Coronavirus and Your Money

Just a few short months ago, a huge portion of Americans received a Stimulus payment from the government. Having spoke to numerous friends, family members, and clients, it does not seem that many have anything to “show for it” only months later. But this seems to ring a bell for you reading this, doesn’t it? It sounds so similar to Tax Refund time. The biggest difference between the stimulus check and tax refund check is that most people can estimate on a year-to-year basis what they can expect to get in the Spring time. With estimating what they will receive, they are also estimating what they will spend it on… which brings us to Money Management 101.

It is not meant to judge anyone on their spending habits, whether good or bad, but it’s simply to help guide those that may need some extra support. When really digging into Money Management, spending habits are a HUGE component in how we manage our money overall. During this pandemic, some of my clients truly saved the stimulus payment and figured to stash it away since it was so unexpected. Then there were others who simply bought things and used it up within days. For those that continued to receive a paycheck/unemployment check, it may have made more sense to save rather than spend. If you already have a form of income coming in, the stimulus payment was really similar to a bonus check.

What I am here to show you is that it’s okay to splurge every now and then, but it’s crucial to make sure you can do so first. Some questions to ask yourself when trying to make a decision of spending vs saving:

1. Do I have any money saved for emergencies or the unexpected?– If your answer is immediately no, then it may not be a good time for you to splurge and spend right away. Remember, saving for the unexpected will always benefit not just your pocket, but your mental and emotional health as well. You won’t have to stress about how to get a hold of the funds you need, because you may just have saved a portion or the entire amount of what you are in dire need of.
2. Do I really need this item(s) I am looking to purchase?– If you emphasize the word NEED when asking yourself this, the answer should come easily. Most times, we don’t really need what we are looking to buy, we just simply WANT it. Which brings me to a huge point of Money Management, wants vs needs. If it’s an item you are “on the fence” about, let it sit at the store for a few days, then ask yourself how bad do you really need it. Of course there may be times you genuinely need something, and that is fine, but we really want to hone in on the times that we just don’t need it.
3. Can I find a cheaper alternative?– Is there a discount store or store online that offers what you want at a cheaper price? If you really are deciding to make the purchase, make sure you have exhausted all options, especially for larger purchases.

If you ever find yourself wondering how to start a savings plan, or even begin the planning process, reaching out to financial counselors can really help. Personally, I taught myself having been in the Banking Industry for nearly 10 years, but that isn’t always something that comes easy. Now having two certifications for financial education, I feel confident in helping those around me make sound decisions, which is why I chose to blog about pointers and tips as well. If you ever have any questions, please feel free to reach out. ❤