The Pandemic has affected everyone whether it be emotionally, physically and/or financially. For some, the financial impact has been significant. As the world starts to open back up and many return to their pre-covid social and work life, we need to stop and look at our financial picture.
- Figure out your monthly nut – Review your You may have incurred debt to sustain yourself through the pandemic. You may have realigned your spending priorities. The first step is to know where your money goes by tracking all your expenses.
- Live within your means- Once you know where you spend your money, set up a realistic budget and stick to it. If you can, allow yourself some small luxuries It will help you stay on track over the long term. There are several apps and online tools to help you track your money and set up a budget.
- Pay off credit cards – This should be a top priority. Most credit cards come with high interest rates of 18% or more and can be difficult to pay off when interest continues to accrue. A little sacrifice now will result in significant savings down the road. For example, you have $10,000 of credit card debt at 18%. If you pay $375 per month, it will cost you $2,867 in interest and take you 35 months to pay off the debt. By paying an extra $100 per month (around a cup of coffee a day or 1 dinner out per month), you save $759 and will pay off your debt 9 months sooner.
- Start saving – Once your debt is paid down, use those allocated funds to build your savings. You should have at least two buckets. Rainy day savings (6 months of expenses) and retirement savings. Saving as little as $200 per month and earning 7% per year for 20 years will grow to $104,793.
By focusing now and making little changes today, you can get back on track toward your financial goals. The pandemic was a wake-up call for a lot of us. It made us think about what is most important – our family and friends and our financial security. As you look toward the future and attaining your financial goals, consider working with a financial advisor to help set you on the right course and keep you accountable to your goals.
Mario Hernandez has been a Certified Financial Planner (CFP) for over 30 years and brings a vast amount of experience in the financial planning and investment management business. Through Longevity Wealth Management, Mario provides holistic planning services that help clients find solutions to live their best life. Mario’s email address is mario@longevitywealthmanagement.com. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Longevity Wealth Management. Osaic Wealth, Inc. is separately owned and other entities and/or marketing names, products or services referenced here are independent of Oasic. Certain insurance products are offered by Mario Hernandez as a licensed agent independent of Osaic Wealth, Inc.. Mario Hernandez is not affiliated with Osaic Wealth, Inc. or registered as a broker-dealer or investment advisor.
