None of us could have expected Covid-19 to do the damage it has done (and continues to do), not only to our health but also to our finances. As we move to a more remote, online world for work, we must understand where our money is best spent to stay on track. Here are 3 tips to help you stay focused on your financial goals:
1. Analyse your budget
The budget you followed in 2020 and 2021 probably looked very different from that of previous years. Consider what spending habits you liked and disliked during these years and focus on the important costs like rent/mortgage, insurance, groceries, utilities, transport, savings/debt, and childcare. Keep in mind that food costs have risen, so more money may need to be allocated to this area. The government gave many of us more money throughout the pandemic for childcare and living costs, so make sure you are prepared for increases in these areas.
2. Where to save money
If you started working remotely or online during 2020/2021, you might want to continue this permanently. Making meals at home rather than eating out and not commuting to work will save you money. If you lost your job because of Covid-19, you may be entitled to more discounts than you're aware of. Talk to your bank, workplace, insurance company, utility company, etc., to see where you could be saving extra money. Having an emergency fund set up protects you from future financial difficulties. If saving is difficult for you, take advantage of your bank's saving programs.
3. Taking care of debt
If you have very little money, forgoing debt responsibilities might cross your mind. But you don't have to make that difficult choice. Contact your debt institution to work out manageable repayments in a reasonable timeframe and stay in contact with them if you continue to have financial trouble. If the debt came from financial difficulty during Covid-19, you may be entitled to get it reduced or wiped altogether. Try to reduce financial stress by contacting organisations to assist you with payments and any difficulties you're experiencing.
So, as we enter the changed economic landscape of 2022, consider personal budgeting carefully and with the future in mind. If you are looking for a financial expert to help you create a financial plan, Top 10 Financial Planner can connect you with the financial advice and planners you need. Get in touch with us today to learn more.