We are living in truly remarkable times the likes that none of us have ever seen. The year 2020 will definitely be one for the history books. Towns and cities around the world are experiencing mandatory stay at home orders, businesses have been forced to close and everyone is practicing social distancing to avoid spreading Covid-19. The US Stock Market has experienced some of it’s sharpest drops in modern history. The US government has released trillions of dollars in stimulus and financial aid for families and businesses. Millions of people have lost their jobs and have been forced to file for unemployment benefits.
In light of all this darkness there have been glimmers of positive. On a daily basis you can find stories of people helping people, appreciation for our medical practitioners and first responders, some of the lowest levels of smog ever reported in our major cities, and a resurgence of wildlife.
While our world may never be exactly the same, there is a definite sense that this too shall pass. I think we all realize the strength of the human spirit and how time and again, we have been knocked down only to get back up stronger. There is no doubt that our economy will do the same. Throughout history we have seen it drop and recover stronger.
It is during these times of hardship, the true importance of having a diversified financial plan is important. Always have a safety net to rely on. Keep six months of bills in a high-interest easily-accessible savings account. Make sure you are credit worthy. While I do not condone running up your credit cards, during these times, you may need some credit to get to your next paycheck. If you have fallen on hard times, contact your creditors and mortgage company. Many organizations understand that these are trying times and will work with you. The most important financial advise I can give is to stay the course. If you are financially savvy, and willing to take the risk, you can pull out of the market during a downturn, but you will be trying to time the market to get back in. The easiest path is to ride out the storm, not stress, and realize that it has always recovered.
Above all, take care of yourself mentally and physically, so you can be there for your friends and family. It’s easy to drown in all the bad news. If you are feeling overwhelmed, find a healthy distraction. Play games, read, watch a comedy, call a friend. If you are in the fortunate position to be able to work from home, realize how lucky you are, and make each day count. If you are able to give back, there is no greater time, and plenty of need.
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