This year has shaken our whole world. Nearly everything has changed because of Covid-19, like how we go shopping for groceries, how we go to work, even how we spend time with others has changed. This global pandemic has affected everything, including how we should look at our finances.

These lessons are all things we can start doing now in case we have another situation like Covid-19 that can heavily impact our livelihoods.

Stay Stocked Up on Necessities

Remember back in March to May when everybody went out and bought basically everything from the grocery stores? Toilet paper, hand sanitizer, canned foods, and everyday essentials were purchased in a panic. There was a massive wave of people buying and hoarding supplies, leaving others with nothing. Eventually, it eased up, but many people had to get creative to replace essentials.

In case something like this were to happen again, rather than rushing to the store to buy everything you can find, start building a surplus of supplies at home. Have a month of supplies at home you can use in case things go bad. Buy a bulk item of toilet paper, fill your pantry with long shelf life foods, and have plenty on hand. Then, as you use these things throughout the weeks and months, buy more to fill your stock back in.

This might cost a little bit more at first, but once the initial buying is done, it will just become a regular part of your shopping and not raise your bill that much.

Rethink your Emergency Fund

Traditionally, the emergency fund was used for short term emergencies. Losing a job for a few months till you get back on your feet, a broken down car, or a medical bill. The general rule was to have around $1,000 in an emergency fund while others said enough to cover three to six months.

From the pandemic, many people have been unable to work now for six months. Emergency funds need to be built even larger than before, in preparation of another long stretch of no income. Whether you don’t have an emergency fund or have a smaller one, think of saving up over six months worth of money to stay safe.

Why not earn extra interest on your emergency fund while growing it? Pioneer’s Special Purpose Savings account is perfect with a higher interest rate to help your emergency fund flourish.

Decrease Your Monthly Costs In Case of an Income Dip

While many lost their jobs, others kept theirs but encountered interruptions to their incomes. Some people were temporarily laid off, others were furloughed for days or weeks, and a few had to take cuts in their pay to stay working. Whether it was a short term loss of income or a decrease, this change likely impacted how they paid bills.

Especially for people who don’t have a lot of savings or most of their income goes to paying bills, these income dips are dangerous. It should be a priority now to decrease monthly costs in case your income does decrease. Pay off debts and find areas to save monthly to stay safe.

Have a Strong Credit Score In Case You Need a Loan

Even if you have a large emergency fund and decreased your monthly expenses, there might be times you find yourself not able to make ends meet. If another global disaster were to strike, even the most prepared might find themselves in need of help.

If you don't fully understand your credit score or how to raise it, we can help. Our Credit Checkup can help you understand what your credit score means, what is on your credit report, and how to best raise your credit score. You'll partner with a Pioneer team member to walk you through it and create an action plan with you.

Having a strong credit score can give you flexibility in paying bills by letting you apply for a loan as you need it. What’s great is there are different types of loans for different situations. Pioneer’s Signature Loan is great for a basic loan situation to pay off expenses in the short term. Just need a tiny bit of flexibility? A VISA^® credit card through Pioneer could just be what you need. A HELOC through Pioneer lets you utilize your home’s equity to pay bills with a longer draw period, letting you pay for what you need to know, then pay it off much later.

Learn More About A HELOC!