.
Read on to understand how to meet your financial goals in unstable times;
It’s essential to reduce spending by cutting down unnecessary expenses. If you are going through a financial hardship, try to gain control over your expenses.
Your spending habits must change unless you don’t mind eating into your savings. While it may be difficult to cut spending on luxurious activities, it’s worth every effort. Reduce expensive travels, premium subscriptions, high-end parties and treats, and even unnecessary shopping.
If you have to engage in any luxury, let your spending be minimal. This way, you will save more and move closer to achieving your financial goals.
To achieve your financial goals, you need to have a robust emergency fund. It’s generally recommended to have 3-6 months’ worth of expenses in your emergency kit. However, with the uncertainties brought about by the pandemic, it’s advisable to push that to a year’s worth of expenses.
To achieve this, trim your unessential expenses and commit the extra money to the emergency saving.
If anything can hold you back from achieving your money goals, then it’s debts. Debts take a huge chunk of your income, leaving you with very little to budget. It’s even worse for people who spend all their money to pay debts so they can borrow again.
Ask your creditors to restructure your debts. You might have to prove that you are going through some hardships. Restructuring helps you pay less, especially if your income has reduced or you’ve lost your job.
Negotiate payments with your credit card providers to lessen your payments. They can offer temporary relief if things aren’t too good on your side.
Also, consider refinancing your mortgage. With the Federal Reserve cutting interest rates, refinancing can help you greatly. Even a 1% drop in your mortgage rate can be a huge reprieve.
Your investment decisions will play a key role in achieving your financial goals. Even with the stock market declining and becoming more unpredictable, do not sell out. Avoid the anxious mentality and hold on to your investment. The economy is likely to recover quickly.
Also, if you want to invest, hold on until the dust eventually settles. This way, you will avoid making unprofitable money moves that may lead to losses.