Have you been following good advice on COVID-19? It also applies to your finances

Extraordinary times ask for extraordinary measures, and more or less everyone is making their part to keep safe from all that is happening.

But looking after your health overall also means keeping an eye on your financial health. After all, when you get through to the other side, you will want to be in as good a situation as possible to go on with your life.

And so,  while you take  care of your health keep in mind these measures and get them working for your finances as well.

1 – #stayathome

One of the most important directions out there is the recommendation to stay home. But as for the implication is that you should be socially isolating, for your money things are different.

Because by now you should have realised that your money’s home (at least for part of it) should be producing some returns through investment products, which you can conveniently access from your own home.

While not everyone is able to be working remotely, thanks to technology you can remotely get your money to work.

It may be counterintuitive at this point, but the fact of the matter is that historically it still pays off to keep invested.

2 – Wash your hands

Which is to say, you should keep your portfolio clean. Now is the time to be rebalancing your portfolio as best you can so you are safeguarded against assets that are more likely to take a big hit.

And understand we are not talking about a complete purge – just have good financial hygiene to keep good diversification levels.

If you are worried about exposure to the stock market, a bigger allocation to debt-based products could counterweight your uncertainty levels.

But even as you keep your money working, it is always good planning to…

3 – Keep emergency supplies

At this point we are heading to your emergency fund.

An emergency fund is one of the staples of a good financial plan. Unforeseen events are actually a certainty, the only question is what they will be and when they are going to appear.

And as you know and feel, uncertainty is the word of the moment.

But this also speaks to point number 1 – the same way that having emergency supplies doesn’t mean supermarket hoarding, having an emergency fund doesn’t mean cashing in all of your investments.

If it provides you more psychological tranquility, you can choose to reinforce it, but don’t go overboard. And there are always investments that are more liquid than others.

4 – Don’t constantly watch the news

Yes, the world is more connected than ever before, and we do live in a 24-hour news cycle. But being constantly plugged to the news, you may get caught in a vicious cycle that doesn’t actually keep you more informed, but just more startled.

This remains true with the way markets and the economy are performing. Resist the temptation, keep thinking long term, and collect just the amount of data necessary from official sources to make an informed decision which will allow you to sleep at night.

Otherwise you may give into panic and give in to your emotions. And speaking of quality information…

5 – Don’t take random advice from the internet

Being more connected also brings new risks. The amount of disinformation is aplenty, whether by ignorance or ill intention.

So it is always crucial to stick to official and trusted sources, otherwise you may find yourself in unnecessary risks, whether of infection or financial loss, and that includes your digital safety. Be mindful of your passwords, never share your authentication credentials and watch out for phishing scams.

In these times, information is currency more than ever, and it is buying your attention. You just need to make sure that you are making quality purchases that won’t put you in danger.

Bottomline is…

Both in health and in finance, the important thing is to follow quality advice, follow a plan, and stay safe. And as with any good idea, sharing it makes it better.

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