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.
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