Finance “Crisis-proof” your finances No doubt there were some investment geniuses in some part of the world who immediately understood the implications of coronavirus and prepared their portfolios and their finances accordingly. But, for the vast majority of us, the virus snuck up on us and the swiftness and ferocity of the economic turmoil that came along with it took us by surprise. And that left a good many of us in difficult financial circumstances. Some of us found that our finances weren’t prepared for the sudden, sharp shock that COVID-19 caused. We had too much debt. We didn’t have an emergency fund or stash of ready cash on hand. We had become used to spending freely and, when the time came to cut back expenses, it was tough. Some of us lost our jobs. And a tragic few of us had to deal with unexpected medical expenses. Don’t be caught off guard again. If you have the financial means, now is the time to “crisisproof ” your finances from a future event, should one occur (or more accurately, in the case of COVID-19, reoccur). Build up your emergency fund if you can − set aside several months of basic expenses (groceries, utilities, loan payments) and hold them in a high-interest savings account. Work up a basic monthly budget and get an understanding of how you could trim back expenses if you really had to. Get used to cooking at home instead of spending money dining out. Try to fix what you have, rather than shelling out for a brand-new whatever-it-is. We know, these are very simple back-to-basics defensive strategies − no doubt you’ve heard them many, many times before (including a few times in this magazine!). But, in times of volatility, it’s the simple things which you do to shore up your finances and protect your money that canmake the difference between financial crisis and financial survival. Financial tips Common-sense strategies that will help you batten down your day-to-day finances in the face of choppy economic seas. 32 | www.snowbirds.org
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