Are you financially and practically prepared? Here are 8 Steps to a Practical Financial Strategy during COVID-19 (or for any emergency!)
Personal Financial Wellness: Assess Your Current Situation
Table of Contents
- 1 Personal Financial Wellness: Assess Your Current Situation
- 2 Put your Refined Financial Strategy Into Action!
- 3 Stay Safe, and Stay Focused!
Remember, before any of us can be of any sustainable and productive help to those in need (family, friends, even immediate family) they need to have a practical financial strategy as a bedrock and the base of their plan. That is where the application of Mêtis comes into play. This isn’t just for finances! You need to prepare in a practical sense as well.
Here are some considerations to review, and to start working towards if they aren’t already in place. Keep in mind, this is the same progression recommended for just such an occasion as this pandemic. If you don’t have this outline in place, consider starting right now. If this is something you’re already working on, keep it up!
Fan the flames and accomplish your goals! Put these 8 Steps to a Practical Financial Strategy to work during COVID-19. With these in place, you’ll be well on your way to thriving during this difficult time.
A Good Practical Financial Strategy starts with an Honest Self-Assessment:
Honestly, and I mean very candidly ask yourself these 4 Questions and rate your progress:
- Do you have a functioning, well-written budget setup?
- What areas are working and what areas are lacking? (Keep in mind, there is always room for improvement).
- Take stock of what works, be encouraged by progress, and then take the next step).
- Do you have an emergency fund with enough for an emergency?
- A lot of people are going through very difficult times on the job front especially during this period of uncertainty. Remember, anyone could lose our job in an instant.
- Do you have some money set aside to keep yourself afloat? Personally, I used to think “that’s what credit cards are for!” I propose that is not a great idea because eventually those credit cards are due. If you don’t pay them when they become due, you’re now in a double-emergency!
- Are you drowning in credit card debt? What about non-mortgage debt?
- While easier to identify and call out, dealing with them is hard work. Make some hard choices. If you are struggling with credit cards – STOP USING THEM.
- No time like the present to roll-up your sleeves and get started. Cut all non-essential spending (good-bye cable, down-grade the phone plan, don’t go out to eat, etc.) and you’ll be there soon enough!
- If you qualified for the government stimulus and/ or got a tax return what did you do with it?
- Was it put to good use, productively employed? Check out my post on bonuses!
- This one hits home for a lot of people. I remember several years ago my wife and I realized that we were basically just treading water each year. Money-in… Money-out for a shiny new something… Rinse and repeat. Don’t fall into the trap!
Put your Refined Financial Strategy Into Action!
Now, based on those responses you are ready for this next step. Action, my friend!. The next point is near and dear to me, and while not directly related to money per se, it is related to Mêtis: preparedness.
As we look at these next 4 Questions, think about being prepared in a practical physical sense, in addition to being financially prepared. Some of this comes from my time in the military; some of it is from my hobbies of being prepared, survival research, and my love for being outdoors. (Note, this is a quick-start, and not intended to be exhaustive.) In all things remember, being financially prepared will in turn allow you to be more prepared on all other fronts!
A Good Practical Financial Strategy continues with these next 4 Questions:
- Being Prepared: Do you have a good 3-6 month supply of essentials?
- Food, water, toiletries; the basics
- Basic tools around the house for repairs and maintenance
- Some extra cash
- Get that budget setup! If you’re already proficient on that topic, take a look at areas you can improve based on question #1.
- Read a book on budgeting or another topic of interest.
- Give a little more to charity
- Look for new ways to save a few bucks
- Be ready to invest some money
- If you’re already strong on the budget and are giving back in time and charitable donations, then think about how you can invest strategically for the future by taking advantage of the opportunities when they arrive.
- I’ll conclude with you spiritual and mental state (that is not to say it is the least important).
- These are unprecedented times – make time to be thankful with you family and loved ones. Together, think about what you have, be genuine, and say it out loud.
- Make some memories doing something you’ve never done!
Stay Safe, and Stay Focused!
Thanks for checking out this article! I hope this was helpful, thought-provoking, introspective, and encouraging. Remember, keep Mêtis in Mind by implementing these 8 Steps to a Practical Financial Strategy during COVID-19.
Challenge your thinking by asking: “What are you doing today to better yourself, your family, and those you care about?” Life doesn’t ask permission before throwing a curveball our way.