How COVID-19 is Changing Your Wants & Needs

How COVID-19 is Changing Your Wants & Needs

There’s nothing like an economic crisis to inspire you to reevaluate how you’re spending money.

Don’t waste this crisis.

If you make some choices now, you can position yourself to come out financially stronger. This is especially important if you’ve had your income cut or are bracing for a pay cut.

Ask yourself: What can I cut to temporarily hoard cash? Your initial reaction may be that there’s nothing to cut, but let’s take a closer look.

Start with the optional. The money you spend on entertainment has probably been drastically reduced in quarantine. But you can also consider whether you can cancel or suspend memberships.

When it comes to “needs,” the key is to negotiate and communicate. Contact your car insurance company, your landlord or your mortgage company and see what arrangements can be made. Don’t just stop paying bills. Making the effort can go a long way. Also reach out to utilities, your car loan company, credit cards and student loans. In many cases, there are ways to negotiate your payments. When you start digging, you can always find things to cut.

Ready to learn more about our Retirement Habits? Check out these stories to start building your own habits:

Habit #1: Pay Attention

Habit #2: Avoid Bad Debt

Habit #3: Live Beneath Your Means

Habit #4: Save 16%