It certainly goes without saying that the Covid pandemic was shocking and caught most people off guard. So much of what happened over the past two years can only be described as unprecedented and unexpected. For the vast majority of people, Covid was hard on finances and business. If you made it out and were not financially impacted, consider yourself extremely fortunate!
For those of you that had your finances impacted, it’s time to look at what money lessons were learned and how to protect your financial health moving forward. I’m often asked what someone could have done differently to protect themselves. Here’s a list of ten ways to protect your financial wellness moving forward.
- Savings You never know when you need that cushion of money for job loss or other unexpected expenses. Save more than you ever thought possible. Having liquid cash available is vital to your financial health. Figuring out how to save when you are doing everything in your power to make ends meet can be overwhelming. My goal is to teach you tips and tricks on how to stretch your dollar to be able to meet this vital goal.
- Budget Knowing what you make and where that money goes is essential to your overall financial health. A working budget is not meant to be a financial crash diet, but rather a roadmap of what is coming in and where it is going. If you want to start budgeting and aren’t sure how to begin, download my budgeting book HERE
- Life insurance – During the pandemic, many families were financially devastated with the unexpected death of a loved one that passed without life insurance. There are life insurance plans that can fit most budgets. Term life is an excellent option where you can purchase larger amounts of life insurance for a lower cost than permanent life insurance. The best time to apply for this is when you are younger and healthy.
- Health insurance – There is absolutely NO reason that anyone that lives in the US should not have health insurance. The ACA (affordable care act) eliminated the preexisting clause for health insurance so no company can deny you coverage or charge you more for preexisting conditions. For those who have lower incomes, the price is adjusted accordingly in the marketplace. Many even have zero premium plans. No one “plans” for an illness, but put a plan in place for a financial safety net should you need medical care.
- Planning for retirement – For those that had jobs where their income was drastically reduced or eliminated during the pandemic, this is a glimpse into what retirement life looks like. Perhaps you haven’t put a plan in place and expect that you will work forever. Put a plan in place to make sure that you will be able to live once you are not able to work for income in the future. Do you have old 401k plans sitting around with your former employers? If you do, we need to talk about converting those plans into a pension, an income stream that you can’t outlive.
- Debt – Know how much you owe. Know your interest rates and what your monthly minimum payment is. Now is the time to get serious about debt free living. There is nothing wrong with seeking help with your debt! Please reach out to my team to assist you in reducing your debt. I have a dedicated team that will help you at no cost, you may contact them HERE
- Insure your paycheck – Chances are you have insurance on your cell phone, you insure your car and perhaps even your pets, but have you taken steps to insure your paycheck? Long term disability insurance is necessary as this is insurance for your ability to earn your income. Disability looks very different depending on your occupation. For a teacher, if they were to lose a finger, that would hardly impact their ability to continue teaching, however, if a surgeon were to lose a finger, they may not be able to continue to operate. This type of insurance is more affordable than most realize.
- Side hustle – Do you have a side hustle? A second job or source of income? The best way to grow your savings and pay for expenses that don’t quite fit your budget is to have a side hustle. I have written books on how to find and start a side hustle that works for you no matter your age, skills or education. You can find my books HERE
- Knowing how to access vital documents – During the pandemic, many were stunned when the person that took care of everything was unable to do so. People were left trying to find vital documents, wondering how to access online accounts, not sure which bills were paid or on autopay and the list continues. HERE is a digital organizer for your household to organize absolutely everything to ensure that your household continues to run smoothly under any and all circumstances.
- Power of attorney – A power of attorney is a legal document that allows someone to step in and act on your behalf if you are unable to do so. This can be for medical decisions as well as financial.
If you have not taken steps to implement these money lessons, it’s not too late to begin. Join my Financially Fabulous Facebook group for more advice on how to improve your financial wellness.