How Do You Financially Protect Yourself From Covid-19?

Because of the country’s concern about the spread of novel coronavirus, communities across the United States have been affected by the closure of enterprises, schools, activities, churches, etc. In many cases, many people are isolated. These requirements may be necessary, but they pose significant financial problems. Although many aspects of our personal financial life are not under our control at present, you can take some financial measures to protect yourself in the short term and long term.

Don’t sell out of fear.

If you see the stock market plummet in March, it is likely that your 401(k) will also fall. One thing you absolutely don’t want to do is sell any stock investment now because of fear. Selling stocks after a sharp fall in the market is the worst thing you can do to achieve your long-term financial goals. Remember, the goal of investment is to buy cheap and sell expensive. If you are panic selling, you are doing the opposite. When it comes to investing in stocks, this is not the time to make an emotional decision. The decline of the stock market is not the first, and may not be the last.

If the bill cannot be paid, please contact the lender.

If you can’t pay the bill until you lose your job and take a vacation, please contact the debt repayment person and tell them about your situation. They can exempt late fees, postpone partial payment, or even skip to help you. One of our tips is to change the payment date, other payment plan requirements and deferred payment requirements. I won’t hurt you if I ask!

Don’t overspend.

I’m sure you’ve heard all the stories about toilet paper and other necessities. You can store things, but don’t over prepare them to avoid being isolated for a period of time. Only buy reasonable ones for you and your family. In addition, don’t buy too much on credit. Overbuying with credit cards will not pay off.

What would you do if you lost your income?

Plans to help families affected by novel coronavirus will vary from state to state. Review the unemployment plan in your state and find the best one for you. This link can guide you to your state’s unemployment policy to see if you are eligible for any state or local assistance.( ).

Take advantage of this historic low interest rate

Our current loan cost is the lowest in history, so it is time to take advantage of this low interest rate. The most important example is the first mortgage. The interest rate of fixed rate mortgage is 3.47%, close to the lowest value in history, and some people may find that the interest rate is lower. This downward trend may exceed the mortgage theory. If you have high interest rate debt now, you will consider integrating debt through personal loans or other forms of loans, such as home equity loans or auto loans.

Beware of fraud attempts

Liars always look for opportunities in vulnerable or elderly adults, especially in such emergencies. People pay close attention to emails, short messages, and social media posts of novel coronavirus products with false information or wrong brand promotion. The Federal Trade Commission(FTC) provides some tips to help you and your family avoid crisis related fraud().

Social isolation of older persons may be a real problem. This may increase their chances of becoming scapegoats for liars. The elderly and their family members should know the most common types of fraud. This resource is helpful().

Increase the contingency fund.

In order to deal with emergencies, it is recommended that the cost should be at least 3-6 months. I know that in this case, most people do not consider strengthening their emergency fund, but at least they should consider it. If you are one of the lucky ones with uninterrupted income and work schedule, you may consider saving more actively in the emergency account. And if you have not received or designated a tax refund, this will be a good way to use it.

Look for ways to cut spending.

It is always wise to look for ways to control costs. Just make sure you don’t deny yourself too much. This is one of my favorite ways to decide how much I can reduce my expenses. Print recent bank and credit card invoices and highlight all expenses. Ask yourself. ; do I really need this? If the answer is no, please deduct it from the expenditure of next month. At present, some ordinary expenses may not be as practical as cable TV expense reduction or Hulu. If you are locked at home, you may need to be distracted.

This is my takeout.

It’s better to take a deep breath now. Don’t panic. We know that fear and fear will lead to irrational accidents, which will certainly lead to bad financial decisions. We live in an uncertain era, but we will get through all this. So make educated, sound financial decisions and remember to focus on what really matters – your health and the health of the people you care about.