But just like the other major world events, it will take time and we will need to re-evaluate how we behave and live.
Unlike the other major world events, the Coronavirus (directly) impacts your health, so your first rule of financial self-care is take care of your health and that of your family.
Our role is to help you with your financial care. Here are five things you can do right now,
1. Build a Money Plan.
A simple way to do this is to allocate a couple of hours of your time (with your partner) and go through the last few months of expenses, looking at everything you have spent. Make two lists, the first is necessary expenses, the non-negotiables, like rent, mortgage, power, etc. The second will be everything else. This is where you will do most of your reviewing and discussion. What on this list do you not need, don’t use, or could reduce your spending on?
2. Set up a ‘Stuff Happens’ account.
We don’t like the term emergency fund, it evokes negative connotations whereas stuff happening can be good news, which needs funding. This account is funded from the things you have decided that you don’t need, don’t use, etc. (from your second list), i.e. you are going to pay that money into your new ‘Stuff Happens’ account. Ideally, you want to build up the account to the value of six months of your non-negotiable expenses (your first list).
3. Practice conscious spending.
Now you know how much you spend, it is time to be more mindful of where you spend it. While you are doing this, why not support local businesses in your community. In difficult times make the best use of our dollars and spread it to as many small businesses as you can.
So, maybe don’t buy everything at the supermarket, go to the Fruit & Vege shop, the butcher, the local bakery, the wine shop and help those businesses as well.
4. Review your long-term savings.
It is time to talk to a registered Financial Adviser or Planner, depending on your stage of life it may be prudent to reassess your investments strategy. Find out what is right for you.
5. Above all, don’t bury your head in the sand and do nothing.
The ‘she’ll be right’ attitude just won’t cut it! We continue to be in uncertain times so, if you are struggling, seek help, talk to people. Interest rates are at an all time low right now, talk your mortgage broker or bank about refinancing. If you are renting (houses or commercial property), talk to your landlord about payment plans.
Lastly, look around your community, who may be vulnerable and need support. You might not be able to help financially, but maybe some veges from your garden or mowing their lawns or just sitting with them (practicing social distancing of course) can help ease the stress and anxiety for those who need it.
If you are ready to make a conscious decision regarding your financial situation, then we are ready to help you create the right mindset to support your money goals.
When you are ready to talk, we are here to listen and help. Drop us an email or click on this link to find a day and time that suits you to have a chat with us, we’re really very friendly. Best of all, it’s absolutely free!