How To Budget With Confidence in Caotic Times
Don't Freak Out!
Hey EveryDollar budgeter,
You’ve seen the news reports, press conferences and endless social posts about the coronavirus (COVID-19). All this information is creating mass hysteria—but there are still things you can control.
While we’re not in the business of dishing out medical advice, we can offer some commonsense approaches to handling your money right now. Here’s what you should do:
It’s important to gain the right perspective about everything. And you can’t do that if you’re making decisions based on fear. Give yourself a moment to make some clearheaded choices with your money. You. Got. This.
2. Get in your budget and take care of your Four Walls: food, utilities, shelter and transportation.
For now, cut out all unnecessary expenses and extras. Go ahead and plan out three or four weeks, just in case. Be prepared!
3. Pause your debt snowball.
If you’re paying off debt, stop those extra payments. Just pay the minimums for now so you can take care of your Four Walls and pile up cash.
Just for now, you need to focus on taking care of your family’s needs.
4. If you have an emergency fund, dip into it—but only if you absolutely need to.
Work on your budget first (as a couple if you’re married), then decide if you need to pull money out of your emergency fund. By the way, that’s what it’s there for: emergencies!
5. Don’t cash out your retirement.
No one jumps off a roller coaster in the middle of the ride. That’s how you get hurt! Markets go up and down in the short term. But you’re in it for the long haul—and your money is safer right where it is.
6. Use common sense and kindness.
Wash your hands. Take care of your neighbors. Don’t put yourself or your family at risk, especially if you or they have any kind of health condition already.
You can turn this chaos into confidence. Learn how in this quick video from money expert and bestselling author Rachel Cruze. (Video link)
Listen. We believe in you. Seriously. You’re going to be okay. While you can’t control what happens in the world, you can control what happens with your money. Keep budgeting and doing the right things. Yes, times look tough. But you’re tougher.