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We’re experiencing one of the biggest periods of economic volatility in history. With fluctuating markets; the temporary or permanent loss of income affecting many; and a growing sense of uncertainty in terms of a return to life as we knew it, the current global health and economic crisis has shaken the ground beneath nearly all of us. You may have even taken some hits, but you’re still on your feet. And that puts you in an interesting position, one where you might be asking yourself, “Now what?”
Right now, it's time to renew, refocus, and rebuild your path to financial wellness.
What We Have Learned from COVID-19?
During times of struggle we learn what’s truly important in life. Using that refreshed perspective, we can find opportunity in uncertainty, and take control of our financial future by developing a financial plan that ensures you—and things that are most important to you—are well-protected into the future.
Here are some of our biggest takeaways many of our clients had through the pandemic:
The Importance of Emergency Planning
If recent events have taught us anything, it’s the importance of having an emergency plan. Of course, no one expected COVID-19, but then again, no one expects to lose their job or have their industry disrupted by new technology, or face any other number of sudden financial hardships that can quickly derail your future. The fact is, it’s likely you’ve had to adapt to something unplanned in your life over the past two decades. COVID-19 is only the most recent example of why you need a solid emergency plan.
Insurance Coverage is Critical
As the virus has swept around the world, you’ve seen how critical health, long-term, and life insurance are to financial wellness. If you or someone you love gets sick, chances are you’d be willing to trade every dime in your portfolio to get yourself or your loved one healthy again. Luckily, you don’t have to make that trade if you’re properly prepared. Money can’t buy health, but smart financial planning can make sure an unexpected illness doesn’t decimate your financial situation.
A Set-Back Can Become A Set-Up for Future Success
Maybe you’ve also learned that you weren’t as prepared as you thought you were. Perhaps you had planned to remodel your home or finally take that exotic vacation you’ve been dreaming about and now, those things don’t feel quite feasible. Or, maybe you’re finding that you won’t be able to retire on time. The important thing is to not be discouraged by these setbacks. Instead, think of this as an opportunity to renew and rebuild your financial wellness.
The Biggest Lesson: An Opportunity for Financial Mindfulness
Perhaps, the biggest lesson we’ve learned over the past several months, is that by appreciating the people and things that are most important to us, we’ve found how rewarding a more financially mindful life can be.
Gone are the days of running out for a coffee or a quick bite to eat when you can just make it at home. Leisurely shopping trips have turned into focused outings, where impulse buys take a backseat to making sure we get everything on our list. By concentrating on the things we need, instead of becoming distracted by the things we want, we’ve noticed that without even meaning to we’re spending less and saving more.
But more than that, because we can’t go out and buy distraction, we’re finding joy in things that don’t have material value. Connecting with family and friends has become more difficult, but more meaningful than ever before. Maybe you’ve picked up a new hobby, or rediscovered an old one. Letter writing, bread making, learning a new language—all the things you’ve wanted to do, but you didn’t have the time for, are now within reach and you’ve discovered the joy these pursuits bring.
This crisis has also made it clear how we’re all sharing one world. You’ve probably reached out to help causes close to home, or on the other side of the planet. You’ve signed petitions, raised awareness, and donated time and money to help others in need. You’ve realized we’re all in this together, and that by doing your part no matter how small, you can bring change to the world.
Renew and Rebuild
COVID-19 has forever changed the world. There’s no going back to normal; there is only the next normal and what you make of it. You’ve learned what’s important to you and gained a new way of looking at life, a simpler, more meaningful way. By taking a comprehensive approach to your financial wellness and planning goals, you can maintain focus on the things that really matter to you, develop a plan to support them, and emerge from this time stronger and more prepared than you were before.
As your financial advisor let us help guide you in developing a plan based on what matters most to you. We can help build your financial confidence and get you moving toward the new goals you’ve discovered during these trying times. When this crisis is over, life may still have a few scary or uncertain surprises in store, but with a financial advisor on your side, you can be sure to stay on the right course, no matter what the next normal brings.
Interested in learning more? Get in touch with our team to talk through your financial goals, and learn how Baker & Associates RIA, LLC can help you achieve them.