5 smart financial moves to consider during a crisis

By Casey Nealon | Citizens

As the world is glued to their televisions and smartphones for breaking news about COVID-19, many people are also worried about their family’s finances. Whether it’s losing a job or reevaluating retirement plans, each person is affected differently. According to a recent study by the AARP, 53% of U.S. households don’t have an emergency savings account. So if the unexpected happens, many families may find themselves unprepared in a time of crisis.

But no matter the unexpected challenges you may be facing, there are things you can do to keep yourself and your family on track during these uncertain times. Read on for five proactive financial health moves that can help you through a crisis, and even during a pandemic.

It may not be the most fun solution, but looking at your budget is the very first step you should take when you have a change in income or expenses. Using our budget calculator makes it easier than you think. It’ll prompt you to consider what’s necessary — and you’ll be glad you did. You might even save on things you’re not paying for anymore, like gas or eating out. After all the essentials are paid for, any extra money should go into savings.

If you’re feeling unprepared, it’s never too late to adjust and move forward. The general rule of thumb for an adequate emergency fund is to save enough to cover your living expenses for three to six months. That includes rent or mortgage payments, monthly bills, food, and other necessities. It may sound like a lot, but that shouldn’t stop you from safeguarding yourself from future speedbumps. Every little bit counts, and you’ll thank yourself later for doing what you can now. It helps to set up a separate savings account, so you’re not tempted to dip into your emergency fund until it’s absolutely necessary.

In addition to the essentials, you might have to budget around some debt to keep your goals moving forward. Check with your bank, credit card company, or loan provider to see how they’re responding to the coronavirus — many are temporarily cutting interest rates, suspending payments, or waiving late fees to assist people suffering financial hardship due to COVID-19. Don’t be afraid to reach out; many companies have the means and are willing to help.

If you still need help paying your bills, consider refinancing your loans or consolidating credit card debt. Reducing the number of payments and interest rates might be enough to pull you through a hard time and make achieving goals easier. However, depending on your financial situation, it doesn’t always save you money, but it’s worth talking to your lender to find the best solution for you.

It’s not just companies that are helping out. Despite the unprecedented nature of the situation, local outreach to those in need has been nothing but inspiring. Many cities are giving free money to shelters and soup kitchens or deferring utility payments and evictions. Of course, each community will have different programs and opportunities available, so getting updates from your local news outlet is key to staying informed.

There are so many questions about the future, and so few answers. One can only guess how long this pandemic will continue, which is why it’s doubly important to protect your financial future. But don’t panic; there will always be people ready to help.

We’re committed to helping you from afar. We encourage you to explore mobile banking¹ with mobile check deposit and learn how to use it to stay on track. You can also still get help from our dedicated colleagues by calling 1-800-922-9999. Please read the temporary changes to our locations if you need to visit. Even amid these changes, Citizens is dedicated to helping you reach your potential.