The coronavirus pandemic has left millions of people uncertain about their financial future. The virus’s effect on the U.S. stock market and economy means that it’s more important than ever to understand your financial situation and plan for the future. Follow the financial planning tips below to create an action plan that will get you where you want to be in the coming years.

How to Plan Your Finances During the COVID-19 Outbreak

1. Don’t Sell Your Stocks

The stock market has seen a significant drop, so now is not the time to sell. Selling will lock in those losses. If you can afford to wait, you’ll likely see your portfolio make a recovery in the months or years to come.

Historically, the market has recovered after difficult times, so patience will pay. You can talk with your financial planning team about what they recommend for specific investments.

2. Contact Lenders

Many people are unable to pay their bills on time right now, and financial institutions are trying to accommodate this. Don’t just skip your payments, since this will bring your credit score down.

Contact your credit card companies and other lenders to discuss options. Tell them why you cannot pay and what you can afford to pay. They may waive fees or be willing to adjust or delay payments.

3. Keep an Emergency Fund

You should always put away at least three to six months’ worth of expenses so you can continue through difficult and unsure times without too much worry. For seniors in retirement, a cash reserve for a year is ideal.

If you’re using your emergency fund now, that’s fine – that’s what you have it for. Just plan to save again once you have a handle on your finances. Avoiding making any unnecessary purchases for the time being; stay inside and stick to the necessities.

William G. Molitor, CPA and his certified staff offer financial planning services for the people of Cottleville, MO.  This family-owned and -operated business has been the trusted accounting services team for the St. Louis metro area since 1990. They will help you navigate the current financial climate to plan for your future or retirement. See their full list of services online or call (636) 926-0502 to schedule a free consultation with an accountant.