In this time of uncertainty, money is of the utmost importance. As we work to come out on the other side of this pandemic, it is important that we are financially stable. Rolling out spoke to wealth accumulation specialist Kimberly Thomas and she shared some valuable and actionable tips. Thomas has 22 years of experience in the financial industry and runs KimCo International.
What are the top 5 actions you suggest one should take with respect to their finances during this pandemic?
First, begin confirming that your financial ducks are in a row:
- If you have been laid off, furloughed, or fired, apply for unemployment immediately. Confirm when your last paycheck will be deposited. Confirm you will be paid for sick and vacation days. Confirm if your health-dental insurance will continue.
- If you are still working, streamline or pause the amount of money going into your 401k or savings at this time. You may need those extra dollars at this time. You can begin saving-investing again once life returns as we know it.
- Review the entire family’s monthly expenses and see where you can trim the fat. What is important to continue? What may we have to add to our monthly expenses? Confirm you are not in the red.
- Shop the best interest rates for money market accounts. Transfer your cash reserve in a better savings position. There are some great money market funds that are offering some good rates at this time. We need “Mr. Interest” to be on our side when it comes to our savings. We may have to use our cash reserve during this pandemic.
- Review your retirement accounts to see how they are invested, and if you have money in equity positions that may be volatile at this time or if you have money in a cash/bond position that would offer the stability of your account. If you have questions contact your financial advisor.
What would you consider some of the set resources to learn more about money matters?
Your set resource is your financial advisor. They are your “first responder” daily and especially during times like this. All ” first responders” are on the front line. They know your financial risk tolerance in times like this, short and long term goals, objectives. They have your financial statements. They have your monthly expenses and budget, and they are the point guard of your financial team that helps you with your financial affairs. Your financial team is your financial advisor, attorney, certified public accountant-tax preparer, banker, pension plan administrator and real estate agent.
The government is giving out stimulus checks. How do you suggest people budget the money?
The $1200 stimulus check will be helpful to many people. This check could be budgeted for the following:
- part of your emergency reserves to make it through this pandemic
- use as a rent-mortgage payment to make sure shelter is taken care of
- pay down-off a monthly expense to create additional monthly cash flow
Watch the full interview here.