By Christopher Cervantes, RFP

EVERY morning, we always have a breakfast meeting via Zoom in Cardinal Buoy Financials.

This is my way of leading them to ensure that we will still be able to commit to our mission despite the frightening situation that we are currently in. Then one morning, while at one meeting, my phone was ringing. I did not answer it to keep my mind focused on the meeting, but it was already the third attempt, so I excused myself from my team and decided to pick up the call.

The call came from a woman. She was one of the participants of a seminar I conducted in the Visayas, and she started the conversation shouting, “Thank you, Sir!”  I was confused at the beginning, but I allowed her to tell me her story.  After listening to her, I fully realized that it was indeed something to be grateful for.

nShe and her husband owned a business but it was affected by the pandemic, and they opted to close it down.  They immediately started liquidating their investment to ensure that they will have more than enough emergency funds.  Since the business was their only source of income, her husband was forced to go back to the corporate world to support their family’s needs.

Yes, they are taking the hit in the market but grateful that a few years back, they started managing their finances by making sure that they would be able to invest and save every month after attending a session with me and reading my books.

Before she called me, she reread my books, and that motivated her to reach out to me and thank me because she realized that everything that is happening now and the things they needed to do was already discussed in my books.

Now, they are not earning well but they are still confident that they will survive this pandemic due to their preparation before it even happened.

This pandemic has been brutal to everyone. It is stressful not only on our health, but also on our emotional state.  Another major cause of stress for you right now might be your finances. Nowadays, many have lost their jobs.  If you are still employed or still running a business, there is a lot of uncertainty about the future of work and the economy that you cannot guarantee if you can still have that source of income.

Like the woman who called me, no matter where you are on the spectrum, there are things that you can do to take care of your financial health and manage your money.

The first is to determine your current financial situation.  Dedicate a meaningful time to go through all of your financial accounts and see what you can save.  It is good to know where you can get cash in even your income stops coming. It is like a person suffering from fever who checks his temperature once a day, which is not a good idea. Knowing your financial situation will help you plan what kind of budgeting you will need to employ, what to give up and what to prioritize.

Another thing is to keep your debt under control. Even debt with zero-percent interest is still a liability that you need to pay.  If you have credit card debt, try to call your credit card company to negotiate to lower your rates.  Avoid getting new debt. It is tempting to reply to all the text messages offering you loans with low interest. It may give you problems in the long run.

Keep eating at home, and it does not mean ordering food outside.  Just imagine how much budget you can save if you will cook your meal. If you have kids, this is your chance to teach them how to do home cooking.

You may also lower your monthly recurring expenses.  Since you stay at home most of the time, maybe it’s a good idea to cut your mobile plans and use app messaging to communicate.  If you are keeping multiple vehicles, consider selling the car that you do not use too often, it will save you not just fuel, but also car insurance costs.

If you have the means, keep saving and investing. There are online banks that offer high-interest rates these days and you might want to take advantage of them. It is also good to remember that when the stock market is down, investing in this period means your money can go farther as long as you treat it as a long-term strategy.  And of course, to increase your means, doing some side hustles will help a lot, especially if it will mean not leaving the comfort and safety of your home.

No one is immune to what is happening right now. The vaccine would help our immune system, but having a sound financial plan is the only way to help you stay afloat during these trying times.  Many of us have given up the much comfort that we used to enjoy before the pandemic. Still, it is an excellent emotional option to be grateful despite all the things that are happening.  After all, this pandemic is not just about money.  Always find reasons to be thankful even if your finances take a hit.  Money is essential, but remember that it is not everything.