You can’t go anywhere without seeing or hearing about the Coronavirus *cardi b voice*. It’s affecting everybody in different way. Let’s discuss the effects and lessons we’ve learned so far.
Your 401k
If you have looked at your 401k lately, you’ve probably noticed a dramatic decrease in your funds. Mine is currently down 29%…eesh. If you are young and no where near retirement, don’t panic! Don’t take your money out. The market will rebound, just be patient and try not to log into your account lol.
Lesson: You should have more than one option for retirement. Don’t just depending on a 401k, roth, stocks, etc. The more accounts the better! The phrase “Don’t put all your eggs in one basket” definitely applies here.
Your Job
Thousands of people are seeing their hours cut or facing layoffs. (Prayers up for everyone affected) Unfortunately, there will most likely be more to come. Different industries are being affected and forced to change the way they do business. Many restaurants are converting to delivery only, so now is a great time to make extra money by delivering.
Lesson: Have an emergency fund of at LEAST 3 months of expenses. A lot of Americans live paycheck to paycheck because we don’t do a good job of managing our money.
Lesson #2: Have multiple streams of incomes. This is one of my biggest focuses this year. No matter what industry you work in, you always need a backup plan. With technology advancements and improvements, jobs are constantly being replaced.
Lesson #3: If you do have your own business, be flexible! Delivery options have been around forever, but there are so many restaurants that never been interested in it. Now they are forced to figure it out when the demand is sky high. They are struggling during an already hard time because they didn’t want to adapt with the times until they were forced.
*Key points*
- Don’t panic! Panic leads to bad decisions. Leave your 401k and other investments alone! Consult a financial adviser before making rash decisions.
- Save, save, save! With job uncertainty, we have to be prepared. 3-6 months of expenses is a great goal but do what’s right for you and your family.
- Be kind to others! The coronavirus is affecting more and more people. You never know what people are going through. Be considerate when at the grocery store and make sure to say thank you to the “essential workers” working in stores and hospitals.
