With the coronavirus outbreak top of mind for people around the world, we’re closely monitoring the economic impacts. As events unfold, the endless news cycle is creating a keen sense of urgency. That urgency is certainly warranted regarding your health: wash your hands, avoid large gatherings, and stay home if you’re feeling ill. When it comes to your finances, however, take a step back. As financial planners who have weathered many financial crises over the past 41 years, we strongly encourage you to keep a long-range view of your affairs. Here are some suggestions to help individuals and businesses stay prepared and be proactive as the coronavirus and the economy continue to make headlines.
1. Lean on your trusted strategic advisor.
Whether you’re looking at your personal accounts or your business cash flow, times of crisis highlight just how critical it is to have a long-term relationship with a trusted strategic advisor. An advisor who knows your assets, your cash flow, and your business can offer guidance and help you make decisions with the big picture in mind.
2. Look six months out.
Consider that economic impacts may take time to show up in your finances. Do you have large spending decisions on the horizon? Come up with a workable cash flow plan that you can stick to and rely on your advisor for assistance.
3. Be prepared to work from home.
If you’re running a business, encourage your teams to work remotely if possible. Do you have tools that will allow teams to collaborate remotely? Is your personal home office set up in a way that would enable you to be productive working there?
4. Consider ways to retain and support your customers.
Depending on your industry, you may want to look at discounts or special offers that will help your customers get through tough times. By planning ahead, you’ll be prepared if you need to roll these out.
5. Know your numbers.
Again, this applies to businesses and personal finances. What’s coming in? What’s going out? What debts are you servicing? Keeping your finances organized is absolutely critical to staying proactive and making informed decisions.
6. Review your strategic plans and goals for the year.
Do you need to make adjustments? Were those plans made on assumptions that are no longer valid? Review your plans with your trusted strategic advisor.
7. Stay on top of news about economic relief.
While much of the news is talking about proposed measures, it’s important to be aware of relief that the states and Congress ultimately enact. Follow us on Facebook, Twitter, and/or LinkedIn, where we’ll be posting important updates as they transpire. If you’re not already on our monthly email newsletter list, subscribe to using the form below.
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Above all, remember that the economy will recover over time. While it appears as though we’re entering a difficult period, don’t give up hope. Stay true to your long-term plans, adjust as needed, and seek advice from your trusted strategic advisor. Call us at any time to schedule a consultation.