1. Stop fretting over the stock market

Worried stressed businessman in suit shocked by bad news using laptop
fizkes / Shutterstock

After a long period of stability, the COVID-19 pandemic tossed the stock market into complete disarray. It’s a volatile time to be an investor, to be sure.

Instead of stressing out, just accept the situation and remember that — for most people — investing is all about taking the long view. You want to see your money grow over time for retirement and other big goals.

If you need help managing your investments in an unstable market, consider using a robo-advisor like Betterment. These services will automatically adjust your portfolio to any dramatic changes over the next few months so you don’t have to.

Simply add Capital One Shopping to your browser, and shop like normal. This free tool does the work for you.

Install Capital One Shopping

2. Clear as much debt as you can

Credit cards for  payment  products with your business.
ShutterOK / Shutterstock

Paying down debt is perhaps the most impactful way to protect your family’s finances — especially if high-interest debts like credit cards are draining more of your cash each month.

So long as your credit score is in decent shape, you should consider consolidating your debts with a personal loan.

With a good debt consolidation loan, you can replace all of your debts with a single loan at a much lower interest rate.

That will save you money and give you some breathing room. A free service called Credible will allow you to quickly compare quotes from multiple lenders, making it easy to find the best rate possible.

3. Find ways to cut costs

Asian woman plan to cut a bill into pieces.
Rachata Teyparsit / Shutterstock

The pandemic has already forced us to cut back, whether we like it or not.

Air travel, sporting events and even dining in at restaurants may not be in the cards this year. But there are still many other ways to cut household spending, like getting a cheaper cellphone plan or simply using a cash-back app when you shop.

Better deals are out there; you just have to look. With a little comparison shopping, you may be able to save $1,000 per year on homeowners insurance. Many people are severely overpaying for auto insurance, too.

Join Masterworks to invest in works by Banksy, Picasso, Kaws, and more. Use our special link to skip the waitlist and join an exclusive community of art investors.

Skip waitlist

4. Refinance your mortgage

Father Giving Son Ride On Shoulders Outside House
Monkey Business Images / Shutterstock

Want to really lower your bills? Then it’s time to take a closer look at your mortgage.

Thanks to the rock-bottom interest rates that arrived with the pandemic, more than 18 million homeowners have the potential to cut their monthly payments by around $300, says data firm Black Knight.

If you have a solid credit score and at least 20% home equity, you can refinance your home at record-low rates before they creep higher.

Rates can vary wildly from one lender to the next, so be sure to shop around and compare a minimum of five quotes to get the best rates.

5. Pad your emergency fund

Jar of english money with rainy day background
Jeanette Teare / Shutterstock

It’s important to stay nimble in a crisis, and that means having cash on hand that you can use for anything.

Your rainy-day money can bail you out if you suffer a sudden layoff or an unexpected medical bill. There’s no secret formula, but financial experts suggest saving enough to cover three to six months worth of regular expenses.

If you’re having trouble budgeting, you can use a free app called Truebill to track and categorize your monthly expenses, making it easier to find places to cut.

Once you begin to build your emergency fund, stash it in a high-yield savings account. You’ll have instant access when you need it, and in the meantime you’ll earn much more interest than you would with a traditional savings account.

6. Guard your income against illness and injury

Close-up Of A Man's Broken Leg And Crutches
Andrey_Popov / Shutterstock

We’ve had to think about our health a lot more than usual this year, but it’s always deserved to be a part of any financial plan.

COVID-19 isn’t the only thing that could stop you from working, and many Americans aren’t covered for long-term disability through their employer.

Thankfully, there’s a really affordable way to protect yourself and your family. For just pennies a day, you can get disability insurance so you don’t lose all your income in case you can’t work.

With help from a company called Breeze, you can get a quote in seconds and be covered in 15 minutes. It’s just too easy and too important to ignore any longer.

7. Protect your family with life insurance

Love of a mother and baby. Family in the house. Lifestyle
Miramiska / Shutterstock

It’s not something people want to think about, but this is one of the big ones. Just imagine how hard it would be for your family without the money you bring home.

Your finances might seem precarious right now, but consider using a portion of what you do have to open a life insurance policy.

Term life insurance — which covers you for a set number of years — is way more affordable than you might think, and the payout to your family is always tax free. You can use the free service Quotacy to find the best price for coverage that fits your family’s needs.

8. Talk to a professional

Portrait of investment advisor businesswoman sitting at office in front of computer and consulting with young professional man.
Kinga / Shutterstock

You don’t need to be wealthy to hire a financial adviser. Everyone could use a little help.

A certified financial planner, like those available online through Facet Wealth, will be able to customize a plan for you, whether you’re just starting your family or enjoying retirement.

Start with a 30-minute call and see how an expert can help you guard your family’s finances now and into the future.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Ethan Rotberg

Ethan Rotberg

Former Reporter

Ethan Rotberg was formerly a staff reporter at MoneyWise. His background includes nearly 15 years as a writer, editor, designer and communications professional. He loves storytelling, from feature writing to narrative podcasts. His work has appeared in the Toronto Star, CPA Canada and Metro, among others.

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