Unprecedented, challenging, uncharted, trying, uncertain – these are just some of the words people have been using to describe the times we’re living in. The reality is, most of us have never been through anything like this, and for some, the path to recovery may take longer than others.
But with Covid-19 bringing our world to a standstill, we’re also faced with an opportunity to rethink our lifestyle and make changes for the better. Here are some tips to help you build resilience into the ‘new normal’.
1. Focus on rebounding
If you’ve been affected by Covid-19 (emotionally, financially or both), now you’ll need to focus on finding your balance again.
For example, your income may have reduced, or you might have found yourself suddenly out of work. If so, as difficult as it may sound now, there are proactive steps you can take to get back on your feet faster:
- Limit your outgoings as much as possible.
- Check what assistance options may be available from the Government, as well as from your insurance provider or mortgage lender.
- Do you qualify for a financial hardship withdrawal from your KiwiSaver? We can help you understand what this option may entail.
Importantly, think about the opportunities ahead. You may consider using your talents in a completely different industry (click here to explore some ideas). Or you might even find the motivation you need to launch your own business: Business.govt.nz has a wealth of helpful resources and tips to help you get started.
Whatever the course of action you need to take, our SHARE financial advisers are here to give you guidance and expert support.
2. Redefine your priorities
As you focus on getting back on a more solid footing, take all the time you need to think about your priorities going forward.
Over the past few weeks, life as we knew it has literally stopped in its tracks. We have spent a lot more time at home, and perhaps felt the need to renovate it or ‘upsize’. Many have been exercising on YouTube or perfected their baking techniques; some have put remote working to the test for the first time.
Now that restrictions are easing, what would you like to take with you ‘on the other side’? What have you missed – and what haven’t you missed at all?
Think about your needs and wants. And of course, if you have any financial goals in mind – big and small – please don’t hesitate to contact us: our SHARE financial advisers are here to help.
3. Consider the lessons you can learn from this
As we’ve seen, recent events have thrown everything under a different light, including many of our rock-hard certainties.
If you’d like to build a more resilient ‘you’, start by taking on board any lessons that can be learned. Here are some of those, from a financial point of view:
- Risk cannot be predicted – but insurance can help you protect from its financial impact.
- Share markets downturns can always happen, no matter how well markets have been performing in recent years: the key thing is to stay invested in a fund that’s right for your risk profile, your investment horizon and your goals.
- Having high level of debt can leave you exposed, so it’s a good idea to pay your debts as fast as possible, whenever possible.
- You may be able to spend less or better (and save more money on a regular basis).
4. Work towards your goals
Once you have defined what your priorities are, it’s time to create new habits.
After all, most of our routines have been upended. Not only that, but the world we’re moving back into is not the same as it was just a few months ago. This gives us an opportunity to reinvent ourselves and rethink the ways we do things.
So take a moment to consider what has worked and what hasn’t in the past. What has prevented you from saving more money, for example? Have you always put insurance in the ‘too hard’ basket? Have you recently been able to repay your credit card in full, and found that you probably won’t need to use your credit card as much as before?
Whatever your objectives might be, keep us in mind: we can help you create new financial routines and set yourself up for success.
5. Don’t be afraid to ask for help
Change can be unsettling, but it can also bring opportunity. And sometimes, a little help can make a big difference. So don’t be afraid to ask for help, whether it has to do with strengthening your emotional wellbeing or – in our case – setting your financial life on the right track. Please get in touch with a SHARE financial adviser to discuss your financial needs.
Disclaimer: Please note that the content provided in these articles is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your specific situation. Before making any decisions based on the information provided in these articles, please use your discretion, and seek advice from your SHARE Financial Adviser.