How to create financial mind space in this Covid period
Never before, have we experienced such uncertainty in terms of our world, what the future looks like.
So, the question is what can we do in a practical way to create mind space so we don’t stay in a panic state where we cannot make rational choices?
- Realize this is not a permanent state of being and others are going through similar experiences.
- Let’s start with the basics, what can you control?
- Go through your budget, what are wants, what are needs, eliminate the wants for now. This and the next point should be consolidated between family members, it is a team effort!
- Track your spending, there is often a major discrepancy between what we think we spend and what we actually spend.
- Ensure you are the one communicating from your side first, if there should be any payments you can’t make. If you’re unable to pay a bill, contact your creditors right away. They may be willing to negotiate a payment schedule or waive late fees.
- Should you have investments stick to the plan that you and your financial adviser have created. Stay in contact with your adviser and ask for tips and any changes that need to be made. Stay off broker or trading platforms and avoid constantly checking up on your investments.
- Many financial institutions may decrease your life cover or disability, to lower premiums and review within 6 months without a full medical evaluation again. NB: Stick to a minimum of a quality hospital plan!
- If you are working from home and travelling much less, you can ask for a discount from your short-term insurance company.
- Be careful to make any new major debt if your future is uncertain.
- Although a debt holiday might seem like a good idea, only do it if you really can’t make the repayments. The outstanding amount will continue to earn interest and you will only be extending the term and cost of your loan.
- Illegal activities and “products” tend to soar in times like these, so please remember if the interest sounds too good to be true, it probably is.
- Should you be fortunate enough to still be employed, look at opportunities to start and build an emergency fund.
- The most important thing is do what you can, like with lockdown itself, stick to positive mind rituals whatever yours may be, exercise, meditation, reading about how others are coping through these times and celebrate where you have been able to make practical plans though there might have been discomfort involved.