Financial Tips for Turbulent Times
Make a plan to get you through difficult financial times.
Whether you're an older worker with seemingly few options to recoup significant investment losses, or a younger worker with minimal or no investment savings at all, don't let a difficult financial climate scare you into not taking any action at all.
Start now to make a plan
Take stock of your situation and formulate a plan by starting with these basics:
- Pay down debt. Reduce the chokehold that credit cards have on your budget. Pay off the highest interest-rate card first, and then apply that payment to the next-highest interest-rate card. Stop charging.
- Refinance your debt. Shop for lower interest rates to reduce the amount of interest you pay on your home, auto, or credit card accounts. Consider refinancing for a lower rate—especially now. Skyward can help you decide your best course of action. One solution is Skyward's Mastercard account, which has no cash advance or balance transfer fees making it easy to refinance your credit cards without any upfront costs.
- Spend less. Identify needs vs. wants, and then set priorities. Many so-called needs actually are wants in disguise.
- Rebalance your stock portfolio. Do your investment choices reflect your risk tolerance, investment strategy, and stage of life?
- Increase your contributions. Many stock prices are at low. If possible, bump up your contribution.
- Keep some liquidity. Consider stashing some cash, perhaps three to six months' of living expenses. Skyward Credit Union offers a variety of savings and checking accounts at above market rates designed to meet your needs, and are insured to at least $250,000 by the National Credit Union Administration.
- Diversify. Spread your wealth among a variety of investments: domestic, international, financial services, technology, health care, and so on.
- Use dollar-cost averaging. By having just $50 each paycheck automatically directed to a mutual fund, your contributions will purchase more shares when the price is low, and fewer shares when the price is high.
- Work longer. If you're close to retirement, consider hanging on to your current job longer than planned, if you can. Or, secure part-time work after retirement. This reduces the number of years you'll dip into your investments and helps build additional savings.
Skyward is ready to assist you with your financial wellness. We are dedicated to helping you during the good times as well as the tough times. Contact us today at 833-759-1941 to see how we can help you.