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Battening Down the Hatches: How to Save Money During a COVID-19 Quarantine

This article is part of a series on personal finance during the coronavirus pandemic. Please check out the Coronavirus and Your Finances Series (link will open in a new window).

There is only one amount of money – just not enough.
–Andy Kaufman

As of when I am writing this article, April 6, 2020, over 90% of Americans are under shelter-in-place orders to prevent the spread of the coronavirus pandemic.

Given that some economists are predicting a 30% unemployment rate, and the COVID-19 government stimulus check probably is not going to be enough to keep most Americans afloat if they lose their jobs, then, not only should we be thinking about how to increase our emergency funds, but, also, what other expenses we can cut to protect ourselves from financial ruin during the COVID-19 pandemic.

Here are a list of expenditures and actions to take that you should consider to protect yourself in the event that you do lose your income or your income is reduced as a result of the coronavirus pandemic:

This list is, naturally, by no means exhaustive.

It’s meant to be a mental stimulator to get you thinking intentionally about your spending as well as being proactive with those whom you typically pay.

If you’re concerned about how coronavirus will affect your personal finances, then you need to go through a thorough and thoughtful evaluation of your spending to get to the bare bones of spending so that you buy yourself time and runway in case the worst happens.

The response and downturn as a result of the COVID-19 pandemic will eventually end. Your goal is to make sure your money makes it to that point as well.

By

Jason Hull, CFP®, was the co-founder of Broadtree Partners, a firm that acquires $1-5MM EBITDA companies. He also was the co-founder of open source search consultancy OpenSource Connections, a premier Solr and ElasticSearch firm. He and his wife FIREd (financial independence retire early) at 46 and 45, respectively. He has a BS from the United States Military Academy at West Point and a MBA from the University of Virginia Darden Graduate School of Business.

You can read more about him in the About Page.

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