The best financial advice in the wake of COVID-19? Don’t panic

A health crisis that has quickly become a financial crisis, the coronavirus pandemic is causing a lot of uncertainty for people in terms of how to manage their money. Personal finance expert Robyn Thompson broke down why, in the midst of the outbreak, a financial plan is so important, and offers advice on how to stay calm in regards to your finances. Check out her tips below, and watch the video above for more information.

DON'T ACT ON EMOTION

Money can be an emotional topic. Everyone’s financial fortunes go through periods of volatility, but the remedy is not anger or panic. The best thing to do is to stick to a financial plan and not make financial decisions based on fear.

DON'T WAIT UNTIL IT'S TOO LATE

It’s not uncommon to think financial planning is just for the ‘rich and famous’. Don’t be afraid to reach out to a planner to help set reasonable objectives and create a plan to achieve them.

DON'T BELIEVE EVERYTHING YOU READ

The news cycle is 24/7 and it can make people fret. Don’t succumb to the daily panic-inducing headlines and tweets from the business news media—take them with a grain of salt.

DON'T WING IT

Have a plan and stick to it! The best way to resist the urge to act on emotion is to have a plan in place. Decide goals and financial objectives according to a realistic assessment of the individual’s tolerance for risk.

DON'T TAKE ADVICE FROM RELATIVES

It might seem self-evident, but many people don’t get the proper financial advice. Some people base decisions on rumours or even “advice” from relatives, neighbours or colleagues. This fuels knee-jerk reactions and should be avoided at all costs.[video_embed id='1919251']BEFORE YOU GO: What the Canada-US border looks like in the wake of COVID-19[/video_embed]