Managing your money in the middle of the COVID-19 pandemic can seem like a formidable challenge. But even as you and your family face pressing concerns about your income, expenses, debts, as well as retirement and other goals, there are things you can do to maintain financial security in uncertain times. Here are eight timely tips.

1. Reduce expenses

If ever there was a time to be more mindful of your spending, it's now. Try to reduce or eliminate unnecessary costs. For example, look into suspending your gym membership for the time being. Think about canceling or not renewing subscriptions to magazines that you haven't been reading. And, seek out free movies and other entertainment online.

2. Watch out for scams

Scammers are out in full force trying to take advantage of fears triggered by COVID-19. Don't respond to unsolicited texts, emails or calls about stimulus payments from the federal government, low-cost health insurance or work-at-home schemes. Send emails claiming to be from the Centers for Disease Control (CDC) or the World Health Organization (WHO) to your junk folder. Never click links in communications from sources you don't know. Ignore offers on the web for vaccinations or home test kits. Also, talk with your children and elderly parents about potential scams.

3. Contact lenders

If you're having trouble paying bills, consider contacting your lenders and credit card companies to find out whether they'll reduce your interest rates or let you skip payments without damaging your credit scores. You can also ask lenders if they're willing to extend your loan terms, but be aware that extending a term may cause you to pay more in total over the length of a loan.

4. Consider this unique opportunity to reduce the principal on your student loans

Student loan relief is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted by the federal government to offer financial relief to Americans in the wake of COVID-19. Under the CARES Act, payments on qualified federal student loans can be deferred until September 30, 2020, and interest will not accrue while payments are suspended. If any of your student loans qualify for this relief, consider continuing full or partial payments on the loans and applying the payments to principal only. This will give you a special opportunity to reduce your principal before interest accrual resumes.

5. Check your readiness for a cash emergency

In good times and bad, having a cash reserve to turn to in the event of a financial emergency should be one of your top priorities. It's good to have enough savings set aside to cover at least three to six months of basic living expenses, including mortgage or rent payments, groceries, utilities, transportation and insurance premiums. If you receive a pandemic-related stimulus payment from the federal government, but you're currently able to keep up with your bills, see if you can save most or all of the payment for a rainier day. Keep your emergency savings in a secure account that offers quick and easy access to your cash and pays interest on your balance.

A home equity line of credit (HELOC) can be a source of emergency cash when savings aren't available. If you don't have a HELOC but own your home, consider applying for a HELOC now. Just remember that whenever you borrow against your home equity, your home becomes collateral on the loan. If you default on the loan, the lender could seize your home. 

6. Make sure you have these estate plan documents

Like every adult, you should always have each of these essential documents in place:

• A will specifying how your assets and personal affairs should be handled upon your death
• Powers of attorney allowing you to appoint someone to make medical, financial and legal decisions on your behalf in the event you become incapacitated
• A living will that declares whether you wish to accept or refuse life-sustaining treatment should you become terminally ill
• Up-to-date beneficiary designations for any assets not typically covered by a will, including life insurance policies, retirement plans and IRAs

7. Keep a long-term view of your retirement investing

Resist changing your retirement investing strategy solely in response to short-term results in financial markets. Remember that any losses you see on your retirement account statements today are only paper losses. They won't become realized losses unless you lock them in by selling today.

Your retirement investing should reflect a long-term view. Even if you plan to retire within a few years, remember that you won't spend your entire nest egg the day after you leave full-time employment. You'll want to keep most of the savings invested as a generator of growth to carry you through the rest of your life.

Instead of reacting to what's happening in the markets today, focus on your asset allocation (the mix of asset classes in which you're invested), because it remains a critical factor in how your retirement portfolio performs. To reduce risk, keep your portfolio diversified among multiple assets from a variety of classes.

Continuing to invest regularly in your 401(k), 403(b), or 457 retirement savings plan can pay off for you in the long run. In a down market, you get more fund shares for the money you invest. Over time, this can lower your average cost per share. And the lower your cost to invest, the higher your potential rate of return.

Always try to contribute at least enough to your workplace retirement savings plan to take full advantage of any matching contributions your employer offers.  

8. Explore a Roth conversion

With asset values generally down in the pandemic-related stock market decline, now might be a good time to convert all or part of a traditional account in your retirement savings plan or a traditional IRA to a Roth account. A conversion generally entitles you to tax-free withdrawals from your Roth account once you've held the account at least five years and reached age 59½.

You must be able to afford the income tax due on a conversion. However, the tax you'll pay now might be lower than before asset values dropped.  

Speak with your Ernst & Young LLP financial planner about whether a Roth conversion might make sense in your situation.

This material is provided solely for educational purposes; it does not take into account any specific individual facts and circumstances. It is not intended, and should not be relied upon, as tax, accounting, or legal advice.