We might be in a market downturn, but it is always possible to work toward your financial goals. Whether your job has been impacted by the pandemic or you are just looking for a way to add to your emergency fund, there are a few easy solutions that anyone can take advantage of.
Take a few steps to work on your financial security during this unpredictable time. Here are some financial tips anyone can use to improve their economic situation.
1. Build a Savings Fund
The most important economic plan anyone can make is a savings fund that includes at least a few months of living expenses. Medical emergencies, changes in employment, and natural disasters are always possible, but the financial implications are even direr in an ongoing crisis.
Savings-building apps like Chime and Acorns can help those who have been shopping online often while in quarantine. There are a ton of apps on the market that process microtransactions to save money automatically in small increments, and you won’t even miss the money from your checking account.
2. Start Investing
You may have read that saving liquid cash is more important than investing during a crisis. Having a rainy day fund is very important, but why shouldn’t you make your disposable income work for you whenever possible?
In fact, certain industries have been thriving amid the COVID-19 pandemic. Consider investing in growing areas like:
- Distressed credit
Robo-investing apps like Robinhood and Ally help new investors gain control of their portfolios independently, without making a huge initial deposit.
3. Pay Off High-Interest Debt
If you are carrying a high-interest balance on a credit card, you’re throwing away money every month. Prioritizing paying off expensive debt is one of the easiest ways to get back on your feet.
If you need fast cash to pay off a debt balance, you can try searching for title loan places near me or calling your local title and payday loan services.
4. Negotiate Current Bills
You might have a budget that accounts for your recurring and static expenses, but you might be able to reduce your regular bills by calling your service providers.
Your bills might be eligible for:
- Payment credits
- Member discounts
- Annual fee reductions
- Specials and promotions
In many cases, just asking for a discount is enough to reduce your recurring bills by a significant amount. When it comes to saving money for an emergency, every dollar counts.
5. Research Real Estate
Did you know that it is possible to build your real estate portfolio without buying an entire property? You can diversify your investments for less than you might think.
There are a few top ways early investors like to enter the real estate industry without dealing with property exchange. Popular methods include REITs and real estate ETFs.
Real estate investing usually includes anything that isn’t valued by equities or fixed income. By taking advantage of these alternative investments, you can gain similar returns to property ownership without the headache of being a landlord.
Getting on your feet after a major financial event can seem daunting, but making a few small steps can go a long way toward alleviating economic strain during trying times.
6. Opt For A Frugal Lifestyle
It would be a smart idea to lessen daily expenditures and learn how to live frugally because if you will figure out how to make do for little, you can improve your finances and when a crisis happens, you will not find yourselves scrambling to transition to a new lifestyle.
Living thriftily isn’t as daunting as it seems, and a financially secure lifestyle is not about saving money and trying to deprive yourself of items that give you pleasure, contrary to popular belief. Instead, it is about making meaningful spending decisions that reduce costs, with little effect on your habits.
There are plenty of ways in which you can begin to spend wisely. For example, if there are two cars in your house, consider limiting them to one and make use of public transport. Or if it is necessary to have two vehicles, probably sell one of the cars to save on the cost of petrol for a much more energy-efficient subcompact vehicle.
You may also reflect on your house or condo being downsized, investing less in cooking, and cutting back on your cell phone plan.
7. Expand your Income
The expression “do not throw all your eggs in one basket” is common to many of us, and this old saying may be extended to the means of income as well.
It is an implicit risk to focus entirely on a single job for all your money, and if the market collapses and you quit your job, you will also drop your only livelihood and your capacity to satisfy all your financial commitments.
Getting many income sources would really benefit. You have other sources to fall back on to help hold you going if one income stream continues to decline or gets totally excised. In addition, if your partner operates in a different sector than you, you do have income flexibility right there.
Broadening your income doesn’t always involve getting a second career. So you can look at several different ways if you wish to spread your wings and pull in even more money, like renting a part of the house, renting a spot in your workshop, or going so far as to purchase and renting a place for profits.
Ending Note: Tips for Financial Growth During a Downturn
In nutshell, if you only know how to put yourself to seek the good that is still there, all times are happy times.
There are ample prospects buried under the pessimism of the downturn if you only know where to look. I’m not suggesting these are not rough times, but in any financial setting, intelligent capital builders know how and when to exploit resources.
Not only can an insightful and well investing plan save you from financial risks, but it can also help you to develop a stable long-term strategy.
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