Sadly, we’re all still affected in different measures by the the post pandemic effect of covid on the financial economy worldwide. And following the recent outcomes of the financial market, we believe some pertinent financial questions continually bug your minds.
In this piece, the head trader at wealthpress, Roger Scott, will provide relevant answers to these financial questions. He’s also an entrepreneur and system developer; and if you want to also know how to clear up a credit card debt, you should read to the end.
How can individuals with high-risk flair take control during a time of market volatility?
Frankly, I’d advise you to control what you have power over. During a time of market volatility, you can try to secure a high-interest certificate of deposit (CD) and engage in CD investment before the rates drop.
You can also look around to discover a high-yield savings account. Increasing your 401(k) contributions and maxing out an IRA will make a difference. Alternatively, try out a 529 plan investment.
What do you have to say about budgeting, especially during times of recession?
Good question. It is best to have an emergency fund. I’d recommend setting aside 3 – 6 months’ worth of expenses.
An agelong hack that works: Implement the 50/30/20 budget. About 50% of your monthly income will go into your personal needs, about 30% and 20% will be set aside for wants and savings, respectively.
Make sure you have an emergency fund. In retrospect, we suggest saving three to six months’ worth of expenses.
It’s also vital to use the 50/30/20 budget — 50% of your monthly salary goes toward needs, like groceries or rent, 30% to wants, and 20% to savings. If the recession is severe, try to cut off the 30% budget for wants and mend into the other sections.
How can we prioritize different expenses in an emergency?
Let’s see… No matter what you do, it is necessary to settle the high-priority bills, such as rent and mortgage. Do this early to protect your credit score.
However, if you can’t reach the deadline, contact the company first if the company is flexible. Some banks and credit card issuers have started leniency programs and are forfeiting payments and interest. Be alert!
We know this is impossible, but hypothetically speaking, Roger Scott, if you happen to have a credit card debt? How would you clear it up?
There has been a significant drop in credit card rates, but it is the highest compared to other forms of loans.
Consider a balance transfer card to free up cash flow. You need excellent credit to be qualified, though there is about a 3% – 5% charge fee, so budget it. If your card still has debt when the promotional period ends, you’ll have interest on the remaining debt.
Also, you can repay debts through personal loans. They combine multiple debts into one payment with a lower interest rate compared to what credit cards charges.
Any financial tips for soon-to-be retirees?
If you are approaching retirement, a vulnerable stage, there are strategies for wealth preservation and building. Contrary to what you might think, you don’t skip investment till your retirement time.
Rather, see yourself as a long-term investor with money should last for about 20 and maybe 30 years more. To balance the effect, I’d suggest you have accessible cash through savings of safer investments.
The safe funds can be bonds that can pull you through the first few years of your retirement. It is worthwhile to take less risk at this stage.