Top 5 Questions We Have Been Asked During COVID-19

We know that your finances are top of mind right now. You might be worried about your investments, income, or savings right now-- and we understand, finances can be frightening! We’re here to provide the answers you need when you need them. If you haven’t tuned in yet, be sure to turn to our Instagram page at 12pm EST every weekday, where you can chat live with one of our Financial Trainers! Here are five of the top questions we have been asked during this time of social distancing.

Should I be investing right now while the stock market is down?

This is a complicated question because the answer is maybe, it really depends on your individual situation! In general, we recommend that you have 3-6 months of all expenses saved up in what we call an emergency fund. This way, if something tragic occurs, you have cash readily available so that you don’t have to fallback on credit cards. We also recommend that you clear away most consumer debt before you begin investing! Student loans and personal loans typically don’t have as high interest rates, so we are really only concerned about consumer debt. If you have paid down most of your consumer debt, have a fully funded emergency fund, and have a steady stream of income per month, then yes-- you are in a position to begin investing. To learn more about this, check out 4 Financial Moves To Make Before Investing During COVID-19.

My student loans are in deferment until September. Should I keep making payments?

This is another question that depends on your situation! The lenders are giving you this time that you do not have to make payments so that you can use this cash for other purposes without interest compounding on your loans. If you have a fully funded emergency fund and job security, then it may be smart to take this time to put extra money you would normally spend on things like dining out, travel, transportation, a trip to the hairdresser or nail salon, or any activity we cannot do right now towards your student loans. This way you are paying down the principal sooner than you would have before the deferment, and lowering the overall interest you would have paid on your loans!

I am unemployed due to COVID-19. How should I navigate unemployment?

Many people are experiencing unemployment right now! If this applies to you, start by familiarizing yourself with the unemployment insurance eligibility for your state and apply if you are eligible! Unemployment eligibility has expanded during the global pandemic, make sure you are reading information that is dated as recently as possible. Know that because unemployment applications are so high right now, wait times may be higher than normal. Don’t get discouraged, check your unemployment application and portal often and call frequently to push your application along. While you may be waiting for your unemployment, revisit your budget and cut back to only bare bones essentials. You can also want to call creditors or service providers and ask to have your rates lowered (for example your credit card’s interest rate or your cable or phone bill). Also, if you are actively looking for a job, check out our tips for applying during COVID-19 here.

How should I begin saving money?

Everyone starts somewhere! Start by taking an inventory of your monthly income and your monthly expenses that you can’t live without (rent/mortgage, utilities, day care/child care, groceries), from the money leftover decide how much you can automatically put into saving before you start to spend on other things! Ideally you should aim to save 10%-20% of your gross income, but this may begin with $1 a day, or one less coffee a week. We know that it might seem insignificant at first but we promise you will see the culmination over time and it will become rewarding! Ideally we encourage 3-6 months of savings for your emergency fund, but do your best to start with a goal that feels good for you. 

Is now a good time to buy a home?

Similar to investing, before you’re ready to buy a home you’ll want to make sure your emergency fund is in order. Now might be a good time to look into taking out a mortgage because interest rates are low and lenders are being flexible. That being said, if you were not planning on buying a home before this global crisis, now is not the time, simply because interest rates are low. There are many unexpected expenses that come with home ownership so you’ll want to make sure you have additional funds for home repairs! Home buying is a very big financial decision and investment, if you have a Certified Financial Trainer you should discuss this with them!

Ready to take your finances to the next level?

To get started schedule a free 20 minute consultation call to speak to a member of our team. We will ask you a few basic questions to get to know you more, walk you through our financial training program steps, and of course answer any questions you may have. No pressure to join!