Have you been affected by the Coronavirus Crash?You certainly may feel like things are uncertain at the moment – we’re all in the same boat! It’s more important now than ever to look at your finances in the broader sense and start thinking about putting together a tangible plan to protect yourself from the fallout of COVID-19 (especially on a coronavirus crash). Laura Ann Moore is a Money Coach who aims to demystify money and help individuals feel empowered by their finances, rather than scared of them. She is here to explain how to feel empowered by your finances.
Laura: When a partner loses their job, financial responsibility can get pushed onto the one still working causing stress and a potential strain on the relationship. It is important to communicate, discuss options and next steps together to alleviate pressure and ensure you are managing it as a team. Your budgeting will depend on what percentage of your combined income has now been lost. Work out if your income alone will cover all monthly expenses for the household and If it does not, then you must adjust your outgoings and change spending habits. Try to remember that this scenario is temporary and whilst it might be hard to cutback on luxuries right now, they can be re-introduced once your partner gets a new job. Create two lists of expenses: One for all 'must-haves' to survive (e.g. mortgage, bills, internet, food, phone bill) and one for all 'nice-to-haves' (e.g. gym memberships, Netflix, Sky). Prioritise all 'must-have' expenses and work out the absolute minimum figure you could live off. Once you are confident your income alone will be enough to cover those expenses each month, you can then sift through the other list, and decide which ones you can afford to keep. Don't forget to factor in money for an emergency fund/savings.
1. “My partner got laid off recently and all the financial burden is now on me. How should I create a household budget for the rest of year?”
2. “I am a freelancer and I don’t have many savings in my bank account. Due to Coronavirus crisis, my income has significantly decreased, so how can I use my money wisely? Where should I start?”