UMW College of Business Dean Lynne Richardson
College of Business Dean Lynne Richardson’s weekly column in The Free Lance-Star discusses how we should reconsider our spending and saving habits in the wake of the pandemic. Read LIVING BELOW YOUR MEANS.
THE COVID-19 pandemic has devastated the financial lives of many Americans. Between jobs lost or hours dramatically cut back, many are facing financial ruin. The stock market was in free fall for a bit, but seems to have moderated a bit lately. While no one could have predicted the impact the virus would have on the economy, it has caused many of us to consider, or perhaps reconsider, our lifestyle.
Financial advisors recommend that we save enough money to be able to pay for our living expenses for three to six months. Our living expenses would include the “must haves” and not the “wants.” Your mortgage or rent, utilities, car payments, insurance premiums, food costs, and other items specific to your situation—such as baby formula or medicine—would have to be covered. Items such as new clothing, vacations, concert tickets, would not.
Another tip from financial advisors is to live below your means. Just because you can afford something doesn’t mean you should purchase it. A couple of examples come to mind. Read more.