20 Second Advisor: Budget considerations amid COVID-19

As we brace for the impact of COVID-19 and await policy interventions, here are a few considerations to keep in mind to stay financially resilient:

• Budget– revisit your budget and see if you can trim expenses in certain areas. It’s one of the most useful and essential steps during difficult times
• Service providers– reach out to see if they are offering cheaper pricing plans or creative payment methods to gain some liquidity (i.e. cell phone, cable, internet, etc.)
• Tax refund– if you are anticipating a refund, go ahead and file your taxes and use it to beef up your emergency fund
• Debt– avoid piling up certain types of debt, such as credit cards or other short term financing where interest rates are high. These may provide temporary relief but at a cost….in the form of fees, penalties, high interest rates, and lower credit scores should you miss a payment
• Home equity line of credit– interest rates have declined creating a good opportunity to access cheap liquidity in the event of an emergency
• Refinance– another way to lower your house payment and take advantage of low interest rates