Financial Well-being While In Lockdown

Income Loss – You’re Not on Your Own 

Some have seen a reduction in their household income. There are supports in place to help you through this period. Start by establishing what is available to you in terms of income support and start claiming it immediately. Also, establish what other social protection benefits may be available to you.

If you’re wondering how to apply for covid income relief payments or other payments, please take a look at government guidelines

Lockdowns are a very difficult time for everyone! First and foremost, your health is your wealth. Everyone needs to focus on looking after oneself, family, and their friend’s well-being. A big part of our overall well-being is financial well-being. Different people will have different experiences during this Covid & lockdown period. Loss of jobs and income has unfortunately been an outcome of the current crisis for some people. We have set out a few suggestions on how you can emerge from the current situation in the best financial shape possible whether your income has been affected or not.

Income Loss – You’re Not on Your Own 

Some have seen a reduction in their household income. There are supports in place to help you through this period. Start by establishing what is available to you in terms of income support and start claiming it immediately. Also, establish what other social protection benefits may be available to you.

If you’re wondering how to apply for covid income relief payments or other services, please take a look at government guidelines here for more information.

Family Budget

Firstly, take a while to look at every euro of your current spending. The purpose of which is to understand where your money is going and where there is discretionary spending. After that, compare this against your income levels – this will reveal whether you could have surplus money each month, or whether a drop in income means you just have enough to cover all of the bills.

If your income exceeds your expenditure, you should be saving money or adding to your pension fund. While the lockdown means there is less opportunity for discretionary spending, put your surplus cash to good use. 

However, if your current income level doesn’t cover the bills and you don’t have a “rainy day” fund to call upon, now is the time to get tough on the big expenditure items. Conserve whatever cash you can. Avail of the break-in mortgage payments from your mortgage lender to help you through the next few months. Can you save money on your mortgage interest rate or qualify to switch your mortgage? Negotiate with the likes of utility suppliers, i.e; energy suppliers, Sky, Netflix (entertainment providers). If you have two cars on the road, are both needed? Look at all other discretionary costs that may not be necessary over the coming months. Can you alter your habits here that will help you financially into the future?

The Importance of a “Rainy day” Fund

Murray & Spelman Financial Services advise all of our clients to build up a cash emergency fund. If your income has reduced and you have a safety net, now is the time to put it to good use. It’s prudent to use your emergency funds, or even surplus cash that you have in the bank as opposed to cashing in investments where possible. 

Where Possible, Keep Saving

In December 2020 alone, the people of Ireland saved a billion euro! There are many people whose income has been unaffected by the current crisis. In addition, people are spending less money while in lockdown. This is a great opportunity to bolster your emergency fund and to keep saving money into any regular investments or your pension plan. There is €125 billion on deposit in Ireland currently, earning almost no interest return. So rather than just hoarding cash on deposit with a Bank, Credit Union, or An Post, you should increase your direct debit monthly savings & investments and your pension. And if you don’t have either set up, you really should start! Your financial well-being depends on it. 

For more information about Pensions and how to how to get your head around them, check out our blog, ‘Pensions Explained without the Jargon!’.

We also recognise that your specific circumstances are different from everyone else’s. Murray & Spelman Financial Services are experienced in helping people to manage their money better and to make the most of their financial resources. As your Financial Broker, we are always willing and happy to have a chat with you about your situation. Feel free to pick up the phone to us.

Murray & Spelman (Financial Services) Ltd help you plan for your future, while you live for today!