Financial Dos and Don’ts
With all this uncertainty, it’s easy to fall into a panic and wonder if there are some concrete steps you should be taking to save your finances. Here is practical finance do’s and don’ts to help maintain financial stability and peace of mind during this time. If you have questions or concerns, please reach out to us. We are available through phone, texting or email. (435) 723.3437 | info@elevatecu.com
Don’t: Panic by selling all of your investments.
Both seasoned investors and those naturally worried about their retirement accounts can find it nerve-racking to see their investments continuously drop in value. It can seem like a smart idea to sell out to spare further loss, but financial experts say otherwise. According to The Motley Fool, most sectors of the economy will recover quickly as soon as the outbreak clears.
Do: Trim your spending.
As the economy heads toward a probable recession, this can be an excellent time to get lifestyle inflation in check. Work raises, bonuses, and promotions are not given out as freely during a recession. Some people may even find themselves without a job. Trimming your discretionary spending now can be good practice for getting through the month on a smaller income.
Don’t: Put your money before your health.
Physical health should always take priority. If you feel unwell, showing any of the symptoms of the coronavirus — such as fever, coughing, and shortness of breath — call in sick. Do the same if you’ve been exposed to someone who has tested positive for COVID-19 in the past 14 days. As part of the government’s relief efforts, you’re entitled to two weeks of paid leave if you are unable to work because of the coronavirus.
Do: Consider a refinance.
As of March 20, the average interest rate on a 30-year fixed-rate mortgage is 3.0%, down from approximately 4.5% of a year ago. Refinancing an existing mortgage at this lower rate can potentially save homeowners several hundreds of dollars a month. That extra breathing room in a budget can be a real boost in case of salary cuts or even a layoff during a recession.
Find out more about rates and how to apply for a home loan today!
With a little bit of patience and these financial dos and don’ts, we will be able to handle this challenging time during the coronavirus outbreak. Our lobbies are temporarily closed, but our drive-throughs are open. Our online banking is always open.
