Wealth Management in the COVID-19 Pandemic
It’s no secret that the COVID-19 pandemic has affected the financial health of many Americans, including here in our Central New York community. Unemployment assistance has been difficult, while many businesses remain uncertain about rehiring furloughed workers. However, with the help of HighPoint Advisors’ trusted wealth management professionals and proper budgeting during COVID-19, you can stay on track and avoid financial hardship.
Budgeting during COVID-19
The COVID-19 pandemic is a massive lifestyle-changer. As people spend more time at home, everything changes – including finances. You may be earning less due to lost employment or reduced wages or even saving money by working from home. Either way, re-assessing your budget can tell you how your expenses have changed and what your new needs might be.
With a few simple tips for budgeting during COVID-19, you can avoid financial shortfalls and keep working toward your goals. These include:
- Track expenses: You need to know how much you spend each month before you can set a workable budget.
- Cut spending you won’t notice: Cancel subscription services you don’t use or choose a less-expensive phone plan.
- Revisit discretionary spending: Purchases like restaurant takeout, new clothes, and entertainment can give us a boost when times are hard, but also drain our budgets.
- Put payments on pause: You may be eligible to postpone mortgage, student loan, vehicle, and credit card payments due to financial hardships related to COVID-19. Reach out to creditors to see how you can minimize payments during these difficult times.
Take Advantage of Emergency Funds
Every household should have emergency savings to cover three to six months of expenses. If you have an emergency fund, now may be the time to use it. If you’ve already dipped into these savings, check in with a financial advisor. They can help you stretch available funds and look for alternative ways to have cash on hand if you’ve lost one or more sources of income.
You should also take the federal stimulus package into account. The stimulus package offers eligible individuals an additional $600 per week for up to four months to supplement state unemployment benefits, and eligibility has been expanded to include self-employed individuals and independent contractors. Don’t be afraid to apply for government aid if you need it.
Meet with your Financial Advisor
As a result of COVID-19, markets are in flux and may remain so for some time. These changes can cause anxiety, and you may be tempted to stop investing altogether or make big changes. Yet now more than ever it’s best to be cautious. Making choices on impulse or out of panic can derail your wealth management strategy for years to come.
Instead, discuss your concerns and any changes to your finances with a financial advisor. They can address your worries and suggest strategies to work towards maintaining your financial well-being. This is also a great time to revisit your long-term financial goals. If the pandemic interfered with plans for retirement, a new home, or saving for your child’s education, your financial advisor can collaborate with you to find strategies. This could mean delaying plans, adjusting your purchase budgets, or simply reshaping other priorities.
Learn More about Wealth Management and COVID-19
The COVID-19 pandemic requires many of us in the Syracuse area and throughout Central NY to re-evaluate our financial futures. Fortunately, you don’t have to weather these challenging times alone. If you need assistance with wealth management and budgeting during COVID-19, contact HighPoint Advisors, LLC today. Our team can help you develop a wealth management strategy and achieve a brighter financial future. To schedule a consultation at our East Syracuse office, please call 315-627-0474.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.