Financial emergencies can happen to anyone especially in times of a pandemic. As the COVID-19 disease sweeps across the globe, many cities are impacted by the temporary closure of businesses, leaving many people without a job, whether temporary or long-term. Even if you’re still employed, your wages may be reduced to keep the business going.

If you’re worried that the spread of COVID-19 may impact your personal finances, here’s a checklist that you can use to ensure you stay financially sound.

Stay on top of your credit

Routinely check your credit reports to make sure your agreements with your lender are accurately fulfilled. You can also check your banking report and checking account history. 

If you feel you won’t be able to make payments on time, contact your lenders to explain your situation. Don’t worry though because many lenders typically are willing to provide forbearance, loan extensions and flexibilities in payment in times of natural disasters and emergencies, especially one like we’re in now. 

Secure an emergency fund

If anything, this ongoing pandemic is a clear reminder of the importance of a secure emergency fund. Are you prepared for an unforeseen layoff? Or worse, a COVID-19 diagnosis?

The size of your emergency fund will be dependent on your needs. Are you currently tied to a mortgage? Do you have a serious medical condition? Your contingency fund could start from $1,000, and then build up to three to six months’ worth of living expenses.

If you don’t have an existing emergency fund, here’s how you can build one:

1. Calculate the total amount that you need to save.
2. Set a monthly savings goal. Make saving a regular habit to make the task less daunting.
3. Move money into your savings account automatically. So your monthly savings goal is taken care of without even having to check your account.
4. Assess and adjust your contributions (if needed).

If the unfortunate event of losing your job happens, you can look at your state’s unemployment policies to identify possible options.

Get professional help if you’re in financial trouble

If you feel you may not be able to make ends meet, you can call a financial planner or an accredited credit counselor to help you manage your finances. 

A professional financial advisor will give you an informed and objective financial advice, excluding emotion from the decision. They will use their knowledge and expertise to reevaluate your current situation and plan accordingly.

Or if you’re just too busy with your business, hire a financial planner to help you manage your finances.

Don’t get overboard on cash

Having too much cash on hand can be risky. Not only is the money in your house uninsured by the Federal Government, but you’re also not earning interest off of it. In the long-term, you could be possibly missing out on a huge return.

Also, the money at your home is at risk of being stolen, or worse, lost forever if something bad happens. For example, you have $200,000 in your cabinet and your house burns down, there might be limits on what your insurance can cover. 

When it comes to the amount of cash to withdraw, it will depend on your current needs. For your peace of mind, having an extra $100 or $200 in your wallet will be enough.

These measures should help you protect yourself or a loved one financially in times of a global crisis. While the current uncertainty can be unnerving, stay calm and only take actions that will protect your health and financial well-being. 

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