While we all know that the pandemic of 2020 has caused a great deal of grief this year, we have managed to carry on in spite of these challenges. While there are numerous ways in which Americans have experienced changes, you have likely seen your finances affected in one of the following ways:
a) You have greatly been affected by economic changes
b) Have been somewhat or moderately affected by economic changes
c) Experienced little or no negative effects on your finances
d) Experienced an increase in income/and or assets since the start of the pandemic
If you are in the last category, then congrats to you as you have managed to survive these unparalleled times of uncertainty. With all that’s going on, being able to maintain your financial footing, and thrive is certainly still top of mind. If you are fortunate enough to have made gains during these times, it does not exempt you from having some concern over the fiscal impact of the Covid-19 pandemic. The economy has been shaken up with markets experiencing unprecedented shocks that have sent panic across households.
So you still have funds, and perhaps your past investment decisions have afforded you gains. The question is what can you do to protect your assets? Here we’ll take a look at the best ways to maintain your earnings and set yourself up for success for the rest of the year and beyond.
How to 2020 Proof your Income
Don’t panic spend
The stress of this year is something that has been discussed times-over across numerous media outlets and the innerwebs. As someone who has long held a strong interest in global current events, and the important news of the day, this is the first year where I have seriously contemplated a television and internet—albeit not entirely feasible—fast. The incessant newsfeed of doomsday rhetoric has repelled many and has resulted in an effectual media ad nauseum of sorts. Because of this, you, or someone you know, may have found themselves much more stressed and tired, and irritated than usual. As we often find comfort in self-soothing measures, the list of excessive expenditures on food, clothing, and other comforting items has no-doubt increased.
If you have found yourself spending more money on items then you normally do, you are not alone. A recent report by the Census Bureau shows that nonretail spending in August (namely online mega-merchants such as Amazon) was up 22. 4 percent from the same time last year. Americans have been one-click shipping their savings away on everything from necessities such as the ever unattainable toilet paper and hand sanitizer, to pet accessories for their newly adopted pets.
However, it is important to not get yourself caught up in panic and stress spending your money. While again, this is likely a coping mechanism that has resulted from the pandemic, it is best to try to direct your energies and finances to other more productive activities. This can include taking some time to learn a new skill, such as learning a language, or instrument that you have always wanted to play. You could also see if you could use any extra money to take on that remodeling project that you have been putting off so that you can have a more peaceful environment at home. See where you can cut excess subscription costs or eliminate unused services. You can even get extra gains by going through your phone and deleting any unused app subscriptions that you may still be getting charged for but don’t use. There are plenty of alternative and smarter ways to spend your money if you just look.
Invest! Invest! Invest!
At Save The Bucks we are all about a good investment, and while things have certainly been unpredictable this year, that should not deter you from investing your extra money into stocks and funds that you feel strongly about. Investing 101 tells us that you should invest during turbulent times so that you can reap recovery gains when the gray skies clear, so-to-speak. With that being said, any investment that you make should always be taken with consideration and a bit of research. At a minimum, you will always want to review the prospectus, of the asset class that you are interested in, and take a look at the last few news articles and press releases provided by the company. This can give you some insight into how the company is doing and what their shorter-term goals will be for the next few quarters. Use this information to position yourself with companies that can weather the storm of economic downturns, by taking advantage of low buy-ins for stocks when the market is down. The market will always rebound, and you can view a brief market downturn, as a way to get a sale or discount on stocks.
If you want to go the traditional route, brokerages such as TD Ameritrade and E*trade provide user friendly interfaces and numerous research tools that will help you set up your portfolio for success. If you also desire to get in on the gains of the crypto industry (which you absolutely should) then cryptocurrency exchanges such as Gemini will allow you to get set up and investing in crypto in less then ten minutes. The exchange offers Bitcoin, Bitcoin Cash, Ethereum, and other popular currencies to boot.
No matter what form you choose, this is a great time to expand your portfolio.
Upgrade your fitness
Experts have lauded the benefits of exercise for years, and if you haven’t already joined your fellow Americans in the current uptick in physical activity, then now would be a good time to start. Not only can exercise help to improve your mood to help ward off mental stressors, it helps you to maintain a strong and reactive body. As many are now working from home, it is important to avoid becoming sedentary. A lack of a fitness routine not only can set you up for physical injuries and make you more susceptible to illness, it can also cost you financially in the form of insurance premiums and other related medical costs.
Improving your fitness doesn’t mean that you need to go and purchase the latest Peloton machine (especially if you have never used or been a fan of at-home workout equipment) or an expensive couture online fitness membership. There are hundreds of free and effective online workouts that you can use in the privacy of your home to get going. You can even purchase yourself a small weight stand and a few dumbbells to get started on your strength-training regime. The important thing here is to start simple with a moderately paced 20-30-minute exercise routine a few days a week, so that you can keep with your progress overtime. As you get stronger you can challenge yourself to increase your frequency and intensity of exercise. You and a friend can even set up virtual challenges to motivate each other to keep with your respective routines. This can be the perfect opportunity to improve your mental and physical health to take on the rest of the year with vigor and strength.
While 2020 has presented with many unexpected scenarios, you do not have to let the events of the year stall you or your finances. By taking some time to breath and clear your mind you may be surprised to learn how you can put any money you’ve made to good use. Keep sight of new opportunities to invest your money, spend on the things you need, and keep a focus on your health so that you do not burn out. You can make things turn to your favor with a bit of perspective and diligent pragmatism.
Let us know what you think! What have you done to protect your earnings this year? What has or has not worked for you? Share your experiences down in the comments section below.