8 Things You Can Do To Improve Your Finances Post-Covid

 

The coronavirus pandemic has been sweeping through the world at an alarming rate, and while it seems that we may be heading towards the end of the pandemic, with new vaccines on the horizon and falling case numbers, the lasting effects on finances may be something that we have to live with for many years to come yet.

The Impact On Global Finances

 

The pandemic has had a huge impact across the world on both families and governments at the same time. While many of us have close friends or family members who have been affected by the health impacts, many more of us will have been personally affected by the impact on family finances.

 

Whether you are employed, self-employed, or even living off of inheritance or passive income, everyone has felt the strain, and, now more than ever, it’s vital that you get a handle on your finances.

 

Many of the world’s top statisticians and financial advisors are warning that we’ll be facing another great depression and, with many businesses unable to weather the COVID-19 storm and closing for the last time, your financial future is looking much less solid than it was this time last year.

Sorting Out Your Finances

 

It’s true that things look pretty bleak right now, but it’s times like this that really make a difference. If you can sit down and spend some time going through your own finances, sorting things out, and making sure you’re not overpaying for anything, you will be in a much better position when the world reemerges from the depths.

 

Getting your finances straight now needn’t be a hard task; you could even tackle most things in one long weekend, but it’s vital that you really consider the wider impact. As with anything in the financial world, making a small change now could be worth a small fortune later on, especially if you are shrewd with your money and invest it wisely.

 

Here are eight things you can do in the next few weeks to ensure your finances are healthier and stronger, ready to face the inevitable hard times ahead in a post-Covid world.

Get A Financial Advisor

 

Before you do anything with your finances, you should get a financial advisor. Speaking with a financial advisor is one of the wisest moves any adult can make; they have the in-depth industry knowledge you don’t, and they will be able to make you make the best choices, helping your money work for you.

 

When you’re looking for a financial advisor, many people prefer to meet them in person (pandemic aside). A local financial advisor will have more of an understanding of your situation from a local as well as national perspective; for example, a Beverly Hills financial advisor will be more in tune to the workings of West Coast USA than a financial advisor from Alaska. They will likely have a similar client base to you, leading to a wider understanding of your particular circumstances.

Consolidate Your Debts

 

No one likes to be in debt, but as an adult, it is almost inevitable that you will have some debt somewhere.

 

Have you got a car on finance? How about a credit card with a higher payment? Are you paying back a personal loan?

 

While there’s nothing wrong with having some debts, in some cases having a debt that you pay back regularly can actually be quite good for your credit score. Paying back too much interest can be financially crippling for no reason.

 

Take a moment to really go through your finances to see what you are paying, how much, and to whom. If you have credit card debt, see if you can move it to an interest-free card and pay it off. If you have a loan, see if you can negotiate a better rate, or can you pay more off a month to reduce the interest?

Make a Meal Plan

 

This tip may not seem much like it should be on a financial advice article, but the average person wastes hundreds every year on wasted food, mostly food that has gone past the use-by date and needs to be thrown away.

 

By doing a meal plan for yourself and your family, you’ll be saving money on wasted food, and you’ll also be able to reap the rewards of planning healthy meals ahead of time, instead of rushing at the last minute and grabbing something unhealthy.

 

If you have a busy work/life balance, now might be a great time to invest in a slow cooker, so your dinner can cook while you’re at work!

Organise Your Bills

 

So many people overpay on their energy bills, and it’s a really simple thing to fix too. When it comes to household bills, some are inevitable, and you’re unable to change them, but for most bills, you can use comparison sites to get the lowest rates.

 

Your energy bills are not bills that you should have loyalty to any company over. There are very few rewards to be had for sticking with the same energy supplier for years on end. Sign up to an automatic switching service to ensure you’re on the cheapest tariff that meets your needs every year.

 

While you’re investigating your bills and how much they cost, have a look at your subscription services too.

 

Do you really need a subscription to Netflix, Disney+, and Amazon Prime? Will just one do? Are you paying too much for your internet service provider, or have you got an expensive bundle with lots of added extras you don’t use?

 

Don’t be afraid to be ruthless when deciding between necessities and luxuries.

Start A Side Hustle

 

The buzzword for the 2010s has definitely been “hustle.” Whether it’s working harder at your job or taking on lots of paid side projects, hustle culture is alive and well, and it’s here to stay.

 

Hustle culture has been criticized for leading to high levels of stress, and it can, but at long as you keep your life and work in perspective, getting a side hustle could be a great way to boost your finances.

 

Can you write? Why not start a blog? When done right, niche blogging can lead to a full-time income, or at least a healthy side income in just a couple of years, and for a passive income stream, that’s a great result.

 

Be warned; a side hustle isn’t all about making money while you sleep; it involves a lot of work and commitment and could lead to less sleep to begin with!

Start A Savings Account

 

There has never been a better time to start a savings account, mainly because it’s easier to save if your money is in a separate account!

 

While savings accounts might not earn you hundreds or thousands in interest, the very physical idea of taking money out of your personal account and putting it in a separate account so you can’t spend it is a fantastic idea. Even better if you decide to go with a different bank completely (so you can’t see it when you do your mobile banking!).

 

Look for the highest interest savings account you can, and set up regular payments every day. Even small payments will add up over time.

Investigate Investing

 

Have you ever invested your money before? A shrewd investment could be a great way to make your money work for you.

 

This is something you definitely need to speak with your financial advisor about, and it’s worth remembering that there is no such thing as a sure-fire investment, but if you have the money spare, it’s a great way to grow your finances and your portfolio ready for your retirement or a rainy day.

Sell Your Unwanted Items

 

The last thing on our list is to get selling!

 

Everyone has things lying around their house that they’re not using anymore. Whether it’s that mountain bike you haven’t ridden for the last 10 years, that guitar you’ve been meaning to play, or even clothing that used to fit and is now a little tight, why are you holding on to it all?

 

While you might not get much for your old belongings, and it’s true that auction sites like eBay just aren’t what they used to be, there are plenty of places you can sell online. Craigslist, Gumtree, Etsy (in some cases), even Facebook Market Places are all great places to sell your unwanted items!

 

Do yourself a favor and have a good clear out — tidy house, tidy mind, as they say.

Conclusion

 

Becoming financially stable is a long road, but in the current economic climate, we need to be organizing our finances better now more than ever.

 

It’s said that in the US, most people are just one paycheck away from poverty, don’t let that be you and your family. Sort out your finances, speak with a financial advisor, and get your accounts in order so that you and your loved ones can face the future as financially strong as possible.

 

 

No comments

"Pleasant words are as a honeycomb: sweet to the soul and health to the bones." Proverbs 16:24