Keeping your financial fitness on track
To lessen the impact of the COVID-19 outbreak, many of us are spending more time in our homes. While this may have given you extra time to reflect your mental and physical well-being, this is also an excellent time to focus on your financial wellness. Do some of your future goals include saving to buy a house, paying off debt or planning for retirement? You can begin to explore your financial fitness by keeping an eye on your spending habits, checking on your “nest egg” and making sure your savings goals are on track.
Here are a few tips to help improve your overall financial well-being:
- Create an emergency savings fund. Ideally, your emergency savings should contain 3–6 months of income. This will help you create a buffer should an emergency occur, or if your employment status changes.
- Consider funding a Roth or traditional IRA. With each of these accounts, you can set aside extra money for retirement and receive a tax deduction. Since the tax deadline this year has moved to July 15, you have extra time to make the maximum contribution. Consider talking with a financial advisor or accountant for additional information on how to do this.
- Be vigilant about potential scams. Unfortunately, scammers are still at work—even during this global crisis. Be wary of any unsolicited emails, phone calls or text messages, particularly those asking for a donation of funds or for any sensitive or personal information.
- Pay down debt. When you have a chance, make a list of any debts you owe, taking note of interest rates and your minimum payments. If you’ve received stimulus money, you can apply it toward lowering your debt. You may also want to contact banks or creditors to see if you can take advantage of hardship options or debt relief programs.
- Check your credit score. Take a few minutes to obtain a free copy of your credit report. You can then take steps to clear up any errors and monitor potentially fraudulent activity. A healthy credit score can be very important when considering big purchases, like a new car or your next home.
Start being financially fit today!
There’s never a bad time to start on the road to being more financially fit. Having your finances in order may relieve stress and help you prepare for future purchases, large or small. Financial fitness is a step to keep you on track toward meeting your savings goals.
For more articles about health and well-being at home, visit www.meritain.com/covid19.