We’ve already talked about how important your mindset is in dealing with uncertainty especially in times like these. Today, let’s expand upon that and talk about what you can do to boost both your financial and emotional well-being.

1) Assess your cash cushion and income stability

You know how every financial planner under the sun – myself included – tells you the most essential piece of any good financial plan is a solid cash cushion? Well, we do that so you’re prepared for times like these.

It’s much, much easier to ride out market fluctuations when you know you’ve got cash on hand if you need it. 

It’s also important to assess how your income might be impacted in the future. Has your industry been impacted by coronavirus? What about your specific job or business? And if it hasn’t yet, could it be in the weeks and months to come?

Your answers to these questions could mean it makes sense to temporarily reduce some of your longer-term savings towards future goals – things like college or retirement – in order to boost your overall cash cushion in the short term. 

Remember, your cash cushion is the foundation of both your financial and emotional well-being.

2) If you’re stable, look for opportunities

If your cash cushion is well funded and your income appears to be relatively stable in the near future, then it might be time to look at some of the opportunities this situation presents.

With interest rates being cut, mortgage interest rates have also dropped. It could be a great time to refinance your mortgage if you’re in the financial position to do so. As an example, Michelle and I were able to cut five years’ worth of payments off of our original 30-year mortgage and keep roughly the same monthly payment by refinancing into a new 20-year mortgage.

(Note: Need someone to talk to about refinancing? Reply to this email and let me know. I’ll send you some folks who can help.)

Additional opportunities will likely be available through other retailers this spring. Most already have their inventory ordered but demand has dropped significantly since they placed those orders.

That means if you’re in the market to replace a vehicle, for instance – you know, for when we can leave our houses again! – reduced prices, enhanced manufacturer rebates, and zero percent financing rates are all working in your favor right now.

It might be a scary time to think about spending any money at all but if you’re a good financial shape, just be aware there are opportunities to be had if you're looking.

Note: Please ONLY consider these opportunities AFTER making sure your cash cushion is enough for your needs and your income is relatively stable.

3) Talk about it – out loud

One last suggestion is to make sure you’re talking out loud to someone about all of this. Talk to your spouse, talk to a friend, talk with a therapist, or talk with me. 

The actions we take in high stress situations that we come to regret with the benefit of hindsight are born in the negative self talk that often occupies our own mind. So before you do anything, talk to someone else about it. Just saying it all out loud will help you assess the situation much more clearly yourself.

I hope these suggestions are helpful to you in boosting both your financial and emotional well being. Remember folks that this too shall pass and I’m right here if you need me.

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