How to manage financial stress & anxiety amid COVD 19
May 05, 2020
COVID19 what a financial dilemma! This crazy pandemic hasn't just brought about a global health crisis it is also a global financial crisis. Millions of people around the world have lost their jobs as a direct result of the coronavirus, and those that still have jobs may be on reduced pay, hours and even fear they will become jobless in the future.
Finance has always been high up in the list of items that stress people. People often feel vulnerable, overwhelmed, stressed and anxious when it comes to their finances, but COVID 19 has added another level of stress. One which I feel will take some time for people to go back to their old money behaviors. We are not sure how long this will last and what the lasting effects of it will be.
Instead of pushing our financial worries, concerns and problems under the rug, we need to face them in order to move forward. Never has it been a more important time to prioritise your financial wellbeing.
Here is my list of ways you can reduce your financial stress, gain some financial resilience and begin to focus on the areas of life that are important to you, knowing you have a plan in place and you are on the right track:
1. Evaluate your current position
- You need to work out where you are at with your money right now
- Everything from what you spend, earn and save
- Find out what shape you are in financially
- Audit your accounts and understand your numbers
- Emergency fund - If you have learnt anything from COVID 19, it's that you need an emergency fund
- Build up your fund over time to have at least 6 months worth of living expenses to help you when the unexpected happens
3. Reduce your debt
- Pay down any debt you have
- Take advantage of the low-interest rates that are currently available
- Consolidate loans
4. Marie Kondo your bills
- Spring clean your bills
- Ask your providers for better deals
- Do you need to switch providers maybe?
- What can you reduce, cut or even cancel. Look at things you aren't using in this time of COVID19.
5. Pause memberships
- If you're not using your memberships, subscriptions or other recurring payments to gyms, for example, pause them. When life goes back to normal you can reactivate them!
- If you have always wanted to upskill yourself, learn more and earn more, there are many courses available for free through TAFE.
7. Avoid temptation
- Unsubscribe to marking emails for clothing stores etc. to reduce the temptation
- They will be sending your endless special offers during this time
- Emotional spending feels good for a minimum amount of time but is it worth it in the long run
- Take time out for yourself
- Take time to reflect on what you really want out of life