Quick considerations for financial stability
August 2020
Prior to the pandemic, an estimated 49% of Americans were living paycheck to paycheck and 53% lacked emergency funds to cover three months of expenses. A full 91% said they wanted to build better habits in 2020. With pandemic impact likely to impact daily life into 2021 and beyond, there’s never been a better time to get serious about personal finance.
Budget:
Think budgets are bunk? You’re not alone. About 30% of Americans don’t think they need one. But uncertain times call for absolute certainty about your resources – and finances should be a primary consideration. You can start by balancing new costs that may have increased (groceries) with costs that have now decreased (gas for your car).
Build a buffer:
Roll the entertainment, travel, and transport funds you aren’t spending to increase your rainy day or emergency fund. The pandemic has exposed risks a lot of us may not have previously considered, so it’s a good time to have a little extra cash in the coffer.
Be debt-wise:
Forbes calls interest-incurring debt the “silent killer of your paycheck.” When it comes to debt, there are a number of ways to mitigate the interest you’re paying and to reign in that lost cash. Stop using credit cards until they’re paid off and look at transferring to a 0% APR card. If you have student loan debt, refinancing, consolidation, and programs for student loan forgiveness may be options.
For comprehensive questions about financial protections, you can also check out this fairly exhaustive Financial Protection Guide from Forbes.
Please drop me an email or call if you have any questions – or someone you know is in need of expert advice. I love to help those you care about. If you have a referral please click the button down below. Your referrals are the heart and lifeblood of my business.
Omar Khamisa
Owner
Mission San Jose Mortgage
2111 W. March Lane, Suite B100
Stockton, CA 95207
Office: 209-651-2000
Mobile: 510-648-5535
Fax: 209-434-2311
NMLS: 369325
Omar@MSJMortgage.com
