Paul Haarman explains during the past few years, financial wellness as a concept is fast gaining popularity. With the current economic downturn triggered by the COVID-19 pandemic, you need to manage your finances well so that you are in a position to deal effectively with all cash flow issues and other financial emergencies. Globally, financial wellness is becoming an integral part of formal education for young adults across colleges and universities. The younger generation is being trained and equipped with effective ways of managing student loans. And managing their overall funds so that they could step into their professional career with confidence and determination to ensure financial wellness and peace of mind.
During the COVID-19 pandemic, finances seem to be of utmost concern because of the uncertain economic scenario. People are losing their jobs, there are ongoing pay cuts, and as a result, there is no job security. As per https://www.cnbc.com, more than 40 percent of the Americans are concerned about having inadequate money saved for navigating the economic crisis triggered by COVID-19. This global pandemic has hit the United States real hard. We know that almost nine out of every ten people in the U.S.A. are worried and stressed because of money matters.
However, thanks to some smart tips from expert financial professionals, you could boost or maintain your finances despite dire circumstances.
Focus on Being Proactive
Paul Haarman says you should focus on being proactive while dealing with this crisis. We know that Americans have already started making concerted efforts toward taking control over their finances. If statistics were to be believe 75 percent of the people poll admit to taking effective steps for adjusting their personal finances. Because of the coronavirus outbreak and its ongoing onslaught. More than two out of five people or roughly 42 percent admitted to cutting monthly expenses and almost 26 percent of them have deferred all major financial decisions.
Keep Track of All Your Savings
Paul Haarman says you must have sound knowledge of your financial condition. Since that should go a long way in determining and defining your financial goals for the future. You must think about listing all your financial assets. Focus on maintaining perfect financial records. This could be beneficial in identifying funds that could divert toward immediate use in the event of a crisis or emergency. Prepare a statement of all your liabilities and assets and accurately categorize them in terms of your financial goals. Then consider classifying your existing assets between capital assets and liquid assets.
Take care of bank loans and other inevitable commitments. List all the details relating to different insurance policies. Keep all your nominee details updated in terms of your will. You need to keep a close friend or trusted family member informed about all your insurance policies and financial records.
Go About Downsizing and Keep Focusing On Your Essentials
In crisis situations such as COVID-19. It should be your utmost priority to stretch your dollars to the extent possible and stay safe. Your focus must necessarily be on arranging for the essentials like housing, food, medicines, core utilities, and even transportation. It necessarily implies that you must focus your attention on stopping or slashing non-essential spending for now.
When you implement the above-discussed financial wellness tips. you would be very much on the road to financial stability and overall wellness.