As I write this article, Colorado is transitioning from stay-at-home to safer-at-home rules. We’ve had almost 24,000 coronavirus cases and over 1,300 coronavirus deaths, our unemployment rate is currently about 11.3% and our older citizens or those with health risks are still advised to stay at home. So, while we’re trying to find the right balance between safety and an acceptable economy, life will continue to be very different — at least until sometime into 2021.
Lately, I’ve been thinking about how these difficult times can act as a catalyst for change. Many of us have a new appreciation for our health. We have an increased respect and appreciation for our healthcare providers, for our grocery workers, for our delivery infrastructure and for the millions of other people who are keeping us going. We also have an increased awareness of the value of financial preparedness.
What are some of the key financial lessons that we might learn (or be reminded of) during these times? One thing that comes to mind for me is perspective or maybe priorities. It allows us to compare the importance of having the latest luxury item with having enough to eat and having the ability to pay the rent or the mortgage. It reminds us of the importance of setting our goals and then pursuing them. For example, I’ve written before about the importance of a rainy-day fund to help us get through unexpected financial challenges. If you don’t have such an emergency fund, this is a reminder to start one for next time. Since we’re spending so much time at home together, we’re afforded an opportunity to have frequent family discussions about our finances – what to spend our perhaps constrained money on right now. The speed with which this pandemic overtook us reminds us to review our life insurance and get our estate in order sooner rather than later. The stock market dive has reminded us of the importance of portfolio diversification. What lessons we take away from this once-in-a-lifetime experience will vary, but each of us will benefit from some financial reflection before life gets back to its usual fast-paced speed.
I know that how we deal with this situation depends on whether we’re unemployed, still working or retired. If you’d like to discuss the details of your situation, we are offering a no-charge, no-obligation initial meeting that can be arranged by calling us at 970.419.8212 or by visiting our website. Meetings can be in person or conducted over the phone.
This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products. Please consult your tax or investment advisor for specific advice.