We are all struggling to adjust to the new realities of dealing with the pandemic. Many families will need to make adjustments including financial ones. Whether or not you have both been actively involved in the family finances, this situation presents an opportunity to work together, keep a handle on where you are financially, and jointly make decisions as you navigate your way.
Here are a few ways you can work together through the crisis that will help strengthen your financial partnership.
- Gather the statements from all of your financial accounts, make a map of what you have and what you owe. Knowing what you have and where it is can provide some level of comfort because it removes the anxiety of not knowing. Having it handy will help when you need to make some financial decisions.
- Review your monthly bills and be prepared to make choices if there is a disruption in your income. Having a conversation about what changes you might make gives you a chance to consider the alternatives before you are asked to make a decision.
- Make sure you have enough in your accounts and in the bank that can be converted to cash to cover expenses for several months.
- Talk to your advisor. A good advisor will have had your investments allocated across different types all along: stocks, bonds, cash, etc. With the significant changes in the market, rebalancing will take advantage of changes in prices and enhance the effects of the recovery. Discuss with your advisor together what the right time might be to do that rebalancing.
Difficult times can bring people together. Facing this challenge as a team can strengthen your relationship and keep you both involved.