Recent events will have brought money & finances into sharp focus for many. Furlough, redundancy, reduced hours, working from home, have all become part of our vocabulary.
Many of us have naturally prioritised essential spending – such as food and medicines. A few of us may have even been able to save a little, as a result of less travel costs, socialising and more.
So, now that the world is trying to normalise a little, and politician’s thoughts in part turn to the economy. Are there money lessons that we should be learning as part of this wider journey?
Things to think about…
Recently we have all learned more than ever that you never know what’s around the corner so we should plan and act now. That means dealing with all of the horrible finance aspects you probably would rather not do:
- Put a will in place if you haven’t already.
- Think about putting ‘power of attorney’ documents in place, depending on your circumstances and age.
- Look at all of your outgoings and see if there are ways to reduce any of the bills.
- Check whether you have enough ‘Rainy Day’ savings on hand to cover short-term emergencies and longer-term issues relating to work.
- Review whether any insurance policies, such as income replacement is relevant to your circumstances.
- Think about addendums to your will, that advise loved ones of your personal finances and online accounts.
- Determine whether life insurance is needed, to cover major debts like a mortgage.
Problems with money are a major contributing factor in relationships breaking down. So, it is good to have open and honest conversations with your partner about finances and any worries you have. Come up with ways together that you can tackle things.
You may like to try and shop/spend money in a more mindful way:
- Maybe helping to keep the high-street is a priority for you, so celebrating artisans and shopping more local could be a step in the right direction.
- Have you enjoyed not spending money on certain things – like expensive sandwiches, taxi fares, coffee shop drinks, manicures, hair-treatments and more? Look at the things that you truly missed, and those that you have done quite nicely without.
Long-term money plan
Depending on your age, a long-term plan for finances can seem really daunting or just plain boring. However, time really is your friend in this regard – talk to any financial advisor and they will sing the virtues of time and compound interest!
Some questions to consider:
What age do you want to retire?
What level of income will you need to maintain the same standard of living?
Is owning your own home, and paying off the mortgage a priority?
How will you provide an income in your retirement?
‘Spend a bit, and save a bit’ is a great motto to live by – as well as ‘BE PREPARED’!Tweet