Use Lockdown to Improve Your Financial Security (AD)

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It’s never been more important to review your budget and improve your financial security. At the beginning of 2020, very few people would’ve been able to predict just how severely the pandemic would impact all of our lives. Everyone has been affected by Covid-19. We have seen our day to day routines completely change, working environments adapt and the economy be turned upside down as we follow government guidelines on local and national lockdowns.

Those of us who used to work in offices are now working from home. Those of us who can’t work from home may see ourselves with reduced incomes or loss of job security. The kids have been off school (leaving less time for parents). Many of us can’t do our usual hobbies or meet friends. These are all major changes that many of us are struggling through.

The good news is that we can all be proactive and take precautions to ensure that we make it through these challenging times. You don’t need to face financial ruin at the hands of something that’s out of your control. Here are a few of the ways you can use lockdown to improve your financial security.

See if you are eligible for Government Support

The government has implemented a number of schemes to help you during this time. The economy is in crisis and they are aware that people are struggling.

You can use the support service via the official gov.uk website to find out what help and advice you can get from the government and associated organisations. You can find support with:

• what to do if you’re feeling unsafe where you live, or if you’re worried about someone else
• paying your bills, rent, or mortgage
• getting food or medicine
• being made redundant or unemployed, or not having any work if you’re self-employed
• what to do if you’re worried about going in to work
• self-isolating
• having somewhere to live
• mental health and wellbeing, including information for children

But please be wary – there are plenty of scam email/texts being sent out right now, don’t give out your personal information and always check the legitimacy of email/texts by logging in to official websites.

Protect Your Finances

The best thing you can do to improve your financial security is build up an emergency fund. An emergency fund is a sum of money that can be used to help navigate any financial emergencies. Experts recommend aiming to save up 3-6 months earnings (or enough to cover 3-6 months worth of expenses).

This is also the perfect time to check your cover. You can Protect Your Family by ensuring that you have adequate life and home insurance. There are also several other insurance options you could consider to fully cover the cost when things go wrong including breakdown cover, landlords insurance and funeral cover.

Review non-essential spending

If your income has reduced as a result of lockdown or job security is now a worry, one step you can make is to reduce your outgoings. If you can no longer afford something and it can be cancelled, it’s time to quit paying for it. Review music streaming services, TV streaming services, luxury purchases or other spends.

I review all my monthly spending at least once a year. You could check to see if you could be getting a better energy deal, see if you could downgrade to a cheaper phone contract or look to reduce how much you spend on your weekly food shop.

This one is simple, improve your financial security by spending less on things you don’t need.

Find a side hustle

If your income is outweighed by the cost of bare necessities, you should look to pick up extra work. Many grocery stores are looking for staff to stack shelves and operate check outs right now to deal with the surge in demand. Farmers are looking for fruit pickers. Some companies are looking for temporary remote workers to cover staff who are unwell.

A side hustle is a great way to improve your financial security and offers a flexible approach to extra income. Starting your own side hustle can also open up new opportunities. I began looking for side hustles a few years ago and now earn around £1000 a month extra on top of my monthly salary from side work.

There are some brilliant side hustle opportunities that you can do from home including blogging, remote admin work, market research, surveys and affiliate marketing.

More Ways to Improve Financial Security

Ways to Stay Productive During the Lockdown 

My Most Recommended Money Saving Tools

Save Money on Your Weekly Shop

The Best Apps to Better Manage Your Money

How I Plan to Pay off My Mortgage Early

These are just a few different changes that you might want to implement in your life for the time being in order to improve your financial security. Hopefully, the above advice and information will serve as good guidance!