Staying Calm & Financially Prepared During Crisis - Q/A w/ Nick True

TL;DR

Take advantage of the current crisis by focusing on what you can control, such as building up your savings and investing in real estate, and find opportunities to help support your local community.

Transcript

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Key Insights

• 🎮 Focus on what you can control and recognize the difference between what you can and cannot control.
• 🉐 Take advantage of the current crisis by finding opportunities for growth and learning.
• 👨‍💼 Support local businesses and communities during this time of need.
• 🌸 Prioritize savings and building cash reserves to prepare for potential income loss or economic uncertainty.

Questions & Answers

Q: Should I continue with my plan to buy an electric car or save the money as a hedge against future income loss?

It is advisable to hold off on making major purchases and save the money for potential income loss in the future. The current situation is uncertain, and having more cash on hand is essential.

Q: How do I catch up on YNAB transactions if I've fallen behind?

If you have fallen behind on YNAB transactions, you have a few options. You can do a reconciliation balance adjustment to match your current account balance, manually enter the transactions by going through your bank and credit card statements, or consider doing a fresh start to start over with a clean slate.

Q: What should I focus on with my investments during this crisis?

In uncertain times like these, it is advisable to pause accelerated debt paydown and instead focus on building up your emergency fund or cash reserves. This will provide a safety net in case of income loss or unexpected expenses.

Q: How do I deal with allocation in my investment portfolio?

The best approach to asset allocation in your portfolio can vary based on your risk tolerance and long-term goals. Some prefer a percentage-based approach, while others opt for time-based strategies. It is recommended to do thorough research and consider consulting with a financial advisor before making any allocation decisions.

Q: Should I continue to make student loan payments during the crisis?

The government has offered options to suspend student loan payments temporarily, so it is recommended to check with your loan servicer and explore the options available to you. If you can afford to still make payments, it is a wise choice to continue doing so to avoid accruing additional interest.

Summary & Key Takeaways

• Use the current crisis as an opportunity to reassess and adjust your financial goals and strategies.

• Focus on what you can control, such as reducing expenses, increasing savings, and investing in areas like real estate.

• Consider ways to support your local community and small businesses during this time.

• Take advantage of the extra time at home to learn and educate yourself on topics like personal finance and investing.