Five Things You Should Be Doing Right Now

Every one of us has been affected by the Covid-19 pandemic in some way or another.  For some, the impacts may be minimal disruptions to every day life, while others may be undergoing serious health concerns or major financial turmoil.  These are unprecedented times for most of us and it often feels like we have very little control over the outcome.  Rather than spending time watching the barrage of daily headlines that often offer conflicting information, it is important to maintain mental and physical health by focusing on what you CAN control and taking action on those items.  Here are some things that I have done to greatly increase my opportunities for coming out of this financially stronger and recommend others can replicate in their own ways.

1. Update budgets and financial statements -  Becoming unemployed due to the pandemic has forced me to dive deep into my annual budget and financial statements to re-evaluate  discretionary spending.  Most of us have a lot of things that we can do without and not really suffer a major decline in lifestyle.  Personally, I was able to reduce my monthly expenditures significantly by going through my budget line by line.   So far, I don't really feel like I am missing out on anything.
2. Evaluate every bill that you pay - This is similar to point above but takes it a level deeper and actually looks not only if the overall expense itself is justified but if the expense be reduced.  In the cases where there are multiple providers, take this time to shop around to compare services and prices.  I was able to make a major impact on my bottom line by switching cell phone and internet services, trash removal, and prescription medications.  
3. Get quotes on insurance coverage - Chances are good that the insurance costs on your home(s), car(s), toy(s), etc. have continually escalated, especially if you have been with the same provider for a long time.  This is a great time to review your coverage and make sure that is in alignment with your risk tolerance.  By no means do I think that anyone should skimp on insurance coverage resulting in a catastrophic loss, but make sure that you aren't paying for something that you don't need.  Are your deductibles in line with what you are capable and willing to pay?  Does your coverage match the value of the asset insured?  Shop around for quotes, making sure that you are comparing apples to apples and considering the service provided by different providers.  I was able to find a reputable provider that quoted the same coverage I had on some rental properties for significantly cheaper.  The total savings added over $150 per month to my cash flow (that's $1800/year!)
4. Look for additional streams of income - Sometimes it takes an unexpected event like this to make us realize that even a "secure" job might not provide income during times of crisis.  Evaluate your skills, talents, and likes to come up with ways that you might be able to develop a "side hustle" for extra income.  That income can be used for savings and investments during good times and possibly support you during the bad times.  
5. Continue to build cash reserves - It may be harder than ever to set aside money in savings right now but doing so is also more important than ever.  With all of the uncertainty about how long the pandemic will last and what the future economy looks like, having an adequate supply of cash will be crucial.  Arguments can be made for both a deflationary and inflationary economic environment in the near future.  Building cash now will give you options to take advantage of opportunities in either case.

These five things are just the beginning of taking care of your financial house right now.  Obviously, taking care of yourself physically and mentally comes first so make sure that you are taking steps to stay healthy.  

Stay safe my friends!

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