Did You Listen to Your Financial Advisor?
I know it might be a bit late for this current crisis in your life but when the #COVID-19 subsides I strongly advise everyone to look at this as just another unforeseen happening. Then think about and do something about the advice that banks and advisors have been giving for decades. Create an emergency fund for the possibility of six months or better with no income.
This was usually a guard against potential job loss but it applies equally here. With all the shutdowns yet to occur, you might be laid off. If not then for sure you must have seen people stocking up on - in some cases hoarding - certain things from the supermarket. Stocking up means buying extra - with what? If you immediately thought about your credit card you are in trouble.
Many years ago I was a financial advisor and for sure gave the same advice. Most people ignored it. Thank goodness I followed it myself. As just mentioned, this does not mean increasing your credit or credit card debt. That way lays disaster. You are adding to the first crisis or problem with a second one - throwing fat onto the fire.
The usual excuse was that nobody could afford it. I once wrote an article pointing out places most people could find extra cash if they had the willpower, not the means.
There are lots of lists out there of what things to stock up on for an emergency - essentially the basics of life so I won't repeat them here. Cash or available funds however are also one of them.
So here are some of those items I once wrote about. Just remember your #CORONA experience when you ask yourself if any of the following are VITAL and CRITICAL to your life.
Can you at least cut down on (and put into your emergency fund):
1. Beer, wine, or other beverage?
2. Your monthly TV or entertainment package?
3. The need to have the newest, biggest TV to watch nightly?
4. Meat - one of the most costly forms of food. Buy cheaper cuts and learn how to cook them.
5. Going to movies?
6. The latest and greatest phones for both you and your kids?
7. New clothes or fashions?
8. A new car? Buy smaller and pre-owned for a couple of years. I always do this.
9. Vacations? Do a staycation once or twice and add a bundle to your fund.
10. Reno's and furnishings. This is very rarely vital. The same applies to the size of your home.
While you are at it, involve your kids in the discussions. It will be a great life lesson and a good test for your parenting ability.
#thebrewsterblock
1 comment:
Staying at home!
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