Essential Money Moves To Make In Uncertain Times
Essential Money Moves To Make In Uncertain Times
Slow your body and your mind down. Literally slow your motions, take 5 minutes to meditate, or practice grounding - feeling your feet on the floor, your body in your chair, counting your breathes.
Then, as you let your money anxieties come to the surface, try to look at them without judgment.
Is spending mental energy berating yourself for past decisions helpful? Could you really have known this crisis was going to happen? What would you tell a friend or your child if they told you they thought they’d never be able to get ahead?
The next five money moves in this article will be examples of those small steps, but when you’re feeling overwhelmed, break things down even further. What can you do in the next 5 minutes? Those little bouts of progress will help stave off anxiety.
2. Check In On Your Emergency Fund
Emergency funds are one of those core pieces of money advice that everyone manages to learn. And it’s for situations exactly like this one.
Yet, the Federal Reserve’s Report on Economic Well-Being showed a divide in how well Americans have been able to prepare. About half of Americans reported they had three months of expenses in savings for emergencies, in line with a general benchmark for financial health. However, about 40% said they would struggle to cover a $400 expense in cash.
Whether or not you have savings, now is the time to check in on how far your money can stretch.
If You Currently Have An Emergency Fund
How much do you have saved? How does that compare to your monthly expenses?
Generally, it’s good practice to have three to six months of cash saved for emergencies. Job loss, medical issues, major problems around the house. Having money saved up makes things easier.
But how you define three to six months of savings in good times could mean you have more money to stretch when that emergency arises. If that savings was based on a bloated budget, you may have space to cut back for a while and stretch your savings even further.
Get clear on what you have, where it is, and when and how you can tap it if you need it.
If You Don’t Have An Emergency Fund
First off, remember to connect with your mindset and give yourself grace. You can’t go back and change the past, saving up months or years ago. But you do still have options now.
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