Managing money has myriad challenges and the novel Coronavirus (COVID-19) crisis has just made them even bigger.
The market has taken a plunge, thanks to the pandemic and there is no consensus on the best investment opportunities you can rely on at such an uncertain juncture.
Considering the volatile situation, realigning your personal finances makes sense so that you don’t end up losing all your money by the time the Coronavirus crisis ends.
Here is some useful wealth management advice from experts that can help you get through these unexpected circumstances.
1. Revisit your financial goals
Whether you have just started your career or are nearing retirement, you will probably have some money goals for the future.
No matter how smartly you may have set these objectives, now is the time to revisit and realign because the future is no longer the same.
Now that the markets have taken a blow and the global economy is bound to experience a slowdown, it would definitely impact your income.
This would exert pressure on your monthly budgets, insurance premiums, retirement savings, and mortgage payments.
Moreover, your investments and new asset acquisition plans will also be affected. Obviously, a realignment of your financial goals is the need of the hour.
2. Keep ample liquidity to address urgent needs
Emergency situations like the current one make it all the more important to have liquid cash in hand.
There is a looming fear of job losses and pay cuts for everyone, which means that having enough liquidity to cover up your daily requirements will make you stress-free.
It is advisable that you keep your money in instruments that can be easily liquidated whenever you need quick cash.
Even while budgeting, setting out an amount for emergency savings every week or month is a good idea.
You should also explore your borrowing options in case you require a quick loan for your emergency cash needs.
3. Minimize your financial obligations
Another sensible money management advice during such challenging times is to minimize your financial obligations.
As a rule of thumb, you should budget for the upcoming period and ensure that you also stay within the parameters. The best approach would be to curtail your expenses as much as possible.
From something as basic as settling for simple meals to deferring your home renovation plan, there is much you can do to break the expense circle right now. And if you are fortunate enough to have some surplus funds, reducing your loan obligations is a great idea.
While this will cut down the interest burden, you will end up lightening your debt as well.
4. Don’t take panic-driven decisions
Even though the situation is confusing now and it is easy to freak out, don’t let panic drive your wealth-related decisions.
Prioritize the value of patience when it comes to wealth management during the COVID-19 crisis.
Experts at Bogart Wealth recommend watching and monitoring the market trends patiently and attentively while taking every single investment decision.
The markets have seen crashes in history and survived to come back stronger as well.
Make sure that you don’t buy or sell just because everyone else seems to be doing so.
Rather, ride out the waiting period by holding on to your long term investments.
They will surely pick up once things get normal. If you are not sure, seek advice from a wealth management specialist.
5. Do not fall for COVID-19 pandemic scams
When it comes to making your investment and money decisions wisely, it is important to steer clear of the pandemic scams that are likely to be around at this time.
There are unscrupulous people who look to take advantage of the panic wave. Scammers may try to sell useless stocks and shares or convince you to share your confidential financial details.
Remember that this is not the time to gamble or speculate, so keep a distance from anyone who makes promises that sound too good to be true.
Rather, trust only a reliable expert who would give you just the right recommendations.
6. Keep track of new opportunities
Being judicious about spending is a smart thing to do but this does not mean that you miss out on opportunities. Keep your eyes open for new opportunities because there will still be some good ones.
Investing in healthcare and pharma companies, for example, is a smart decision right now because the industry is all set to experience a boom in the near future.
Similarly, if you are running a brick-and-mortar retail store, consider investing in an online website because that is the way you can make your business future-ready.
Who knows, this COVID-19 crisis may well bring a big opportunity when you scratch the surface!
7. Fortify your wealth
Apart from making wise money moves and securing the opportunities that are there, you also need to fortify your existing wealth.
The COVID-19 pandemic is as much a threat to your wealth as it is to your health; so taking the right measures to protect them both is essential.
Abstain from using up your tax-privileged retirement accounts because you will probably be tempted to do it. Don’t just sell stocks or equity mutual funds only because the market has taken a plunge.
Pay attention to insurance due dates as well, whether it is about insuring your health or property.
There are several new-age platforms that offer digital financial products that are contactless and paperless. So you need not worry about stepping out for the renewal of your insurance or getting a new one.
More than any piece of wealth management advice in the current state of things, what you really need right now is a positive and realistic attitude.
Things will certainly get better once the crisis is over, but you need to be well prepared to handle the situation to the end. Being smart with every penny you spend and invest in the right approach.
Securing your existing wealth should be a priority, but you shouldn’t miss the chance to increase it as well.
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