Personal Finance Reassessment Tactics for the COVID-19 Era
Americans are losing jobs and becoming evicted in record numbers. If anything is certain, it is that life, relative to personal finances, is going to be rough for the foreseeable future.
Maybe it is time for you to begin reassessing how you can generate money in alternative ways.
Create a Hard-to-Access Savings Account
About 70% of Americans have less than $1,000 currently saved in their savings account.
Another 30% of Americans don’t have a savings account or have nothing saved in it.
In this tumultuous economic era, it is imperative that you have money saved for an emergency.
Also, it makes no sense to open a savings account if you just plan to use that money as soon as you deposit it.
Open an interest-generating savings account that is separate from your main bank account. You could even open a new savings account at another bank.
Also, make sure this savings account is not linked to a debit card.
You can also open an online savings account at an internet-only bank as well. With an internet bank, you must transfer from an existing account or mail in a money order to deposit money. That is too much effort to undertake to waste on a savings account you will just raid later.
After you create your savings account, don’t touch the money. Brainstorm how to make more money and be comforted by your growing nest egg.
Everyone needs money now. However, get into the habit of saving money now so you can have money in the future when you may really need it.
Investing is something that you have to learn about yourself.
Learn how the stock market works and learn how to recognize the value in stocks others don’t recognize yet.
Also, keep in mind that it can take years or decades to get back a return on investment. There are no overnight millionaires when it comes to stock investing, especially for everyday people.
Utilize investing strategies as a long-term plan to generate additional income, not as a get rich quick scheme.
Think creatively when you begin investing. You can invest in gold ore refineries, orange juice, or cryptocurrencies. Just don’t invest on a whim, do some research.
Unclaimed Monies and Properties
In many states, there are public announcements about unclaimed monies and properties held by state and federal governments waiting to be claimed.
Have you worked multiple jobs in multiples states in the past? Are you sure you don’t have an inheritance bequeathed upon you by a relative in another state?
Did you ever open a bank account or make an investment in the past you’ve forgotten about? You may have unclaimed money waiting for you.
Relative to your personal life circumstances, there may be many situations where it is plausible that you may have unclaimed money waiting for you.
You can check the website for the National Association of Unclaimed Property Administrators to state.
Also, check the unclaimed money and property websites for each state you have ever lived in.
Don’t pay other people to look for unclaimed monies and properties in your stead. That is a waste of money for something you can do easily for yourself.
Start Planning Now
If anything is true in 2020, anything is possible.
There is no hope in despair. Reassess your finances and start making contingency plans today.
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.