Protecting your Finances During Uncertain Times
With the ongoing coronavirus/COVID-19 reality we are all suddenly facing, each day brings more uncertainty and anxiety about the state of our economy. Below are some do’s and don’ts to consider to help you maintain financial stability and peace of mind during this time.
Don’t sell all your investments
All investors, whether seasoned with robust portfolios or those with small retirement accounts, can find it nerve-racking to see their investments drop in value so drastically each day. You might consider selling to spare investments from further loss, but financial experts advise against this. According to experts, most sectors of the economy will likely recover quickly as soon as the outbreak pandemonium clears. While the global and national economy may not bounce back for a while, experts are hopeful that individual business sectors will recover just as they did with past events like 9/11.
Trim your spending
Now is a great time to start curbing your spending as much as you can and ensure you’re saving. We have enjoyed a thriving economy for many years and many people have enjoyed the benefits that come with it. As with any recession, work bonuses, raises and promotions might be nonexistent. Trimming discretionary spending now can be good practice for making it through the coming months on a smaller income and ensure you’re saving for those worse case scenarios, like the loss of a job, should they become reality.
Prioritize your health
Physical health should always take priority over financial health. If you’re feeling unwell, and especially if you’re exhibiting any of the symptoms of the coronavirus, please ensure you are staying home and not putting others at risk. Employers now more than ever, understand the impact one sick person can make to their entire workforce. You should also do the same if you’ve been exposed to someone who has tested positive for COVID-19 in the past 14 days. Don’t let financial considerations come before your health and the health of those you come into contact with each day.
Don’t panic by withdrawing all your funds
When people are faced with the unknown like this, sometimes they make rash decisions and unnecessary actions. Withdrawing all of your money from your accounts is an unnecessary and rash decision. Trusted financial institutions are the safest place for your money to stay. Having large amounts of cash on hand can also be a safety concern and make you a target.
San Diego County Credit Union has been around for more than 80 years and is financially strong. We are well-capitalized and due to prudent operational practices have fared better than most through the economic downturn in 2008. SDCCU is prepared for economic downturns such as this and will get through this as we did in past recessions. As always, your funds are also protected and insured up to $250,000 by the National Credit Union Association. For more details visit ncua.gov.
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