Financial Goals change with change in Income and Taxes as Well

Financial Goals change with change in Income and Taxes as Well If there are any minor changes into your Income such as a pay rise or a decrease in the duration of work hours, then it is quite easy to change your financial goals. However, if there are bigger changes in your income then it becomes quite difficult to change your financial goals.  It may be a case of a promotion, a pay hike or a pay cut during adverse times like pandemic. In both of these scenarios, it is quite difficult to manage your financial goals and objectives. Let us have a look at how to manage or rather change your financial goals as your income changes. A huge decrease in your income In case, there is a huge decrease in your income then the most important thing to consider is the impact of the decrease in your life on a daily basis. Suppose, you have lost your job and you are filing for unemployment then, in that case, your expenses would be more than your income. In such cases, the best idea is to look out for those areas where you can cut your expenses to get closer to positive cash flow. If such adverse situations occur, then it is best to put your long-term financial goals on hold for a temporary period.  There might be a need for goal adjustment and it can be started by reducing your contributions to align with the decrease in income. In these adverse times when the deadly coronavirus has taken a toll on the lives and the livelihoods of people, if there is a 50% reduction in your income then your contributions towards investments and other financial avenues must be reduced by half. With the economic situation worsening every single day due to the pandemic, it is wiser to remain careful about such situations and strategies to handle such scenarios.  A huge increase in your income If you are getting a pay raise or switching jobs, you must plan towards increasing your contributions for your financial goals. You should avoid spending more and stick to a particular budget for your expenses. The bottom line is that you must try to resist the temptation to spend in a limitless manner. It is quite obvious that you are accustomed to a particular lifestyle and when your income increases you can be able to save some more by maintaining the same lifestyle. There can be a temptation in your mind to accelerate your financial goals and you can use several financial tools which can help you in accelerating your goals and increasing your savings. In case you are saving more, you would be able to achieve your financial goals easily and on time so it would be quite sensible to adjust your timelines. If financial goals are not dependent on the stock market or any other factors you can adjust them as they fit into your financial plans.  One of the best examples explaining this is your retirement. The retirement accounts which you have would definitely be invested into the stock market and if there is a rise in your income it indicates that you can retire earlier with your financial plan reflecting this. It is imperative for you to adjust your allocation of assets with an updated time frame of retirement along with your projections.  In general, a big change in your income indicates a very big change in your goals associated with savings. You should not forget to adjust your savings goals with any unexpected increase or decrease in your income. Conclusion Hence, an increase or decrease in your income can have a great impact on your financial goals. You must determine your financial goals clearly whenever there are any changes in your income and work accordingly to achieve those goals.
7 things-to-do to stay #Financially Healthy during the pandemic

7 things-to-do to stay #Financially Healthy during the pandemic

7 things-to-do to stay #Financially Healthy during the pandemic

The pandemic COVID-19 has been affecting the entire world in a very adverse manner. Many of the people across the world are not only worried about their physical health, but also about their financial health. With many businesses closing down either permanently or temporarily and millions of people losing their livelihoods, anxiety, and stress-related to finances is a common scenario nowadays. 

However, despite the extremely tough situations all around us; we should not lose hope and must think about methods by which our finances would be in our control.

Let us check out some of the tips which can help remain financially healthy during the pandemic COVID-19.

Prioritize Saving

When we think about saving, it appears to be easier but it is difficult to implement. When the salaries are being cut-off, businesses are being shut down and there is panic all around it becomes even more difficult to save. However, with the Government emphasizing and urging people to remain indoors the scope for expenses has reduced to a certain extent. Since social distancing is being widely practiced and we are staying in our homes mainly so there is a reduction in expenditures. It seems that saving is feasible and whatever you save, you can keep it for any unprecedented expenditure in the future.

Refinancing your loans

 It would be a good idea if you look around your loan and do some research to find out on better deals. You should, however; keep in mind that during these times many financial institutions would be having quite strict lending conditions. There would be a few credit card companies which would 0% interest rate on balance transfers and you can perform research on this. In case, you are having a mortgage you can check with your provider about the full interest rate drop. You can consider changing to another provider if you have not been provided with this drop.

 Avoid neglecting your loans or bills

If you are not in a good financial condition and would be facing difficulties in paying your loans or bills, you should contact your loan providers immediately. In the current situation, these companies are pro-active in understanding the issues of their customers and helping them with other alternative payment options. Your loan providers might offer you alternatives like an extension of your loan repayment time or reduction in repayment for a short duration, etc. It is advisable to deal with financial problems earlier to avoid any long term impacts.

Check for employer support

Your employer must be having different policies for providing support to the employees during difficult times. You should ensure what policies are offered by your employer. You can connect with your HR directly or check out about the details of the policies on your employee portals. There can be assistance programs like salary advances, emergency funds, salary-linked loans, and other forms of employee assistance programs. These programs can help stabilize your financial condition to a certain extent during this pandemic.

Research on Government aids 

The Federal Government has been trying to alleviate the mental stress and anxiety caused to the Americans due to finances amidst COVID-19. By the Stimulus bill, Americans would be receiving checks of $1200 and $2400 for single individuals and married couples respectively. Apart from this, the Government has been continuously trying to bring up many new schemes for the common people. You must remain updated about these schemes and avail of the benefits.

 Consider taking up side jobs

You can think about taking up any side job whenever you have some time. This will help you in earning some extra money and better control over your finances. Currently, there are a lot of new opportunities available in supermarkets and the contactless delivery services as well. If you have free time or are not into any particular work at the moment, you can take up these side jobs. However, you must be careful and maintain the necessary precautions to avoid being affected by the COVID-19.

 Take assistance from a financial coach

You can seek help from financial coaches who practice financial social work. Free financial coaching is provided by many non-profit organizations. These coaches can assist with your immediate needs and can also provide an introduction with some other agencies which can help with food and finances. Also, they can help in the development of a financial preparedness plan for the future which would be beneficial to control your finances.


Hence, if you are worried and scared about finances in current times; it is quite obvious. You should avoid being panic and try to remain calm. You should review your spending, set goals, and try to save cash. Things will improve within sometime; meanwhile, you need to take care of your financial and mental health.