These are uncertain times for all of us and money worries can be really stressful. Even if you’re OK at the moment, it pays to start planning in case money becomes an issue. The more you do now will save you time and energy – and importantly, money – when you might not be feeling at your best.
Create a budget
Work out what money you have coming in and what money you have going out – be as detailed as possible to capture everything. You can use this tool to help you understand your money. You can also use a budget planner.
Identify how you can reduce costs
Once you understand how much money you are spending and on what, create two lists – a list of essential items and another of non-essential items. You can then easily work out how much you could save if you stop spending on non-essential items.
Track your spending
Track everything you spend, even if it’s only for a few weeks, it will show you exactly how much you’re spending on non-essential items or habits and you’ll see where you can make further savings if you need to.
If you can, start saving or topping up your savings so that you have some money put aside for an emergency.
Check whether you have insurance policies that would cover your mortgage payments or replace some of your income. For example:
- Payment protection insurance
- Mortgage payment protection insurance
- Accident, sickness and unemployment insurance
These types of insurance are often offered with life insurance policies or mortgages and it’s easy to forget you have cover.
There is usually a minimum time period, which could be several months, before these policies pay out, so you should talk to your insurer to find out more, particularly if you are worried about redundancy.