During times of uncertainty, it is always important to make sure you prepare yourself for anything that comes your way because nothing is guaranteed. To help, here are some ideas to help you better allocate your income.
1. Put it in an Emergency Fund (Savings Account)
It is never a bad idea to save your money for a rainy day. Whether you need to cover hospital expenses, you unexpectedly get laid off from your job or you need to pay to get your car fixed, it is always beneficial to have some extra money saved up for those emergencies.
2. Make a New Budget
As you spend more time at home, you most likely have realized that there are some things that you thought were essential that aren’t anymore. These could be items such as getting coffee from Starbucks or activities such as going out to eat with friends on a weekly basis. Based on what is essential, you can create a budget that helps you stay on track, especially if you are on a tight income during this time.
3. Spend Less on Non-Essentials
You may think that you need new electronics or that you need to stock up on new clothes or beauty products. However, those are just a few of many non-essential items that people think they need, but it is not crucial at this time.
4. Donate to Charity
If you have a little extra money that you do not need, donating it to charity is always a great option. It is a wonderful way to give back to the community and it is helpful for many people especially right now with some having a loss of income.
5. Review Your Investments
What do you currently invest in? Whether it is stocks or real estate, it is important to take a look at how well those investments are performing. Take the time to decide to invest additional money into it or if it is not profitable, it is wise to come up with a plan of how to reallocate your investments.
As we work together to get through these ever-changing times, let us know how we can help! Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or visit us online at caminofcu.org for more information. We are here to help you on your financial journey.