Financial Spring Cleaning During a Pandemic – 5 Steps to Follow
The pandemic has had an impact on a global scale but it has also forced people to stop and think about their finances. We spent less money during the early stages of the pandemic and some, unfortunately, lost their jobs or changed careers. So, with Spring arriving, now is the ideal time to review your finances at the start of the new season.
REVIEW Your Budget
Throughout the pandemic, it is likely that your spending habits have changed. You might not have spent as much on dining but you might have spent more on groceries. As a result, you might want to amend your budget so that it aligns with your expenses. At this point, you might want to think about any new habits that you might keep while you might want to avoid significant change until you have considered your needs moving forward. Furthermore, you might also want to place more of your earnings into your savings as you might have used your savings to top up your income during the pandemic.
Create New Financial Goals
The pandemic has made people reassess their future so now is a great time to set new financial goals. This might involve a big holiday or finding a job that is more fulfilling. If you change your goals and find that a lot of your spending goes on daily expenses then you might need to change your budget.
Additionally, you might also want to consider whether you are prepared for the next problem. You might realise that you want to enhance your savings or make different investments. Considering these things will help you to create new financial goals and create a plan towards them.
Think About Your Insurance Cover
Our homes became a central part of our lives during the pandemic. From lockdowns to isolation and even working from home, it became our safe haven. However, you might have more expensive items that enable you to work from home while house prices have also increased. So, you might need to increase your insurance coverage to reflect your change of circumstances.
As we spent more time at home, many of us decided to increase our spending on subscriptions such as Netflix, Magazine apps, Disney+ and many other services. While they enabled us to fill the spare time that we had, collectively, the subscriptions can mount up.
So, as the worst of the pandemic is behind us and with us getting back to some form of normality, now is the time to cancel those subscriptions that you no longer need, enabling you to bring your budget back in line with normal circumstances.
Your spending patterns might have changed and if that is the case, then you might want to think about applying for a new credit card with better benefits. This will enable you to maximise your new lifestyle but before you do this, you should obtain information on your spending summary along with any rewards that you earned.
Did you find that you used those rewards in the right way and did you maximise the rewards you earned? If your credit card doesn’t reward you for the way in which you use it, then now is the time to think about applying for a new credit card.
Take a look at this page from Forbes which lists out the best credit card offers in the UK at the moment.
So, the pandemic has clearly changed the way in which we approach our finances but now is the ideal time to get them back on track and working harder for us. With some simple planning and changes, it is possible to give your finances a spring clean, giving you the potential to change your financial goals and plan better for the future.
At Headway Wealth, we’re dedicated and passionate about helping you reach your full financial potential.
Through our Making Headway process we can help you create a financial plan that will help you to decide what you need to do today to create a brighter tomorrow.
Contact us today to learn more.
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