Author- Sandra Cleveland
An often-overlooked business planning activity is managing your current cash. During a crisis such as the COVID 19 pandemic and quarantine this becomes an essential factor for success. As Federal Reserve Chair Jerome Powell said recently, liquidity problems can turn into solvency problems. These recommendations are intended to empower you with information for making good decisions.
We’re all in this…well, not actually together, but we are all experiencing the same disruption of our usual schedules, isolated at home, additional responsibilities of not just our job, but possibly also home schooling, keeping up with the current government restrictions, one way aisles at the grocery and the list goes on and on.
These times – the 2020 COVID 19 pandemic – highlight the value of a personal emergency fund more than ever.
When you have your regular paycheck rolling in, with no disruption in sight, you may not value your stashed cash for emergencies in the same way you do today.
Right now, you may be wondering, why didn’t I stash more?
The global stock markets have dropped the last 2 days in response of fears about the spread of the coronavirus. As the reports of deaths due to the coronavirus expand beyond China, health officials in most countries, including the US, are developing containment and treatment plans. Pharmaceutical companies around the globe are developing coronavirus drugs and vaccines.
You probably are already aware that we are currently enjoying historic lows in unemployment. According to the Bureau of Labor Statistics, the overall jobless rate as of September 2019 was 3.5%. But what you may not know is that the jobless rate for workers over age 55 is even lower (2.4%) than the overall jobless rate!