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Plan Better : 5 Things You Can Do During Quarantine to Protect Your Financial Future

As if the quick spread of coronavirus and the pressure of social distancing weren’t enough, there’s a third factor of this pandemic that has many people concerned: the economic impact. Businesses around the globe have shuttered, millions have lost their jobs, and stock markets are dropping. Even with stimulus packages

Observing all this economic ambiguity can be frustrating and even alarming, even if you’re fortunate enough to have not lost a job or source of income.

Luckily, there are moves you can make now—while you’re trapped at home under quarantine—to protect your finances, even with an uncertain economic future. Hopefully the coming months won’t mean job losses or cutbacks for you and your family (if they haven’t already happened), but if they do, smart financial planning can provide a small cushion for you. And now’s the time to plan, too, while you’re sitting at home with a less hectic schedule than usual. Take these actions now, and you’ll thank yourself later

Establish an emergency fund

If you don’t already have an emergency fund, now’s the time to make one. If you have money set aside for travel or non-essential spending, consider earmarking it for emergencies instead. Any amount you can tuck aside now specifically to help support you and your household during an emergency will help you later.

Talk about money with your family

Money stress is real, especially now, but learning how to talk about money while you have time to sit down as a family can help you manage financial stress better in the future. With younger kids, explain how market fluctuations are normal; with older kids, be frank about any negative financial impacts you may experience and discuss ways you can save as a family.

Consider insurance options

Some insurance rates may have fallen, and some car insurance providers are offering discounted rates now that people are on the road much less. Contact your insurance providers to see if you can get a discount or lower rate, or compare rates at different providers.

If you have time on your hands, consider purchasing new insurance now, as well. Life or long-term care insurance can take a lot of time to be approved for, depending on which provider you use, so starting now while you have the time can help the process feel less stressful. It’s also possible to get life insurance quickly with companies such as Sun Life , Prulife UK or Insular , so you can easily check another thing off your quarantine to-do list.

Get your credit reports

If your lockdown is putting more time in your hands than usual, check another financial to-do off your list and request your credit reports. Read over your reports carefully for any suspicious activity, and if they reveal some less-than-ideal borrowing habits in your past, brainstorm ways to rectify them and improve your score.

Create a budget

Regardless of whether you already have one, now is an excellent time to take a close look at your spending. If you expect (or have already experienced) loss of income, adjust your budgeted spending accordingly wherever possible. Money may be tight going forward, so saving wherever possible will only help you in the future.

If you have the time and interest, you can even consider making a quarantine budget to help guide your spending during lockdown or social distancing. With so many common sources of spending currently unavailable—think travel, eating out, and entertainment—your household spending is likely to climb once businesses begin reopening, so plan accordingly.

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