The pandemic situation has left every individual on the planet startled to the core. People have been affected emotionally and physically, and their financial status has been impacted to an unimaginable extent. Even if the recovery rate seems strong, there is a lot of insecurity lingering around the block on the monetary front. So, looking at the sufferings, the ones living in safer bubbles are streamlining their resources and trying to make the best of the existing ones.
Financial planning, which people always used as a road map to achieve their monetary goals, both in the short-term and long run, is now becoming the shield for the future. It doesn’t matter if a person is earning a few hundred bucks or a million dollars; getting towards the financially secure side is what everyone has started to strive for. You cannot, of course, guard yourself against every crisis, but you can surely do your best to prepare for them. And, annual financial planning gives you that privilege.
You review your goals, update them, and review your progress since last year and amend them to steer away, or at least stay firm on your financial footing. If you wish to learn to live comfortably, reduce your money troubles, and save well for retirement post-COVID-19 and economic disturbances, this article here is to help you.
Reset Your Financial Goals
Your financial plan is entirely guided by the financial objectives you set. How are you going to cope with pandemic loss? Where do you see yourself ten years down the line? Is marriage or kids on the card? Do you want to own a car or house? How do you want your retirement age to be? Once you do your revision with these goals, you can then take the next steps.
Pay Off Your Debts
A crucial aspect of financial planning is paying your ‘stressful’ high-interest debts, including credit card balances and title loans, as soon as possible. Without doing so, you may keep eating up a significant portion of your paycheck every month and end up borrowing more to pay for older loans. So, hold back on other expenses and pay off your credit card balances in full. Try to keep debt as a last resort.
Cover Your Contingencies
It is high time that each one of us sees the uncertainty attached to our lives and properties. Even the slightest of risk can lead to loss of income in no time, dragging you and your family into financial jeopardy. Thus, to avoid any financial or medical emergency becoming a disaster, you must shock-proof your budget. Save, invest, and get yourself insured well.
Consider Your Investment Opportunities
Investing may seem like a thing for the super-rich and a difficult road to navigate for average individuals, but it is not. To start with, you can invest $50 or $100 and let it grow before you decide to put in $1000. Just like this, you can build your investment portfolio and distribute your money amongst different asset classes.
Create Your Estate Plans
You may not have thought about estate planning till now, but it is essential so that your assets are managed and distributed as desired after you are gone. Your estate plan would dictate the list of all assets, the will, and its hassle-free accessibility for beneficiaries. If interested, take consultation from an experienced financial planner; he/she can set things up correctly.
Prepare for Your Retirement
When you are earning, you manage your expenses through your salary, but what about when you stop earning? Well, your savings investment will be your biggest support then. So, even if the retirement age feels like a world away, especially for those in their 20s and 30s, you better plan now to enjoy a prosperous retirement phase later.