Averting a Financial Crisis | Midwest Title Loans
April 13, 2020 | Daniel Dewitt
There’s no questioning that the current COVID-19 pandemic we’re all going through has changed a lot. Not only are a majority of us stuck at homes with whatever combination of friends, family, and pets were in the room when lockdown hit, but the hard crash of the global economy has put all our financial futures in doubt, which is no doubt one of the reasons that our title loan Chicago IL locations have been so busy.
Now that we’re a few months into this global pandemic though, the trajectory of the next year has begun to stabilize and we’re able to begin to see the long term financial consequences. What will they be for you? That’s the question we’re here to explore today.
Jobs Across the Midwest
The rate of Illinoisians receiving unemployment is truly unprecedented, eclipsing that of even the 2008 recession.
Millions of Americans have been laid off in the last two months, and with many businesses functioning on life support, that number is only going to rise.
If you’re one of those millions, then there’s no other way to spin it: you need help. Title loans Illinois might be a Google search on your radar right now, and rightfully so.
Most American’s don’t have more than $400 to spend on an emergency like losing their job, and the direct payment relief that congress promised in its stimulus bill is still weeks if not a month away from actually being deposited in our bank accounts.
This increase to unemployment along with the direct payment combine to offer a glimmer of hope for the future. The best thing you can do for your financial future is to focus on making smart money decisions. and do all you can at the moment to cut costs and save what money you can. You should also use this opportunity to learn skills that will make you a more attractive employee in the future when the pandemic does end: learn a second language, take an online course in your field, or get a certification.
Using Title Loans to Replace Your Savings
While only a minority of Americans play the stock market on a regular basis, many of us do have money in it: specifically, our retirement. Whether you have a 401k or just like to park your money in stocks you trust, the financial health of your golden years is intimately tied to the stock market.
While the stock market plunged badly at the outset of the pandemic, it’s since rallied for the most part, though it still fluctuates daily and hasn’t recovered its pre-pandemic heights. What the stock market’s fluctuation means for you is largely dictated by your age:
- If you’re young and still fifteen to twenty years away from retirement it’s barely a blip: the stock market will have long ago regained its former height by the time you need to start living off the dividends.
- If you’re five to ten years away from retirement, the stock market’s crash is more worrying, but still not a cause for true alarm: by the time you retire, it will have for the most part recovered, even if it’s disappointing that it didn’t continue its lucrative pre-pandemic upward trajectory.
- If you’re already retired, the stock market’s crash is an unmitigated problem. While it could’ve no doubt been worse, any dip in the markets directly impacts your bottom line and the income you use to put money on the table.
The Illinois Housing Market
If you’re a homeowner then you’ve probably been holding your breath for the last month, and understandably so: home prices were the first thing to crater in the 2008 recession. It’s ok to let your breath out though. While all our homes have taken a bit of a hit, it’s nowhere near as drastic or cataclysmic as it was in 2008.
In fact, the market as a whole despite taking a beating has been on a slow recovery track, and there’s no reason to think it should dip precariously if things stay on track. Your investment is most likely still entirely safe.