5 Proven Ways To Build Wealth Amid The COVID-19 Pandemic
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Coronavirus is taking a significant toll on the global economy. About 22 million Americans were facing unemployment by April 2020 according to The Washington Post. Many people are finding trouble paying their monthly bills.
However, fortunate ones still having a source of income or with enough savings don’t have to worry much. During COVID-19 pandemic is a good moment to boost your financial situation.
Here are a few proven ways to build your wealth right now.
Increase retirement fund contributions
If you had always looked forward to investing in the stock market, this is the right moment.
The market is down making stock prices to be at their lowest. This gives you a wonderful opportunity to buy low now and sell high in the future.
Invest comfortably now to make significant profits later when the market recovers.
The amount to spend depends on some factors. Save enough to earn a full match if your employer contributes to your 401 (K) plan.
Doing this allows taking advantage of this free money.
Only invest using the money you are not using anytime soon.
Additionally, avoid investing savings when worried about losing your job soon. You are likely to pull the cash out from the investment sooner.
The pandemic has made the stock prices fall to their lowest right now making it a great moment to invest.
However, it is a terrible moment for those planning to withdraw their funds.
The rule of thumb is to ensure that you’re comfortable before investing so you won’t need the money soon.
Invest in government land
Amid the pandemic is a great moment to invest in government land.
You can easily find land for sale in Nevada online while maintaining social distancing. Investing in Nevada land is hedging your future against inflation, recession, and the stock market.
When you purchase land now, you enjoy low down payments, no qualifying financing, and low monthly payments.
The beauty of investing in land is freedom from worrying about legal requirements and other regulations that come with being a landlord.
There is no worry about rent control or facing the trouble of evicting a defaulting tenant.
Raw land in Nevada is cheap with low minimum cash requirement. Few investors are venturing into land at the moment making competition low.
So, you get an opportunity to build your wealth cheaply.
Revamp budget and cut unnecessary expenses
Although you have enough to keep you comfortable throughout the pandemic, it’s a good idea to double-check your expenditures.
Track your spending to know where each dollar goes. This allows combing through expenses to realize areas where you can save.
The chances are high that your spending will reduce within a few days.
Now that you are staying at home 24/7, there is no more going out for dinner or to the club after work. Making these budget cuts will save you a significant amount.
You should also consider unnecessary expenses including subscription services you are no longer using.
During this moment, look for online stores offering free delivery. Only stick to expenses on only those items and services that you can afford.
Cut back on expenses as much as you can to save more. Aim to spend on essentials including groceries and utilities to save more on other items since each dollar counts.
Have a healthy emergency fund
You need a robust emergency fund today more than ever. Having a secure job today means that you are comfortable paying all your bills.
However, you can’t be sure of what is going to happen the next moment.
You need an emergency fund to avoid racking up debt or tapping into your retirement savings when faced with a job loss or unexpected expense.
The emergency fund should cover about three to six months of general living savings.
A good way to save is to consider high yield savings account to earn higher interest with unlimited withdraws.
This will allow your savings to grow faster. The emergency will ensure that you continue living comfortably while you look for other ways to earn income.
Pay debts
Regardless of whether you are out of work or still working, bills will keep coming.
You have to make a tough choice on the bills to pay during COVID-19. It is a bit tricky to prioritize on the nature of debts to pay first.
Housing and related bills are the biggest cost for many households.
Although eviction freezes are in place at the moment, you are likely to end up paying all accrued bills at once.
Wrapping up
Economies everywhere are not in the best shape currently but there is hope that things are going to improve over time.
Building your wealth amid the current trying moment is a good way not to waste the COVID-19 pandemic.
The above four tips will allow you to take advantage of this trying moment to improve your finances and build wealth that lasts.
Category: Personal Finance
