Survival Tips:  How to financially Survive COVID-19

by Tina M. Herndon, Consumer Lending Manager

When disaster strikes, it is easy to get into short-sighted panic mode, but here are a few tips to help you make it out of this crisis with your financial life intact. 

• Don’t spend more than you can afford even when the threat of not having enough is upon us.  This is not a time for stockpiling.  Please remember the bank is unlikely to let you pay your bills in toilet paper.

• Do not borrow – this includes credit card transactions!  Every time you use your credit card, it is a (usually high interest) loan that will require paying more than you borrowed.  The immediate future is too insecure for large purchases, it is better to wait until this crisis has ended.

• Eviction, foreclosure, disconnection, will make a comeback!  Though our creditors are not using hard collection practices right now, they will.  Any threats of service interruptions or banks securing collateral, will still be there, waiting for you.  Please use this time (and unexpected money) to pay catch-up on bills if you are able.  Again, not the time for large purchases.

• Eating out could cost more than your waistline.  Eating out is a big budget buster.  Although restaurants are giving discounts and offering free delivery, you still only have a finite amount of money.  If you spend too much, you will likely be in trouble when the world returns to normal.

• Avoid retirement freak-outs.  Those of you who are fortunate enough to be able to continue to contribute to your retirement, don’t stop.  Think of this as a stock sale.  This BOGO (buy one get one) sale has a time limit, and once the stock prices recover, you are out of time to buy low.  Remember the motto of the market is buy low/sell high.  This is your opportunity to buy low! 

In this time of worldwide crisis, it is easy to let fear stand in the way of our long-term goals.  Remember that it’s never too late to form new and healthier habits.  Watch for a follow-up article on how fighting boredom can help you become more financially fit.