Many cities around the world are coming out of lockdown and starting to open back up. Now that we understand better how to deal with COVID-19, it’s important to think about the future. If your financial planning took a back seat during the lockdowns, you may want to reevaluate your plans.
Many people have run into money problems as a result of the global crisis and lockdowns. The worst of the pandemic seems to be over, and people are getting back to work. Some are returning to their old jobs, some are starting new jobs. Many have transitioned to permanent work-from-home options. New businesses are being started too. A lot of valuable lessons have been learned, so with all the changes going on, it’s the perfect time to reevaluate your finances.
Economic growth is booming, and opportunities are opening up everywhere. Growth for the country can mean financial growth for you. Keep reading to learn how to optimize your financial planning so you can grow your wealth and plan for retirement.
- Asset Protection
- Turning Financial Difficulty into Financial Growth
- Financial Planning for the Future
- Living in a Post-COVID World
Many people have lost their jobs, their businesses, and even their homes because of the consequences of the pandemic. Now is the perfect time to take stock of your situation. There are adjustments you can make right now that will make you happier and more prepared to face the future. A penny saved is a penny earned, so a few changes now may help you protect what you have so it can grow into the future.
The first thing I suggest in situations like these is to take stock of what you have and what you can do to protect it. Do you own your own home? Interest rates are lower than ever, but the economy is signaling inflation. Some banking experts are forecasting hyperinflation! You can protect your home by locking in a super-low fixed interest rate. That way, if inflation does hit, your home will be more secure than ever. Even if you don’t own a home, if you have outstanding debts, you can look to consolidate. Find the best interest rate available and consolidate all of your debt under that one rate. You can ask for a credit limit increase if there’s not enough room, or make the banks compete for your business by negotiating hard.
Developing an ownership mentality can help you protect your assets. You’ve worked hard for what you’ve got, and you deserve the best, so take care of what you have.
Turning Financial Difficulty into Financial Growth
The pandemic and lockdowns have created a lot of problems. Many businesses have closed, never to reopen. People have lost their homes due to foreclosure and eviction. Savings have been depleted, and many have had to declare bankruptcy.
Money troubles can happen even during the best of times, and a global pandemic has made financial situations worse. But every crisis also brings with it new opportunities for growth. If you are experiencing money problems, now is a good time to look for new sources of income.
Many cities have been turned upside down, so there are lots of new jobs being created. While some jobs have gone away, there are new industries being invented. Telehealth and other remote work jobs are booming in ways we have never seen before. And not only are new jobs being created, there are also opportunities to go into business for yourself. If you have an entrepreneurial mindset, there are unique opportunities and offers popping up all over the place.
Now is the time to map out your capabilities and set a course for better days.
Financial Planning for the Future
It’s never too early to think about what kind of retirement income you can expect. You should have short-term, medium-term, and long-term savings. There are many resources available to help you get set up right and make the most of your situation.
Explore all of the financial resources available to you, and learn more about your options. Consider continuing your education or getting training in your skillset so you can get promotions or upgrade your career. Nothing makes financial planning easier than when you’re making more money.
There’s a lot of free money out there too. You don’t have to make more to have more. Many businesses and organizations offer rewards programs for loyalty, so ask the places you frequent if they offer rewards. Look through your employee handbook and make sure you’re taking full advantage of all the perks you have at your job. If you have kids, familiarize yourself with the scholarship and grant options available. If you know what’s required, you can direct your kids in the right direction so tuition will be easier to pay. Even coupons are easier to use. Most stores have apps that allow you to electronically apply coupons, saving you a few dollars here and there. Over time, that can add up to thousands of dollars a year. And once you get into the habit of using these tips, it gets easier—and it can be a lot of fun too.
Living in a Post-COVID World
Most people have taken a hit to their financial stability because of the events of 2020. Most are experts with masks and hand-washing now, and have learned valuable skills that will be helpful even when we’re on the other side. With any luck, we are through the worst of it. There’s no better time to plan for the future than right now.
Financial independence can sometimes seem like an impossible dream, especially right after a crisis. But your opportunities are better than ever right now. There are new jobs opening up and lots of optimism in the markets. If you make good plans now, you will reap the rewards sooner. You may even want to update your resume and look for a new job. The economy has changed radically over the past year. You may be qualified for more responsibility, higher wages, or other perks. But you won’t know unless you look. You might be overqualified for your present job.
When was the last time you updated your financial plan? I recommend updating your savings and retirement plans as soon as possible. The world is changing in dramatic ways, and if you take advantage of new opportunities, you’ll have a happier and financially healthier future.