Proactive Ways to Protect Your Finances During COVID-19

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The ability to get financial freedom and security now and in the future is everyone’s dream. But with the precarious financial situation brought about by the COVID-19 pandemic, there is great financial uncertainty, declining sales, and mandatory closures of institutions and businesses.

  1. Make Adjustments to Your Investment Portfolio

The current economic downturn has many investors tempted to cash-in and get out before things get worse. This is a common reaction at the onset of a recession, but it’s an extreme measure most people come to regret. Instead of taking such drastic actions, consider modifying and reorganizing your investment portfolio to minimize risk without cutting huge losses.

For example, those who manage their own investment properties might be worried about their ability to collect rent and keep up with maintenance due to the ongoing pandemic. Selling the property seems like a good idea, but it’s likely going to be sold for much less than its true market value. Rather than willingly take such a hit on your investment, consider restructuring the situation to reduce the risks and uncertainties.

The best way to do this is to rely on a property management service to take over the day-to-day responsibilities that come with owning investment properties. Leading Orlando property management companies and those in other cities hit hard by the sudden spike in job losses are quickly becoming a real estate investor’s best friend. They help to streamline rent collection, initiate evictions when necessary, address maintenance concerns, and find qualified renters to fill vacancies. These benefits outweigh the costs while helping investors to avoid losing money in a fire sale.

A downturn in the economy prompts many to sell your stocks or property. But such investments will fetch a low price. Don’t get tempted to sell, instead talk to a professional property manager or financial advisor for proper advice.

  1. Know Your Options When Dealing with Creditors

If you’re unable to pay your monthly bills it’s advisable to work out an agreeable deferred payment mode with your creditors. You can seek for options that may be available from the government’s utility companies, and financial institutions. These entities may have special considerations, new programs, and grace periods that can help you in handling your small business loans, home equity lines of credit, rent, or mortgage payments.

The Coronavirus Aid, Relief and Economic Security or CARES Act is an example of such a program by the federal government. The act facilitates financial aid programs such as the Economic Injury Disaster Loans, SBA Express Bridge Loans, and SBA Debt Relief.

  1. Seek Access to Digital Banking Services

The stay-at-home order and social distancing necessary to overcome the COVID-19 pandemic may make it impossible for you to access your financial institutions. The call wait times may also be longer than usual. As such, you should sign up on your financial institution’s online platform or get their latest app. You can use such platforms to access their financial services online.

  1. Avoid All Scams

The ugly truth is scams are on the rise due to the COVID-19 pandemic. If you want to support any needy person during the pandemic then channel your aid through a reputable institution or state entity.

Also, don’t give out your social security details to get promised stimulus checks or aid. People prompting you to do this may be seeking your details and they may use them in malicious ways.

Stay alert and informed always to sail through this pandemic without making hasty decisions that may lead to great losses.

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