Money has been quite the issue during these in the past few months. Unemployment has reached 38.6 million in the United States. The stock market is tumbling down into a hole. Did you get your money from the government?
I am not a money expert. Thankfully, I am a little more financially stable than average. I work in healthcare so I am considered an essential worker. Even though my hours are cut I have paid leave to cover and I am not completely unemployed. I have been figuring out my financial journey little by little over the years. I hope this transparency helps in your journey.
Before I tell you the money moves I have been making in the last few months, let me make a disclaimer. I have an emergency fund for at least 3 months, I am contributing at least 11% to my 401k and Roth IRA and have most of my money in high yield savings accounts. If you haven’t got those down yet, that’s where you need to start. You will thank me later. Read my post “The First Baby Steps To Financial Health” to navigate getting started.
Without much ado here are my latest money moves.
Opened CDs (certificates of deposit)
Previously, I had my money solely in high yield savings account until the APY (average percent yield) started sliding nationwide. Putting money in a CD freezes the APY for a set about of time. Whatever, APY was promised will stay the same until the money matures. If you have money that is sitting around and you don’t plan on using it for a while I recommend putting it in a CD. Read more about CDs here.
Opened another High Yield account
Experts say that you should have your emergency fund divided between two different banks. If something happens to one, there’s still the other. Of course you should always chose a FDIC insured bank. Is your money in a high yield account? It should be. This article tells you about the best high-yield banking options out there. My favorite will always be Ally Bank.
Bought a bed
Eventually, my sister and I will have our own house. Every once in a while, I make purchases toward this future house so that the expense don’t hit us all at once. The bed was also on sale and my sister genuinely needed a new bed (hers didn’t even count as a bed anymore). We honestly love the bed. It’s so comfy!
You might look into buying something that you’ve been needing for a while like a new house or car while the prices are slumping. Provided that you have the money to do so. Do not overextend yourself. Now is just not the time.
I have been hesitant to dive into trading stocks. Mainly, because I didn’t realize it was so easy. After a quick tutorial from my brother, I was a little more confident. I was surprised to discover that there were so many stocks under $10. Armed a perusing of current news and the advice of Warren Buffet to “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.” I threw some money at the stock market. Later, my dad sent me this other brilliant article which now guides my stock trading principles. Do you want to try it? Here’s a free stock for those of you starting out for the first time.
Gave to those who need it
I heard that Fusion, a ministry in San Bernardino, is doing their part to reach out to the homeless community during the pandemic. You can argue all you want that they should be staying home, but they are kind of first responder. The homeless are cut off from basic necessities such as food and showers. Most of the resources available, such as soup kitchens and shelters, are shut down due to the pandemic. This work is important. I immediately found it in my heart to donate. ADRA is another ministry that is responding to COVID-19 and a great place to give. You should find something to give to as well.
Are you doing anything interesting with your money during these (trigger warning) unprecedented times?