{"id":3176,"date":"2020-09-18T23:45:09","date_gmt":"2020-09-19T06:45:09","guid":{"rendered":"https:\/\/www.simplifimoney.com\/blog\/?p=769"},"modified":"2024-11-18T10:21:27","modified_gmt":"2024-11-18T18:21:27","slug":"how-to-get-finances-back-on-track","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/how-to-get-finances-back-on-track\/","title":{"rendered":"Finding a \u201cNew Normal\u201d: How to Get Your Finances Back on Track after COVID"},"content":{"rendered":"\n

The coronavirus has upended people\u2019s personal finances<\/a> and lives. During mandated shelter-in-place orders many of us put things on hold to deal with the pressing issues at hand: keeping ourselves, our families, and our communities safe. <\/p>\n\n\n\n

If you got off track with your budgeting or financial goals in the last few months, that\u2019s OK. We\u2019re swimming in uncharted waters here and you\u2019re not alone if you\u2019ve let a few things slide. <\/p>\n\n\n\n

But now, as states and communities lift shelter-in-place orders, the \u201cnew normal\u201d may also mean something new for your money. Here\u2019s how to get your finances back on track. <\/p>\n\n\n\n

How to Get Your Finances Back on Track: First, Squirrel Away Extra Savings<\/h2>\n\n\n\n

If you\u2019re still working, chances are you may be spending less money than usual. Shelter-in-place orders drastically cut many household\u2019s commuting, childcare, travel, and entertainment expenses. And while you might have longer grocery store receipts, overall, you could have more money left over each week than before.<\/p>\n\n\n\n

Increasing your spending as stores and restaurants open up isn\u2019t bad\u2014especially if you want to support your local community. However, unless you\u2019ve banked three to six months of expenses, start or rebuild emergency funds<\/a>, first. <\/p>\n\n\n\n

Add a goal tracker to your budgeting app to watch your progress. Remember, even if you\u2019re saving a little bit at a time, you\u2019re still making progress. <\/p>\n\n\n\n

Look Into Refinancing<\/h2>\n\n\n\n

For those with the means, lowering interest rates<\/a> have also opened up new opportunities. Low mortgage rates could make this a good time to buy a home<\/a>, or refinance your mortgage if you\u2019re already a homeowner. Similarly, low rates could lead to savings if you refinance auto loans or consolidate credit card debt<\/a> with a low-rate personal loan. <\/p>\n\n\n\n

Refinancing student loans can even be a good idea. However, you\u2019ll have to refinance with a private loan and will lose access to federal student loan protections, payment plans, and forgiveness programs<\/a>. <\/p>\n\n\n\n

List Your Bills Based on Priority<\/h2>\n\n\n\n

If you\u2019re having trouble staying on top of bills, make a list of all your necessary monthly expenses. (If you already budget<\/a>, this should be fairly easy to do.)<\/p>\n\n\n\n

List your basic variable living expenses, such as food and utilities, and your fixed monthly bills (e.g., a rent or mortgage, loans, and subscriptions) and prioritize each from most important to least. For example, secured loans<\/a>, such as an auto loan and mortgage, may be at the top of your list. Missing payments could lead to the lender repossessing your vehicle or foreclosing on your homes. Similarly, rent and utility payments may be priorities even if they\u2019re not secured debts. <\/p>\n\n\n\n

Once you have your priority bills paid, aim to pay as much as you can and at least the minimum amount due on less urgent bills like your credit cards. It will help keep your debt at bay and your credit score up while you sort through bigger priorities. <\/p>\n\n\n\n

Stay up to Date on Federal, State, and Local Protections<\/h2>\n\n\n\n

Knowing what your creditors can and cannot due is also an important part of managing your finances. <\/p>\n\n\n\n

For example, the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act automatically stopped federal student loan payments<\/a> and changed the interest rate to 0% through September 30, 2020. Borrowers could choose to keep making payments if they wanted, but you can also set that money aside for other bills or simply to build your savings. <\/p>\n\n\n\n

The CARES Act also put special credit reporting rules into place. If you have an account that was current and your creditor gave you an \u201caccommodation,\u201d such as allowing you to miss a payment or lowering your monthly bill, the creditor can\u2019t report you as late if you stick to your end of the agreement. The change will last until 120 days after the end of the COVID-19 national emergency. <\/p>\n\n\n\n

Similarly, local, state, and federal laws may give homeowners and renters different levels of protection from foreclosure and eviction. The Eviction Lab at Princeton University has a database<\/a> where you can search for policies that may help you stay in your home, even if you can\u2019t afford your bills right now. <\/p>\n\n\n\n

Continue to Plan for the Future<\/h2>\n\n\n\n

While you may want to be extra cautious of your financial situation and plan for the worst, don\u2019t lose sight of your long-term goals<\/a>. If you check your budget and find you\u2019re able to meet your current needs, save \u201cjust in case,\u201d and have money left over, you could still pay down high-rate debts, invest in a retirement account<\/a>, or treat yourself to a safe vacation. Pandemic or not, personal finances are personal, and you\u2019ll need to decide how to manage your money based on your situation and goals. <\/p>\n","protected":false},"excerpt":{"rendered":"

The first few months of COVID-19 lockdown was a blur. Here\u2019s how to get your finances back on track now.<\/p>\n","protected":false},"author":59,"featured_media":3048,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"How to Get Your Finances Back on Track after COVID | Quicken","_seopress_titles_desc":"The first few months of COVID-19 lockdown was a blur. Here\u2019s how to get your finances back on track now.","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[69],"tags":[],"class_list":["post-3176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2020\/09\/SimplifiFindingNewNormal2.jpg","_links":{"self":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/comments?post=3176"}],"version-history":[{"count":4,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3176\/revisions"}],"predecessor-version":[{"id":5530,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3176\/revisions\/5530"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media\/3048"}],"wp:attachment":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media?parent=3176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/categories?post=3176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/tags?post=3176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}