Like me, you’ve probably seen conflicting advice on how to handle your finances during the COVID-19 pandemic. Is it better to invest in stocks during a fluctuating economy, or are you better off holding onto cash?
Financial coaching can be a terrific way to get unbiased insights and helpful guidance on which investment strategies are right for you. As a financial coach, my unwavering goal is to help you become financially independent and gain more confidence in handling your money. As we all do our best to navigate the economic upheaval the pandemic has wrought, here are some questions to ask yourself before making any investments or other financial moves.
Should I have a fully funded emergency savings?
Financial experts have traditionally recommended having three to eight months’ worth of living expenses saved in an account you can access immediately without penalty. That’s still great advice, but in times of crisis, and with job security still a big unknown, it’s worth considering putting aside a few extra months’ worth of cash.
How much cash should I have on-hand?
I tell my clients they don’t need a ton of cash to save or invest, but they do need to look at their options realistically. Even saving as little as $20 per week is a good habit to maintain. Instead of jumping right into stocks, though, you might want to build up the funds in a high-yield savings account, and then, move into investments.
How do investments work?
You’ve likely heard the expression “the stock market isn’t the economy”, and it’s true. Stocks tend to be over or undervalued based on investor expectations and perception. Whether you intend to invest in the Dow or S&P 500, be sure to talk with someone who can educate you on things like how investing is a long game and why purchasing shares in a fund helps you weather any financial storms.
When do I need the money?
Do you dream of retiring early? Do you want a well-funded retirement at age 72? If you have short- to medium-term goals, saving rather than investing might be your best bet. For long-term goals, investment in the markets can make more sense.
Financial Coaching During a Pandemic
So, should you be investing during a pandemic? Here’s the bottom line: there’s never a bad time to save your money and put yourself in a better financial position! Financial coaching is another investment that can pay dividends in the long run. As a Las Vegas-based financial coach for millennial women, I love helping my clients become intentional about their money and make their money work for them – today and into the future. Schedule a consultation today!