4 Tips for Restoring Financial Wellness Post COVID-19
As businesses begin to reopen, the country is struggling to find a new normal. Many people experienced a financial hit due to the COVID-19 crisis. Layoffs and furloughs were widespread, while shortages drove up the prices for groceries and household goods. The balances in retirement accounts plummeted while credit card balances soared.
Now is the time to restore a sense of financial wellness. Here's what you need to know to help your finances bounce back from the effects of COVID-19.
1. Use Any Monetary Windfalls with Care
Many individuals were eligible to receive government-issued stimulus payments. Other people are receiving bonuses for working throughout the COVID-19 pandemic.
While it's tempting to use these windfalls on fun stuff, it's important to use any unexpected cash as wisely as possible. Open a savings account with your credit union, and start an emergency fund. Or, use the money to pay off your high-interest debt.
2. Make a Plan for Paying Off Your Debt
If you used credit cards to cover unexpected expenses or to bridge the gaps in your budget, now is the time to create a plan for paying off the debt. Take a moment to write down your current income and expenses. See what areas you can cut so you'll have extra for paying off your debt.
Feel like your payments aren't putting a dent in your debt? Transfer the balance to a credit union credit card with an attractive interest rate. The lower your credit union card's interest rate, the more of your payment will go to paying down the debt.
3. Look for Permanent Solutions to Tackle Long-term Changes to Your Finances
Unfortunately, some of the effects of the COVID-19 crisis can't be remedied overnight. Some industries, like the travel and hospitality industries, are expected to take months to fully rebound. If you're facing long-term changes to your finances (such as a permanent income reduction), it's wise to explore more drastic options for restoring your financial wellness.
You might contact your credit union to see if refinancing your mortgage will reduce your monthly housing costs. Or, you could transfer your debts with high interest rates to a more affordable debt product from your credit union.
4. Boost Your Retirement Savings
Don't let short-term fluctuations in the stock market keep you from seeing the bigger picture. When the value of stocks has dropped, this is actually the perfect time to boost your retirement savings. Cheap stocks allow you to realize higher returns in the long run.
Contact your credit union to open an account that fits your needs, like an individual retirement account. An investment professional with your credit union can help you determine what options are best for your age, income, and anticipated retirement date.
Don’t wait to explore your financial options. Clark County Credit Union is happy to work with our members, reviewing different options to ensure you’re covered now and in the future. Contact us at 702-228-2228 to learn more.