The current COVID-19 pandemic has had a major impact on the lives of Americans. It has not only proven to be deadly to their health but also their personal finances. During the lockdown, millions of Americans lost their jobs and filed for unemployment. Most of them lost their only source of income and others are still finding it difficult to stay afloat financially. The U.S. has become the epicenter of the pandemic with around 7.22 million cases reported and 206k deaths. California, Texas, and Florida have reported the highest numbers of cases. The last thing Americans expected to do when the coronavirus started spreading around the world, was to worry about learning how to manage money during a pandemic.
Businessman and financial realist, Ronnie F. Lee writes about important principles of good money management in his latest book, Know Money No Problem 978-1952263583. The tips and strategies, which Lee provides can be extremely useful and effective during a crisis like this. Every American has been forced to readjust their budgets to a certain degree during COVID-19. Getting familiar with different money management skills and applying them to your finances is always a smart move. But at a time like this, it has become more of a necessity. The National Endowment for Financial Education shares several guiding principles for managing your money during a crisis, here is what they had to say:
· Continue saving. Events can and will happen. Keep saving in anticipation of future needs. You also might create auto-transfers to your savings account so that your savings continue to grow without much effort on your part.
· Avoid new debt if possible. Be mindful of your borrowing and continue to pay down debts as much as possible.
· Invest in yourself. Prioritize your current and future needs. If you deplete your own savings and earnings, then you will not be able to help anyone else.
· Protect what you have. Protect yourself and those who depend on you with sound advice and guidance. Insurance and emergency savings can be very helpful in a crisis.
· Control your spending. Transitions can often put your mindset into a “whatever it takes” approach. If you feel out of control or like you aren’t thinking clearly, ask someone you trust to be your second opinion before making big spending decisions. It’s OK to ask if you need help managing bill payments and daily spending. You might automate payments to lessen your stress.
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