Financial survival in the time of COVID-19
When 2020 began, few, if any, of us could have expected that in just weeks our lives would be turned upside down by a mysterious virus that causes a dangerous disease called COVID-19. Now, like the rest of the world, we have been living with a viral threat to our physical health as well as our economic wellbeing for most of this year. What is clear is that our ability to survive now and thrive later depends on how well we take care of ourselves physically and financially.
Keeping yourself healthy and safe is always your first priority, but maintaining your financial health now is also vital to ensure you stay prepared for whatever happens while the world waits for a vaccine and effective treatment.
- Expect the unexpected. With so many still unanswered questions about the disease and its effects on the economy, financial experts caution to be more careful than usual with your household finances. Look for ways to cut expenses, even if only temporarily.
- Manage stress appropriately. Resist the temptation to soothe anxiety or boredom by indulging in online retail therapy or a big splurge, such as a new car.
- If you’re still working, consider boosting your emergency fund; if you’re not working, use your emergency fund as you need it.
- Seek help when you need it. Although much of the economy has reopened, we’re now watching cases spike across the state, exacting an increasing economic as well as physical toll. If the pandemic has affected your income, proactively reach out for help from lenders, landlords and utilities before you miss payments and damage your credit score.
- Take care of business. If you own a small business and took advantage of the Small Business Administration (SBA) Paycheck Protection Program (PPP), you can soon apply for loan forgiveness if you have met the program’s requirements. The president has also signed a bill extending the PPP program through August 8. Contact your bank for information about the PPP assistance application or loan forgiveness application process. And if you need additional financial help, consider your bank’s own small business lending programs.
- Stay calm. If you are an investor, the current volatile stock market may have you on edge, but investment decisions made out of negative emotions, such as fear and confusion, can actually hurt you financially. Take a deep breath, think about your goals and talk to your financial or wealth advisor for guidance.
Would you like to talk to a financial professional? Contact Evans at 713.388.1367 or evans.attwell@frostbank.com.
Evans Attwell
Senior Vice President
Frost Bank
Investment and insurance products are not FDIC insured, are not bank guaranteed, and may lose value. Investment and insurance products are offered through Frost Brokerage Services, Inc., Member FINRA/SIPC. Frost Brokerage Services, Inc. is a wholly owned subsidiary of Frost Bank. Additionally, insurance products are offered through Frost Insurance. Deposit and loan products are offered through Frost Bank, Member FDIC. Frost does not provide legal or tax advice. Please seek legal or tax advice from legal and/or tax professionals