Money tips for tumultuous times
It’s a little scary for everyone right now. Between international conflicts, uncertainty around the job market, and planning for the holidays, money worries are keeping people up at night. In times like this, it's more important than ever to take steps towards securing your financial well-being (and saving money). Here are the three strategic money moves I recommend starting with, to help you feel prepared to navigate these turbulent times:
1) Build an Emergency Fund
It’s the most common advice you hear because it’s the most important. I’d recommend either a totally-liquid high-yield savings account (meaning one without a surrender charge) or a money market account that you can tap into when unforeseen expenses or emergencies arise.
Aim to save 3-6 months of living expenses in your emergency fund. This safety net can help you cover any unexpected financial setbacks without resorting to high-interest debt. If you can’t imagine squirreling away that much money, have the humility to start small, and save $20 per paycheck, for example, in that account. Every journey starts with one tiny step.
2) Reduce Non-Essential Expenses
When faced with economic uncertainty, it’s time to scrutinize your spending habits and cut down where you can. This can help you redirect more money toward your emergency fund and savings goals. Consider:
Creating a budget to track your income and expenses, identifying areas where you can cut back.
Reducing discretionary spending on items like dining out, entertainment, or shopping for non-essential items (like flowers at the grocery store, for example).
Negotiating lower medical bills or monthly payments for services like cable, internet, or insurance.
3) Diversify Your Investments
It’s natural to feel apprehensive about investing when the market is in flux. However, maintaining a well-balanced and diversified investment portfolio is crucial for your long-term financial health. Diversification helps spread risk and potentially protect your assets. Consider these strategies:
Consult with a financial advisor to ensure your investment portfolio aligns with your long-term goals and risk tolerance.
Look into low-cost index funds as a way to diversify without the need for active stock picking.
Don’t let the market scare you into selling all your investments and going totally to cash - it’s your decision, but staying the course is usually a good bet.
For personalized financial guidance and a complimentary financial review, I invite you to schedule a consultation with me today. Together, we can create a financial plan tailored to your unique needs and goals, ensuring a more secure and prosperous future. Contact me now to get started on your path to financial well-being.
