During this unprecedented time in global history, the coronavirus outbreak has paved a pathway of uncertainty. We face what could potentially change how schools are operated, businesses are conducted and day-to-day routines are managed. Though this time of uncertainty can be nerve-wracking, especially for students and young adults who may graduate and face a major economic downturn, there are several resources which provide financial advice to mitigate the effect of economic stress. For everyone, this unfamiliarity exemplifies how important it is to be aware of the resources that can serve as a guide to come out of this “work from home” era stronger.
One of the most common questions many have is, “How can I prepare for something like this in the future?” Though there is no knowing when something like this could happen again, one way to prepare is to set some of your savings aside for an emergency fund, or an emergency savings account. An emergency fund can keep you from going into debt when something unprecedented happens.
Don’t feel like you need to overload your emergency fund right away. Start small, and save over time. You want to make sure your emergency fund is not taking precedent over more pressing expenses, like rent. A general rule of thumb is to keep between three and six months’ worth of living expenses in your emergency fund to prepare for the unknown. However, some people are comfortable with more, and some are comfortable with less.
If starting an emergency fund is not immediately feasible for you, there are several other tips you can consider when managing your money during uncertainty, like reviewing your monthly expenses and overall budget.
Reviewing your monthly expenses is especially important when your source of income may be strained, or completely cut off. For example, if you have both a Hulu and a Netflix account, see which subscription you use more frequently and consider cancelling the one you use less frequently. This can help to reduce your monthly expenses for the time being and keep more cash in your pocket.
Re-evaluating your budget and reducing your essential spending to only what you need is another important tool to navigating economic uncertainty. Look at what supplies and food you already have in your home or apartment. Can it last you at least two weeks before having to buy more? Aside from what will last, make a list of the things you need that will not last as long, like produce and perishable items. Do your research on the least expensive brands to purchase and calculate how long the amount you can swing with your budget will last you. Try to shop only when you need to and cut non-essential expenses as much as possible. A time of uncertainty is the time to be picky with your budget; you want to make the most of less.
As Syracuse students, we have access to several resources that can help navigate the coronavirus emergency. On the Office of Financial Literacy’s website, there are a plethora of resources for understanding the impacts to your financial aid and student loans, access to affordable food, navigating rent and utilities and utilizing government resources. These resources are available to help you mitigate the implications of the coronavirus on your financial wellbeing.
No matter how the next few months play out, try not to worry! Use the resources available to you through and don’t be afraid to ask questions. If you have any personal finance related questions, free help from the Smart Money Coaches is still available, virtually! Coaches are holding virtual appointments, and are always available via email for questions about your personal finances. Schedule an appointment through Orange Success and a Smart Money Coach can help you navigate the next few months! You can also check out the Office of Financial Literacy’s Instagram and Twitter for quick money tips.
Written by Melissa Marchetti ’20, Maxwell School of Citizenship and Public Affairs, Smart Money Coach