The COVID-19 has uprooted countless lives, in and out of the hospital. The slowdown in the economy has also caused a fallout, leaving businesses failing without security. Unfortunately, all these instances are testament how fragile financial stability can be, and how everything can unravel with shocking speed.
Many individuals continue to suffer from job loss and business failure, as well as other unexpected changes that have left their savings close to nothing. As a result, they turn to their friends, family, and institutions that may have the answers.
In such unprecedented circumstances, however, it can be difficult to find reassurance. If there’s one thing to gather from the previous months, it’s that life is fleeting and financial disaster can strike anytime.
As a result, people scramble to iron out their finances, in an effort to ease the overwhelming burden of the pandemic. To help you get back on your feet, here some important things to take into consideration:
1 – Continue building your emergency savings
The idea of building sufficient emergency funds has always been an important part of good financial planning, but one that doesn’t always get due credit. Most people end up scrapping the idea altogether, pooling funds into other matters, such as expenses and other investments. While these are undeniably important, COVID-19 has left millions of people without an income and without anything to spend.
It’s best to begin building a year’s worth of funds now, which you can begin by trimming non essential expenses. This extra money can be saved to build the emergency fund—should disaster strike once more, you’ll have a year’s worth of funds to help ease the burden.
2 – Revisit your budgets
Despite the current ease of lockdowns and dwindling of COVID-19 cases, remember that the situation isn’t normal. There’s great uncertainty for various businesses, which includes households. That said, it’s best to ensure that you’re able to cover essential expenses no matter how the scale tips, so make sure to find new ways to preserve your cash.
You may want to look into reducing utility bills, or perhaps cutting down on gas and parking tickets. Purchasing coffee from your favourite coffee shop can also be avoided, as staying at home means making your own cups of joe at home. Instead of amplifying your expenses, use the extra money to build your emergency funds instead.
3 – Venture into estate planning
The list of people who have passed from COVID-19 is extensive, and although the number of cases is slowing down, the list continues to get longer. The possibility of suffering from the coronavirus is high, so it’s important to get your affairs in order through estate planning.
A sudden and unexpected death can bring stress and turmoil to your family, but your passing will can be exacerbated if you do not have a will by your side. Without a will, the legislation will end up governing your assets, leaving them in the hands of people you may not wish to impart your possessions with. It’s better to prevent than cure, so make sure to invest in estate planning now to prepare for the worst.
Achieving Financial Security For The Years To Come
The COVID-19 has affected millions of people around the world, and this alone should be a reason to invest in your financial stability. By keeping these tips in mind, you’ll be able to minimize risks should a disaster strike again. You’ll need to be smart, dedicated, and of course, disciplined to prepare for a better financial future.
Don’t wait for the next disaster before placing your finances in order—trust in Jubilee Financial. Regardless of your age, situation, and financial situation, we’ll help you achieve your financial and life goals. We’ve been in the industry for 15 years, serving countless clients across Australia, and no disaster will impede us from providing you with excellent care and service.
Let’s talk finances—reach out to a financial planner today.