Financial Prudence Makes The Difference When Challenging Times Hit

The COVID-19 pandemic caught the world by surprise as economies were brought to a near-standstill for months. The resulting financial pressure forced everyone to make adjustments, essentially digging deep for the challenges that lie ahead.

Governments have been making ways to ease the burden by implementing programs to keep the economy up and running. But in the end, how one will fare in these difficult times will greatly depend on the decisions they will make.

More than a year since the global spread of the coronavirus has started, most economists are convinced the health crisis is not ending anytime soon. That being the case, the wise thing to do is to prepare for the worst.

Hold On To That Stimulus Check

In the United States, the $1.9 trillion relief package approved by the government on March 11 will see the sending out of stimulus checks in the coming weeks. Federal authorities have estimated that around 159 million households will benefit from the initiative, designed to stir economic activities and keep the U.S. economy from further sinking.
However, recipients are strongly advised to delay using the money. With cash on hand, many might be tempted to spend for necessities, pay off debts, or even attempt at making investment moves. Doing so would be unwise as experts warned that recovery from the downturn is not yet in sight.

While the vaccines to squash the coronavirus have started rolling out, the impact is not expected to be immediate, and that applies as well to the state of the economy. That means the worst is far from over and people should be prepared for emergencies.

At the very least, the projection is that reduced income inflow will remain in effect for another 12 months, still due to the raging pandemic. Considering that, it’s always best to have as much cash possible and keep a lid on household expenditures.

The Upside Of Filing Your Tax Early

In relation to the rescue plan that the U.S. government will be implementing, the IRS said the deadline for the filing of 2020 taxes is extended from April 15 to May 17. It is another form of relief but for many, the extra month afforded by the taxman is not exactly advantageous.
Tax experts are saying that Americans qualified to receive the stimulus checks will be better served to make their filing early. Their submission will be used by the IRS to determine their eligibility for the checks. So, taxpayers getting their information to the government soon will be in a better position to claim the cash.
The same applies to those entitled to tax refunds – the paperwork for such claims settled ahead of the deadline will make for smoother processing.

The Road To Financial Independence

Now with or without the pandemic, the ultimate goal for everyone is to achieve financial independence – an experience amply illustrated by a Canadian real estate investor. Inspired by his father, Chad started early in the property business and the path he took provided him stability by the time he turned 36 years old.
And just three years after, the young landlord earned his first million and Chad admitted that following his old man proved to be the wisest decision he had made. But the entrepreneur was quick to point out that success did not come easy.
Chad runs his business hands-on, preferring to do the dirty works of maintaining his rentals, which cuts the cost significantly. Apart from real estate, the Canadian has his hands on stocks and other side hustles. He has multiple income streams that fund the lifestyle of his choice.
Chad, a former IT professional, is a living testimony that financial stability gives one the freedom to do things at their own bidding and time. And becoming successful is made easier by having access to the appropriate financial tools and information.

Sources:
https://www.cnbc.com/2021/03/17/stimulus-check-update-how-suze-orman-says-to-spend-your-third-payment.html
https://finance.yahoo.com/news/you-might-want-to-file-your-taxes-soon-even-though-theres-an-extension-191435414.html
https://www.marketwatch.com/story/this-man-became-financially-independent-at-36-and-says-the-key-to-happiness-is-owning-your-own-time-11616090036?mod=financial-news