She Strengthens

Taking Control of Your Finances During Uncertain Times

As the world grapples with the COVID-19 pandemic, uncertainty reigns supreme. With so much up in the air, it’s natural to feel overwhelmed and powerless. But there are steps you can take to regain some control over your financial life.

Communicate with Your Employer

The federal government is working on passing the Coronavirus Response Act, which may offer some relief to employees. However, it’s essential to talk to your employer about their plans for handling work and payroll during this emergency. Find out if the payroll schedule is still in place, what plans they have for shutdowns, paid or unpaid time off, layoffs, and more. Freelancers should also check in with clients about upcoming assignments and invoices.

Create an Emergency Budget

Review your budget and identify areas where you can cut back until things return to normal. While it’s essential to support local businesses, you shouldn’t stretch your finances too thin. Look for ways to save money on bills, and consider pausing non-essential subscriptions. Be prepared for higher utility bills if you’re working from home.

Talk to Your Landlord or Mortgage Lender

Even if you can still afford your rent or mortgage, it’s crucial to know your options if you encounter financial difficulties in the coming weeks or months. The Federal Housing Finance Agency reminds borrowers about forbearance, which allows you to postpone mortgage payments during financial hardship. However, keep in mind that interest will still accrue, making it a short-term solution with long-term consequences. Renters should check if their city has implemented an eviction ban during the pandemic.

Prioritize Your Bill Payments

If you’re struggling to pay bills, prioritize your payments. Many bill providers are implementing emergency policies to help customers, including utility companies, cable and internet service providers, credit card issuers, and student loan servicers. Research your providers’ policies and reach out to them if you’re unsure. Cancel automatic bill payments for providers that have implemented relief measures to avoid overdraft fees.

Avoid Stress Spending

When stuck at home, it’s easy to fall into the trap of online shopping. However, this can lead to impulsive purchases and drain your cash reserves. Be discerning with your spending, and avoid making rash investment decisions. Hold onto your cash and try not to overspend.

Get a Refund on Travel

If you have travel plans within the next 60 days, consider canceling them. Airlines, Airbnb, and hotels are implementing flexible cancellation policies. If you’ve been charged for canceling due to COVID-19, try communicating with companies via Twitter or disputing the charge with your credit card company.

Stay Organized

Filter and label emails from companies about COVID-19 policies into a separate folder in your email account. This will help you reference important information quickly and easily.

By taking these steps, you can regain some control over your finances during these uncertain times. Remember to stay informed, prioritize your spending, and avoid impulsive decisions.