3 Reasons Why You Should Rethink Your Financial Strategy Post-Pandemic

The pandemic hit everyone hard mentally, physically, emotionally, and most definitely financially. Many individuals may never fully recover financially from the impact of the global shutdowns. financial strategy

But, you can see greener pastures if you rethink your financial strategy for the immediate and long-term future. It is no lie that you're going to have to cut back on some things and focus more on others to have a chance at recovering.

By the time you finish this article, you will learn some crucial tips that will help you replan your fiscal future and give you a leg up on your finances. You will also have some insight into how hard the pandemic hit the masses.

How the Pandemic Affected Black American Finances

Black Americans' financial standing did not truly compare to those of non-POC heritage. The pandemic has exacerbated that fact. Studies show unemployment raised sharply over the pandemic period.

A rough statistic to overcome, but unemployment has fallen drastically in 2022, so good news there. However, people are still feeling the effects of the pandemic, especially those who do not have a full college degree.

Housing has become a serious problem as more than half of the Black population in America does not own a home. For some who may not know, owning a home is a significant asset to your finances because of the future value it will have for your children.

Given that fact, it is more important than ever that we start being smarter with our money. It may be OK to rent for a year or two, but eventually, you'll want to buy a home, which is why budgeting is more important than ever.

3 Reasons Why More and More Blacks Are Budgeting

1. Buying a house

As we mentioned earlier, owning a house is an essential financial boon for you and your children. Not only do your kids always have a place to stay, but you can also sell if necessary.

Many people have invested more money into real estate because of the impact COVID-19 has had on housing. Buying cheap houses and flipping them for profit have become a very lucrative endeavor for many.

2. Paying off debts

That has been one of the biggest financial killers in Black communities. Saving money to pay off debt and build credit has become a big emphasis in Black households.

A higher credit score directly impacts how much money you can save. Due to the pandemic, credit card utilization has risen, raising credit scores.

Now it is on us to ensure that our credit score does not fall back down to stay there or even low range. We must take advantage of the privileges that come with a high credit score.

3. Starting a business

If the pandemic has shown us anything, it is that life can take 9-5 jobs away without warning. That is not to say that they aren't a safe way to make money, but having your own business may be a good idea.

Stowing away a few bucks for an investment for a personal project that you hope will blossom into a full career is the new financial wave. The pandemic forced many Black businesses to close down shops, but they came back stronger with a major boom.

3 Tips on How to Budget Your Money in Light of the Pandemic

1. Cook more at home

I will be the first to tell you that I have spent too much money on GrubHub and Uber Eats over the pandemic. Although the services were necessary when we were in lockdown, the time has come to go back to the grocery store and buy food for the month.

You'll save more money on food, and you can enjoy some home cooking.

2. Use apps to help your finances.

A lot of helpful apps can help you manage your finances and even build your credit. I use the Self app to both save money and build credit.

3. Take a walk or ride a bike when possible.

We've all seen those gas prices out there. Driving your car has become much more expensive than it used to be, so it might be best to walk to destinations whenever possible. Of course, public transportation is always an option as well.

By Chauncey Simmons | Published July 27, 2022