Observing all this economic uncertainty can be frustrating and even frightening, even if you’re fortunate enough to have not lost a job or source of income. According to a new survey from SoFi, 14 percent of people say the stock market is causing them the most anxiety in 2020, and 12 percent say job security is. (Covid-19 is the top anxiety-causer for almost 65 percent of people.) A survey from Bankrate found that 52 percent of people have reduced their spending because of concerns about the economy or stock market, but beyond reducing spending, it’s hard to see what actions you can take to protect your finances. Fortunately, there are moves you can make now—while you’re stuck at home under quarantine—to protect your finances, even with an uncertain economic future. Hopefully the coming months won’t mean job losses or cutbacks for you and your family (if they haven’t already happened), but if they do, smart financial planning can provide a small cushion for you. And now’s the time to plan, too, while you’re sitting at home with a less hectic schedule than usual. Take these actions now, and you’ll thank yourself later. If you have the time and interest, you can even consider making a quarantine budget to help guide your spending during lockdown or social distancing. With so many common sources of spending currently unavailable—think travel, eating out, and entertainment—your household spending is likely to climb once businesses begin reopening, so plan accordingly. High-interest debt (often credit card debt) can be the most difficult to pay down because of the quick rate at which interest accumulates, adding to the overall balance. Low or no interest rates mean you’ll pay less overall, so if you do have high-interest debt or are carrying a balance on your credit card, consider a balance transfer. To ensure it actually saves you money overall—or extends the time you have to pay off the debt without excessive interest—look for no- or low-fee transfers and do your research on any new credit cards before committing. If something happens to your income later on (you or your partner lose your job or you experience a pay or hours cut, for example), you may not be able to make regular payments to reduce that debt, and it will continue to accumulate interest at a high rate. By the time you are able to make payments again, the amount you owe may be much higher than you expect, especially if you’re penalized for missing any payments. Paying down that debt as much as possible now—even if you can’t pay it off entirely—can help you down the line. RELATED: TurboTax Just Launched a Free Stimulus Center to Help Make Sure Everyone Receives Their Stimulus Check If you do have investments, they’ve likely lost value recently. Fight the urge to take a loss and withdraw all your money from the market, particularly if you’re investing for the long-term and have a cushion to live off of while your investments are down. If you work with a financial planner, talk with them about any particular investments you’re concerned about, but try to stay calm. If you have extra money to invest, consider adding diversity to your portfolio now, when purchasing bonds and stocks is relatively low-cost. “Make sure your portfolio has a healthy mix of bonds to stocks as they tend to act inversely: When one’s down the other is up,” says Ashley Russo, a financial advisor at Northwestern Mutual. “This will help smooth out the ride in the market.” If you have time on your hands, consider purchasing new insurance now, as well. Life or long-term care insurance can take a lot of time to be approved for, depending on which provider you use, so starting now while you have the time can help the process feel less stressful. It’s also possible to get life insurance quickly with companies such as Ladder, so you can easily check another thing off your quarantine to-do list.
