Living through the coronavirus pandemic is bound to cause some financial insecurity.
While some may have saved on commute costs or found time for new side hustles, others have lost jobs, seen earnings fall, and struggled with the general stress of life under Covid-19.
It’s only natural that we feel increasingly lost and worried about our financial situation.
A survey of 2,001 adults by Lloyds found that a quarter of single people are more worried about their financial situation due to the pandemic, with concerns about not being able to make ends meet, having spent all their savings, and worries about job stability.
Nearly one in four said they are worried about covering costs for their weekly food shop.
It’s high time we feel more in control of our money, so to help us all feel a bit more confident in handling our finances (and less terrified of checking our bank balance), we chatted with Jo Harris, the managing director at Lloyds, for her five essential tips to tackle money worries.
Talk to someone you trust
‘Talking about money with your loved ones can sometimes feel difficult or uncomfortable, so these conversations are often avoided or put off until another time,’ says Jo. ‘But if you are struggling with money, or worried about making financial decisions on your own, talking to a trusted family member or friend who can give you honest advice can really help.
‘For advice on how to start those conversations you can also visit the Lloyds Bank M-Word Hub for more guidance.’
Give yourself a proper budget
If you’ve just been spending and saving without having a proper look at your average outgoings, now’s the time to change that.
Sit down and take an honest look at your finances, allocating a reasonable budget for each expenditure – including regular costs like rent and phone bills as well as money set aside for entertainment, eating out, and all the fun stuff.
‘Many people are feeling the strain this year and have been forced to reconsider how they spend their money,’ says Jo. ‘During these uncertain times, it’s worth taking the opportunity to have a close look at your finances to prioritise outgoings and set up a budget.
‘A good place to start, is to keep a log of expenditure across the month, to work out what non-essential spending you could consider cutting back on and what a realistic weekly or monthly budget might look like.’
Start small when making regular savings
It’s tempting to go hard when you’re initially upping your savings, moving over a massive chunk of your paycheck so you’re not tempted to spend it.
But when later in the month you have to dip into your savings to cover unexpected costs, it can feel really disheartening.
It’s better to start small and build up towards saving more as you learn what works for you.
‘If you’ve been able to reduce your spending on non-essential items this year, it’s worth thinking about putting this money aside,’ says Jo. ‘Whether that’s an extra £10 or £50 per month, you can slowly build up an emergency fund to rely on when times are tough, or to build a savings pot to put towards future goals.’
Don’t hide from debt – and prioritise clearing debt before you focus on saving
Jo says: ‘Where you can, reducing your debts through additional payments is a good way to improve your financial wellbeing.
‘For many people, the burden of debt really adds to money worries, so if you have extra funds available, speak to your lender about overpaying. This could reduce your debt more quickly and you may find it also increases your confidence in your ability to meet your financial goals.
‘If you feel your debts are unmanageable, it’s always worth speaking to your bank to see what support they can offer.’
Establish clear goals
A good goal – in terms of money and everything else – is SMART, meaning it’s specific, measurable, achievable, relevant, and time-based.
Keep that in mind and come up with a specific goal for your savings, with a deadline and a specific – but reasonable – amount of money in mind. This can help you to stay motivated to save.
‘To build your confidence, it is worth starting by setting small, achievable savings goals,’ says Jo. ‘By being realistic with how much you can put away, and by setting deadlines you are able to stick to, you can form habits and track successes more easily. Soon the big goals will feel less daunting.’
If you want more tips and tricks on saving money, as well as chat about cash and alerts on deals and discounts, join our Facebook Group, Money Pot.
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Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
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source https://metro.co.uk/2020/10/23/money-expert-shares-five-tips-for-feeling-confident-about-your-finances-amid-coronavirus-and-beyond-13468472/
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