As the weeks of working remotely and social distancing have persisted, there are many financial strengths and challenges society has had to weather due to the COVID-19 pandemic. From large corporations to small businesses, and their employees, millions have felt the resounding effects.

On average, many have saved three to six-months in emergency funds that have eased the ability to navigate this season, however, begrudgingly others have not been able to fare as well. And while momentarily at a macro-level the pandemic has created an inability to control our environment, there are many ways to optimize the fiscal factors we have that give us peace of mind.

To learn tips on striving for financial fitness while navigating a pandemic, we touched base with Angel Rich the founder and CEO of fintech company, The Wealth Factory. Rich developed CreditStacker, the world’s first financial literacy gamification app, that is available in 10 languages across 40 different countries and has reached the homes of millions. She is also the author of The Black Dollar (2017), serves as Vice Chair of the Washington D.C. government’s Financial Literacy Council and has been recognized for her work nationally by the most renowned leaders.

Rich’s Top Three Preparedness Tips

The first, thing Rich recommends is buying staple items in bulk such as tissue, paper towels, water, frozen foods, and snacks. Buying enough supplies to last for roughly one to two months enables social distancing, while also increasing the opportunity to purchase things at wholesale prices—creating win-win opportunities.

Then to stretch these items further, fun meals can include soups, stews and casseroles. Boiling water can also support almost eliminating the need to spend money on liquid drinks, especially when fresh lemons, cucumbers, and other fruits and vegetables can be added to spice up drinks making for healthy flavored options. “Remind yourself this season is temporary, but a great time for building positive habits,” Rich shares.

Next, it’s helpful to whip out your bank and credit card statements to analyze your cash flow, including all incoming funds and outgoing expenses, even if random. By looking at how much you brought in and spent over the last few months it’s easier to figure out areas to “cut the fat” as much as possible. If you will not need it while in the house, cancel or pause it. Aim to spend as little money as possible and keep your savings high and create room to spend on the essentials—safety, medicine, housing, and food.

Mortgage and rent is also often one of the most expensive budget item. Contacting your mortgage lender and rental office immediately to make an alternative payment plan is one of the most important things you can do. If you are in a position to pay your bills, pay them. If not, finding another solution as fast as possible would be advantageous before getting stuck. For example, many have been taking advantage of calling their auto-insurance companies for an extension or relief.

After your cash flow is set, Rich shares to look into if and how much you may be eligible to receive from government issued coronavirus checks. Determine when the checks will arrive and what to do with the money for the best long-term protection such as buying essentials, rather than luxury items. Various platforms offer calculators to make this easy to determine.

Fiscal Sustainability Amid the Pandemic

“My mother always said: ‘one monkey don’t stop no show,’” Rich details. Just because you are working from home or unable to go your normal place of work, does not mean you are prohibited from freelance roles online. Sites like UpWork.com are booming with job proposals from people looking for help to complete various tasks. Online market research can also generate quick cash through survey completions. Other options include selling items on eBay, becoming an online tutor, launching a drop shipment site, or renting out your home.

Additionally, she recommends that starting a business during the coronavirus is probably one of the most productive things you can do during the shut-in and after to effectively rebound from the impact. During the infamous Furlough, two sisters came together and started a cheesecake business that is now in Walmart and generating millions, less than two years later. Take advantage of the free time to attend classes online and complete the steps necessary to get started. And if you already have a business, invest in your business by improving an existing product or adding a new one.

Rich expresses that writing a book is another great option. One of her companies, SelfPublisherInk.com helps people at all stages get their books published on Amazon and in Barnes & Noble. Writing about a subject you are knowledgeable about can add substantial wealth if done right. The book can also be turned into online courses and seminars.

Considerations for Student Debt At This Time

For college graduates, last year, 69% of college students took out student loans, and graduated with an average debt of $29,900. With Americans owing over $1.6 trillion in student loan debt, more than 44 million people are heavily burdened. Student loan payments are about $250 on average, with 11% of student loans being 90 days or more delinquent.

“If you have the ability, pausing payment on your student loans would be a great idea,” Rich shares. Try contacting the Department of Education Federal Student Loan Relief, your school, or your loan officer. To avoid delinquency or default penalties it is best to communicate with them as soon as possible. You may be able to get a lower monthly payment or pause your payments temporarily with proactive action.

Resources for Entrepreneurs to Fiscally Rebound

For entrepreneurs, “if the pandemic has left you unable to pay your bills and you have less than 500 employees, your business may quality for a federal disaster relief business loan from the Small Business Administration,” says Rich.

Resources for entrepreneurs:

1. Bumble is granting small businesses up to $5K in assistance with verified registration numbers.
2. Facebook Small Business Grants Program is offering $100M in cash grants and advertisement credits for up to 30,000 eligible small businesses across 30 countries.
3. The GoFundMe.org Small Business Relief Fund is providing one-time matching grants for small businesses that raise at least $500 and can confirm that the business has been impacted by the pandemic.
4. Zapier Small Business Assistance Program is offering $1M for businesses with existing foot traffic that are being impacted by social distancing—in the tourism, food, hospitality, salons, fitness, and education industries. 
5. Kiva is also offering 0% interest loans for entrepreneurs in the U.S.

To Invest Or Not To Invest?

The number one rule for investing in the stock market is to buy low and sell high. “While working at a top financial services company, the executives always called recessions ‘sales.’ Buying a great Blue-Chip stock at a quarter of the price is an investor’s dream. Where people go wrong is jumping in too early, late, or never,” Rich shares.

Her number one tip is that it is important to view your portfolio with a long-term perspective—beyond what the current market illuminates—while also adhering to coronavirus defects that alter market valuations. “One of the most important signs that we may not be out of the woods yet is in analyzing the peak of the crisis. On average, a virus peaks at eight weeks from the start date, which in America’s case was March 21st,” she describes. So far, we are not seeing a decline in the number of infections. This gives us a clue that the crisis is not yet rescinding.

Often times people mistakenly spread their investments thinly. They scatter their capital, which means they are also scattering their attention and focus. “In 1885, Andrew Carnegie addressed a group of students and said “put all your eggs in one basket, and then watch that basket.” He further notes that when a person places their attention on one basket, they do not fail often because it is easier to carry one basket,” Rich recommends.

Rich also looks to Warren Buffet who is known to follow this same strategy and says it is foolish to put all your eggs in one basket. “During a crisis a great rule of thumb is to monitor Warren Buffet’s blue-chip stocks and his actions,” she highlights. He is one of the most renowned investors, acknowledged by many for his wise decision making and ability to protect his favorite brands. For instance, during the 2008 downturn he was a vital savior of Bank of America, ultimately contributing to the economy’s rebound in a major way.  

 Rich’s Top Stock Picks

1. Amazon (AMZN)
2. Netflix (NFLX)
3. Pfizer (PFE)
4. Clorox (CLX)
5. Alibaba (BABA)
6. Campbell Soup (CPB)
7. Procter & Gamble (PG)
8. Johnson and Johnson (JNJ)
9. Delta (DAL)
10. American Airlines (AAL)
11. Zoom Video Communications (ZM)
12. Bank of America (BAC)
13. Coca-Cola (KO)
14. Apple (AAPL)

Precautionary Actions to Take In Case of Future Crises

“We need to live below our means and take time to be with family within our own space without pressuring ourselves to go beyond. If everyone followed those guidelines the crisis would not feel as horrific, instead it would be viewed more as a vacation,” Rich believes.

Additionally, in an odd way, she feels the pandemic may help deliver better financial habits for the future. Rich highlights that: “in the past most people laughed at maintaining three-months of emergency savings at all time. Now with this crisis fresh in our minds, many will rethink how much they spend on bottled-water, clothes, and eating out.”

Overall, her key takeaways are to always: 1) review your bank statements, 2) maintain emergency savings, and 3) have a couple of side businesses, crafts, and/or projects. Rich hopes that these will become new cultural practices that can protect us from future disasters.

To follow Rich and learn more about her future work visit here.