Published: 25th June 2020
YFW Guide: How to Manage your Finances in a Post COVID world.
Far be it from us to jump the gun, but there appears to be the faintest glimmer of cool, white, sanitised light at the end of this COVID tunnel. Some social restrictions are slowly being eased, businesses are cranking up, and we are starting to see what post-COVID Australia may look like.
With cafes and restaurants offering takeaways and accepting limited dinner reservations and other recreational activities (including domestic travel) increasingly allowed, there’s finally opportunity to spend our hard-earned cash. First and foremost – treat yourself. If it takes a fancy dinner or salon treatment to make you feel a bit more ‘normal’, go nuts. But, before taking up all your old spending habits, we recommend you read our 4-step guide to implementing positive spending habits now, to benefit your wallet and your life in the return to ‘the new normal’.
Step 1: Take stock
If you’re one of the millions of Australians who have accessed JobKeeper or JobSeeker payments, chances are you’ve experienced reduced working hours or pay over the past few months. Even if your income has been largely unaffected to date, this uncertainty may continue for some time yet. Make sure you have an idea of your expected income and safety net before you start spending lots of money. This will provide you with more control, peace of mind and options should we experience a second pandemic wave or further uncertainty in future.
Step 2: Think about your priorities
Have you put off any important expenses to this point? If you’ve delayed a project in your life (whether it’s DIY home improvement, a surgery or treatment or even a business or educational expense) now may be the time to revisit it. Consider your base level expenses, and the second priority expenses which may be possible now there’s a little more certainty and stability.
Step 3: Make it happen
If you’ve decided to take the plunge with a new investment, get busy. There’s high turnover in stock and assets and lots of movement in the business sector. Now may be a good time to make a big move. Spend some time thinking about the process you need to go through for your intended expense. That way, when the time’s right, you’re ready to go.
If you’ve not got any big or new projects to begin, this step can be about enforcing new habits to make positive changes to your spending habits. What changes have you made in the past few months that you’d like to continue? What can you stop now that your daily routine will change? This could be as simple as foregoing bought coffee and taking your own lunch to work or as complex as tracking your spending or dedicating funds to a savings account. Think about what you want to stop, start and continue to form your desired future financial state.
Step 4: Keep track
We may never again have this same opportunity to pause and reflect. Write down your goals and set a reminder in your diary / phone / or with a group of friends to hold yourself accountable. Keep revisiting these goals and track your progress towards them over the next few months. Good luck, you’ve got this!
To learn more about how to ensure your financial wellbeing, contact the team.
Article originally appeared at https://yourfinancialwellness.com.au/. Find out more about Your financial wellness and get financially fit today.
Any advice given is of a general nature only and does not take into consideration your personal circumstances. Please consider the appropriateness of the advice before acting.