The last few months have been unlike anything the modern world has ever seen. And here in the U.S., it’s arguably the biggest crisis the entirety of the population since WWII. But this time is different; we can't see the enemy, we can't touch it, we can't fight it. But, the pain and suffering of our people is the same as if our cities were attacked by a physical force.
How did this happen and what could we have done to minimize the pain and suffering inflicted on our people? That's a subject we will leave to the experts.
For the purpose of this discussion, there is something we all can do as consumers, investors, parents and citizens that is extremely beneficial, doesn't cost anything and can only help us in the future.
In mid-March the U.S. Federal government began issuing stay-at-home guidelines. Overnight, it seemed, 26 million people were unemployed, businesses were shuttered and we were told “take some time off, spend 1-2 months at home, don't go out, don't go to movies, sporting events, family events, etc.” On the surface this sounded copesthetic--- stay home, sleep, watch TV. But as a result, and through no fault of our own, we lost jobs, our businesses and companies faced furloughs or even bankruptcy. The result of all this elimination of business was no livelihood. As the weeks went on the question for many Americans arose - “How will we make ends meet?”
We must rethink the way we spend our money. Just a few small changes in your financial plan can make a huge difference in your financial future, for example:
Begin retirement savings early -- the sooner you invest your cash, the more time it has to grow.
Set up automatic deposits -- Be sure to continue to grow your savings with weekly or monthly investments.
Download a budgeting app -- these apps allow you to input your income, monthly expenses, liabilities and bank accounts in one secure place so you can track everything together. Be sure to check reviews and credibility before sharing any financial information.
Even small deposits add up -- you might think small sums are not worth depositing into your savings, but even small dollar amounts will greatly add up overtime.