Financial advice can vary depending on your age, stage in life, net worth, etc. However, one thing that most experts say can be useful no matter what are the “Four C’s” of financial success. They are: creative, conservative, consistent, and careful. For those who may have been negatively impacted by COVID-19, remembering these basics is especially important now.
How do you use the “Four C’s” to stay on track for financial success?
- Creative – Find creative ways to earn more money. Having more than one source of income is a good way to increase your financial security. This is especially true right now for those who may have lost income due to the pandemic.
- Conservative – Be conservative with your expenses, and make sure to spend less than you earn. That means creating and sticking to a budget.
- Consistent – Form the habit of regularly saving part of your income. The experts say you need to have at least 3 months’ worth of living expenses stashed away in liquid assets, to cushion the impact of job loss, unplanned medical expenses, and other emergencies. Anyone who failed to do this, can certainly attest to its impact during the lockdowns and cutbacks from the pandemic.
- Careful – Be careful who you listen to. Not all investment advice is right for your particular circumstances. You should always do your due diligence before investing, or shifting money to different kinds of accounts, trusts, or other assets.
Just remember, financial freedom does not happen overnight. It only results from self-discipline and good money habits that are established early and practiced consistently over time. It is easy to panic and have it seem like even the best-laid plan can go awry when faced with something as impactful as the coronavirus pandemic. However, even in the worst of times, if you can practice the “Four C’s,” you can stay on track to achieving your financial goals.
How have your personal finances been impacted by the coronavirus? What are you doing to keep your financial goals on track? Please reply using the comments below.