The COVID-19 pandemic has turned people’s finances upside down. However, that doesn’t mean all financial planning should be thrown out the window. Financial advisor Anamika Madan recently discussed tips for financial planning during the pandemic and why staying on track is so important.

“Many feel that there is no end in sight to this pandemic and are anxious about how it has and may continue to effect our personal financial circumstances,” Anamika Madan said. “During times of volatility, it’s best to review your financial plan and investment strategy to make sure that is line with your goals.”

Anamika Madan expressed that right now is an essential time to manage spending in a responsible manner. There are small steps everyone can take to reduce spending and eliminate the need to use emergency savings. Anamika Madan suggested reducing the number of online subscription services you possess and are not using.

“The COVID-19 pandemic has created rare financial circumstances,” Anamika Madan said. “It’s likely you can reevaluate your budget in several areas.”

Anamika Madan explained that people who have made the transition to working remotely may not be using nearly as much gas as they previously were. Similarly, you may not be taking Uber rides, using the Subway, or spending money on parking and tolls. The money that has been saved can be used toward building your emergency fund or accounting for other expenses incurred during the pandemic.

“Many people think that a pandemic is a horrible time to invest,” Anamika Madan said. “However, investment portfolios increase and decrease in value often. We expect a market rebound, and there’s no reason not to continue adding to retirement savings and other investment accounts if you find yourself with a financial cushion.”

Anamika Madan added the pandemic has created some unique circumstances for homeowners. Interest rates have reached record lows multiple times during the pandemic. Homeowners may want to consider refinancing for a lower interest rate, as even a .5-percent drop can save a family thousands of dollars on their mortgage overall. Anamika Madan explained refinancing can lead to a lower monthly mortgage payment which in turn can be saved in emergency savings or invested.

“The economic downturn is having an impact on everyone,” Anamika Madan explained. “This is an essential time to stay on track with your financial planning and invest more if you find yourself saving more due to less traveling, commuting, and dining out.”

Anamika Madan finished by stating that you don’t have to make these major financial decisions alone. Speaking with a qualified financial advisor can help you understand where your finances stand and how you can continue on the path to success despite the economic downturn.”