COVID-19, social distancing and recent stay at home orders have impacted all aspects of life, including our finances. Protecting health has been a top priority in recent times. We all need to be following guidelines and making our best efforts to stay physically and mentally healthy to prevent disease. Maintaining financial health during these times is also critically important. Financial wellness is an aspect of wellness that focuses on the successful management of finances. Improve your financial wellness today with these tips:
- Create a budget. Take a close look at your spending and adjust your budget accordingly. Saving wherever possible will help your budget in the future.
- Establish an emergency fund. If you do not have an emergency fund, now is the time to start one. If you have money set aside for non-essential spending or travel, consider using these monies for emergencies instead. Any amount you can put aside to help support you and your household during an emergency will make an impact on your finances.
- Pay down high-interest debt. If you have any high-interest debt (besides credit card debt) a personal loan or similar and your income has not yet decreased, consider paying off that debt now. The benefits of reducing debt are immense as this provides financial freedom.
- Consider a balance transfer. Transferring any credit card balances to a 0% for 12-18 months is an option. Look for no- or low-fee transfers and do your research on any new credit cards before committing. This will give you time to pay down the balance interest free which will free up more cash on hand for the unexpected and add to an emergency fund.
- Look at your investments. Fight the urge to take a loss and withdraw all your money from the market. For mid-long-term time, it is important to stay the course. No one can predict what will happen short term, yet over the long run, the economy and markets will come back.
- Consider insurance options. Some insurance rates may have dropped offering discounted rates. Contact your insurance providers to see if you are eligible for a discount or lower rate. Compare rates with different providers.
- Talk with your family about money. Discuss how market fluctuations are normal and be open about any negative impacts on your finances. Discuss ways you can save money as a family.
- Get your credit reports. AnnualCreditReport.com provides a yearly free credit report. Read over your reports carefully for any suspicious activity. If your reports reveal negative borrowing habits from your past, brainstorm ideas to correct them and improve your score.
Practicing financial wellness can have positive mental health benefits, including boosted self-confidence. Take charge of your finances today and be prepared for the future.
For free financial assistance, contact us at: go.osu.edu/FinancialAssistance
Written by: Beth Stefura, OSU Extension Educator, Mahoning County stefura.2@osu.edu
Reviewed by: Jenny Lobb, OSU Extension Educator, Franklin County. lobb.3@osu.edu
References:
Consumer Finance Protection Bureau. https://www.consumerfinance.gov/coronavirus/
Ohio Line, Ohio State University Extension. Preparing a Net Worth Statement. https://ohioline.osu.edu/factsheet/hyg-5245
Ohio Line, Ohio State University Extension. Some Options for Resourceful Living. https://ohioline.osu.edu/factsheet/hyg-5248
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