How to Financially Prepare for a Pandemic (CORONAVIRUS)

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

With the Coronavirus spreading across the globe, the United States has finally got its wake-up call with the first two deaths in Washington state, and now we must prepare for a pandemic. A pandemic is a widespread infectious disease, bacteria, or virus that sickens a large number of people worldwide. As we begin to learn how to prepare and protect ourselves from this highly infectious virus, the question that we must also address is, “how will this pandemic affect our finances?” 

There have already been rumors and signs of a recession. However, the threat of a Coronavirus pandemic is frightening even the most confident economist. 

Instead of panicking, we must focus and prepare financially. Here are few ways to financially prepare for a pandemic.

Build an Emergency Fund and Keep Cash on Hand

Preparing for a pandemic is like preparing for any other emergency like a natural disaster, power outage, or major medical occurrences or accidents. However, there is time to prepare for a pandemic because we have ample warning of its potential arrival. 

An emergency savings fund will help to cover expected and unexpected medical costs that could arise from being sick, including doctor visits, medications, tests, or even lapse in pay while out of work. Now is the time to start an emergency fund or contribute a bit more, if possible. Setting aside even small amounts to the savings account can make a big difference. Remember to “Save Something Sooner!” 

It is also a good idea to keep some cash handy when needed for emergencies. 

Check Your Health Insurance Coverage & Sick Leave Policy

Review your health insurance coverage to understand what is and isn’t covered. When it comes to paying for medication, prescription discount cards are a great way to save money, whether insured or uninsured.

Also, check how much paid-time-off (PTO) or paid sick time accumulated or available because some companies may change their policies due to the Coronavirus outbreak. Asking about the opportunity for telecommuting or the company’s remote work policy may be beneficial, as well. 

Review Your Investment Portfolio and Act Your Age!

With the stock market dropping rapidly and consistently over the past few weeks, many consumers saw their investments and retirement accounts dwindle. For the young investors with more than 10 – 20 years before retirement, waiting out this market dip may be the best thing to do. Markets move up and down, however over time, they rebound.

However, for mature investors who have less than ten years to retirement, now is the time to reevaluate your investment strategy and consider less volatile investments or accounts to protect what’s left of your principal balances. The reality is that older investors may not have enough time to recover what they need for retirement.

Regardless of age, consult with an investment adviser to discuss the right options for your situation.

Leverage Online Banking Services

Many banks and credit unions offer user-friendly online and mobile banking services to complete a wide variety of transactions from the convenience of your home. Using secure online banking services is an excellent way to manage your finances during a pandemic.

Consider setting up direct deposit for your paycheck, as well as automatic payment or bill payment for monthly bills.

Executing these strategies, as well as health tips from the World Health Organization, will help you prepare for this possible pandemic and other emergencies.