Smart Money Moves to Make in Uncertain Times
Feeling overwhelmed by unpredictable economic conditions? Take control by making smart moves to strengthen your financial security.
Businesses continue to face challenges and unemployment is on the rise as we look for ways to adapt and find a new normal. As families deal with financial setbacks, it’s easy to focus on the negative. However, now is the time to take advantage of current opportunities and make smart moves with your money. Even when times are tough, it’s wise to look beyond the current situation for ways to protect your future.
Protect Your Financial Future
You can work on strengthening your financial security so you’re ready for whatever happens next. Here are some steps you can take to protect your money in uncertain times:
Maintain a long-term outlook. Wild fluctuations in the stock market may drive investors to sell in a panic or make drastic changes to their portfolios. However, overreacting to the news or trying to time the market can backfire in the long run. Instead, staying the course during periods of stock market volatility can help you weather the storm without compromising your long-term strategy.
Plan for the unexpected. Having conversations about estate planning can be uncomfortable, but it can protect your loved ones and provide peace of mind. If your estate is uncomplicated, you can draw up a simple will using online software. If you own a family business or have questions about protecting your assets or handling unique family dynamics, you may benefit from a trust or other estate-planning tools. Purchasing life insurance can also help protect your loved ones and provide financial security.
Rework your budget. Reviewing your monthly income and expenses can help you make smart moves to streamline your budget. Look for ways to cut back on discretionary spending and plug spending leaks. If you’re spending more time at home, you might spend less on transportation and going out, but you may need to budget more for higher grocery bills and other essentials. Use online budgeting tools to track your spending in different categories and set up monthly limits for spending.
Use credit wisely. When money’s tight, it’s tempting to use credit cards to get by for a few months. However, charging up high levels of debt can damage your credit score, making it harder or more expensive to borrow money in the future. If you rely on credit cards or other loans in a financial pinch, have a plan ready to repay the debt and keep up with minimum payments (or more) each month, if possible.
Focus on emergency savings. Having an emergency fund can be a lifesaver. With three to six months’ worth of expenses saved up for emergencies, you could avoid racking up credit card debt or cashing out retirement accounts to pay the bills. Think about how you might stretch your emergency savings to last for a longer period of time, if needed.
Connect with an Amegy banker. Whatever financial challenges you’re dealing with today, we’re ready to help you find solutions. Learn more about financial planning and wealth management and connect with a banker at Amegy Bank.