Make your money work for you during COVID-19 and beyond...
Alex Financial Services is on a mission to change the way we engage with our finances.
Kate Woosey founded Alex after seeing a lack of professional financial advice and resources available for freelancers, SMEs, and millennial clients. They offer zero jargon, relatable advice to support individuals and businesses in achieving their financial goals. Focusing on education and proactive work to increase our client’s financial security and wellbeing.
Helping people through key life events and knowing that people are financially protected should the adverse happen is central to what they do. From protecting your income and buying your first house, through to retirement planning, they will be on hand to guide you at every stage. Together you can move the dial towards creating a secure financial future.
Check out Kate’s top tips for evaluating your finances at this time and try out her Goal Planner and Budget Planner.
1. Take a breath and think about what you can control
The most important thing initially is to think with clarity, if you are feeling overwhelmed give yourself some headspace so you can come to the issue with a clear mind.
2. Check your benefits
There are lots of benefits out there at the moment, before you do anything it’s best to find out your full financial situation. The biggest schemes for personal COVID-19 payment support include:
Self Employment Income Support Scheme
Coronavirus Job Retention Scheme
Universal Credit
Statutory sick pay
Self-assessment tax deferral from July 2020 to January 2021
You can find out more on the Gov.uk website and if you have any questions feel free to get in touch.
3. Track your spending
Use this time to review your budget, if you are worried about income, don’t commit to any new spending. Once you have a clear idea of what’s expected to come in and your committed expenses you are best placed to make constructive changes.
Try to plan ahead with things such as shopping to reduced costs and cut any unused subscriptions to save.
If you find you are in deficit, look for ways to make up the difference this could be from:
Mortgage payment holiday (be aware that this will push your expenditure up after the payment break).
Speak to your bank on any credit card or loan repayment holiday.
See if you can get a rent reduction from your landlord, it’s in their interest to come up with a workable solution for you both. Be aware that landlords do need to give you a three month notice period if they intend to seek possession.
Check if you can gain additional assistance from your council as there’s extra budget for this purpose.
You may first want to speak to family and friends who can give you a cash injection while you figure out the next step. Make sure you establish terms beforehand as this gives clarity later on.
If you have tried all other options, as a last resort look to get a 0% credit card for emergencies, also note that some banks are offering 0% interest-free buffer of £500 on overdrafts.
4. Look at your money habits
When we get stressed we can often increase our spending to feel more in control. Try to break this cycle as it will inevitably make the situation worse if you have money worries.
If you have the spare cash, try to build in more constructive habits such as creating a direct debit to help you save or pay off debt each month, likewise with pensions. A key thing here is to give your savings a purpose to help you commit.
5. Think about future learnings
Take time to review your future financial standpoint. Look at your pensions and insurances to check your financial health. Likewise getting a will in order especially if you have children.
Make some space to plan out your goals in the short to long term to give yourself actionable points to address. This can help give a better sense of purpose and wellbeing.