March has already proven to be an incredibly stressful time for investors. With the continually developing situation surrounding the coronavirus, you should expect more volatility in the weeks to come.

So much of what is going on is outside of your control. To help prevent the virus from spreading, wash your hands, stay inside, and practice social distancing. Control what you can control.

The same is true for managing your finances. No one can control what the market is going to do next, but that doesn’t mean there is nothing you can do. Take a break from watching the market to consider these few tips that may give you some peace of mind.

Stay Invested

You have heard it before and will hear it again countless times as this downturn continues; leave your investments alone. The idea sounds easy, but with endless news coverage, even the most seasoned investor may feel an overwhelming sense of uncertainty.

Nobody knows what the ultimate extent of this crisis will be. When looking at past downturns, they are painful in the moment, but markets eventually recover over time. Occasional market selloffs are a normal part of the economic cycle. Investors must think in terms of years, not a few volatile weeks or even months.

So what should you be doing with your money? You might hear from various commentators that now is the time to either be ‘all-out’ or ‘all-in’. The reality is that investing is never about trying to time the market by going from one investment extreme to the other. Stick to your investment plan and recognize that a long-term commitment matters most in the end.

Control Your Expenses

It is common to have financial worries during the depths of a recession. This period of uncertainty may feel like it has no real end date in sight and can be scary.

Shift your focus away from daily market updates, and instead, focus on what you can do now. Adjusting and preparing your finances will help keep you calm later. Developing or expanding your emergency savings is essential, and most experts recommend you have three to six months' worth. In times of considerable volatility, having these funds can provide peace of mind.

Now might also be the time to examine your spending and make some more conservative decisions. Hold off on large purchases and take a closer look at non-essential expenditures to see where you can save. There can be recurring costs you didn’t know about. Above all else, recognize that drawing on long-term investment holdings when the market is at a low can seriously impair your ability to meet long-term objectives.

Think About Refinancing

The Federal Reserve has reduced its policy interest rate back to zero, and loan rates began to fall in response. Now is an excellent opportunity to look at any outstanding debt and consider whether it makes sense to refinance. Mortgage rates are currently elevated due to the influx of those trying to refinance, but it is unlikely that they will remain too high.

Analyze your current debts and evaluate the worth of refinancing. Traditionally, when looking at mortgage rates, if the new rate is one to two percent lower than your current one, it is worth considering refinancing. This is a terrific way to take advantage of the situation and save you money in the long run.

Additionally, look at any other debt you may have, such as student or personal loans. You want to be saving and, if possible, adding to your investments during periods of uncertainty, not overextending yourself on unnecessary expenses.

As we continue to move through this volatility, it’s important to stay focused on long-term goals. If you have questions on whether you are on track, you should reach out to your financial advisor.