8 Financial Decisions to Make in A Pandemic
Currently, our world is faced with a once in a lifetime pandemic that has altered life as we know it. Some of us have been directly impacted by the Covid-19 virus either through the loss of a loved one, loss of a job, closed schools, and being quarantined at home just to name a few. My thoughts and prayers are with everyone impacted as well as our local, national, and world leaders as we are all navigating life from different lenses. Outside of the health of people, the second greatest impact of this pandemic we are in is the financial impact it has made on families. We are experiencing record breaking unemployment claims being filed across the nation. Many people have lost their jobs, had hours reduced, or lost their businesses. In many cases, these events have led to a scenario where people can’t afford to pay essential expenses such as rent, mortgage, and food. Over the next few moments, I want to share 7 financial decisions to make in a crisis. In many cases, these can be beneficial for you and your family to put into practice outside of crisis as well.
1. Evaluate your expenses: Take the time to reevaluate your expenses. Some of you may already have a budget and it’s quicker to get a jumpstart on this. Even if you already do have a budget, it’s a great time to revisit all of your expenses.
2. Eliminate or reduce nonessential expenses: This is a must for all of us who have experienced any type of job loss or reduced hours. Nonessential expenses are simply expenses for things we don’t need. Reducing these types of expenses will serve you and your family in the short- and long-term financial journeys. Examples of these expenses are things such as streaming services, “fun money” (a phrase my wife and I use to describe money we can spend on whatever we want), clothing expenses, monthly subscriptions, movies, eating out, etc. Save a dollar now, so you can serve a dollar later.
3. Refinance your mortgage: Due to recent rate cuts by the federal government, rates are really low compared to what they have been in previous years. Refinancing your home now could save you hundreds of dollars each month that will total tens of thousands being saved over the life of a loan. Being able to save hundreds of dollars each month would be a financial blessing to anyone.
4. Get auto/home insurance quotes: Connect with your insurance agent to see if you are getting the best rates that they are offering. There may be discounts that you are eligible for now that you were not previously. It is best practice to shop around for these expenses a couple of times a year to make sure you are still getting the best rates as possible. Shopping around for quotes can save you a ton of money. In many cases, families are able to increase coverage while decreasing the amount they are paying. You won’t know how much you are able to save or if you currently have the best rates possible if you don’t shop around.
5. Consolidate debt: Similar to refinancing a mortgage that I mentioned above, rates are at low levels so it is a great time to shop around and consolidate debt. Consolidating debt can allow you to free up money each month. In addition to a lower rate, you’ll be in position to pay off debts sooner, thus saving you money in both the short term and long term.
6. Monetize your hobby: Evaluate the things you are passionate about. If you can, monetize your passion. For example, if you are passionate about yoga, start an online yoga course. Monetizing your hobby while leveraging technology could bring income into your home.
7. Be vulnerable. Ask for financial help if you need it: It is no secret that families around the world are impacted by our current economic climate. There are organizations and people aware of this that are utilizing their resources to be a blessing to others. Someone may not know you need help financially if you don’t ask. Don’t allow pride to roadblock someone’s servitude toward you. God uses people to reach to people. God uses people to serve people. Allow people to be vessels. Allow people to be the hands and feet of Jesus.
8. Don’t lose track of who God is: Don’t allow this storm to dictate how we view God, but allow God to dictate how we are going to get through this storm. There is a songwriter who wrote “When I cannot see it, God I still believe it. You are working all things for my good.” Even in times where we are surrounded by pain, sorrow and confusion, God is at work. God doesn’t work sequentially, He works simultaneously.
It is with great desire that these items will be of service to you and your family. Stay postured at the feet of Jesus and allow Him to be your peace through this time. Put faith over fear. We will get through this. Love God, love people. Serve God, serve people. Go Skyward.