THE Covid-19 pandemic has turned the lives of many Filipino families around the world upside down. Job loss, illness and distance learning have all taken a toll on our finances. If you’re like many families, you may be struggling to make ends meet.
The good news is that there is hope. By taking a few simple steps, you can create a post-pandemic financial plan that will help your family weather future storms.
1. Review your expenses
The first step to creating a post-pandemic financial plan is to review your spending. Take a closer look at where your money is going and see if there are any areas where you can cut back. For example, you may be able to save money on your grocery bill by planning your meals and cooking more often at home.
2. Create a budget
Once you’ve reviewed your expenses, it’s time to create a budget. This will help you track your spending and ensure that you are not overspending in any given area. Try to be as realistic as possible when creating your budget and don’t forget to account for planned and unplanned expenses.
3. Build your emergency fund
One of the best ways to protect your finances in the event of an unexpected crisis is to have a well-funded emergency fund. Try to save enough money to cover at least three months of living expenses. This will give you a cushion to lean on if you suffer a job loss or other financial setback.
4. Invest in your future
In addition to saving for emergencies, it’s also important to invest in your future. This can include things like contributing to a retirement account or investing in a college savings plan. By taking steps to secure your financial future, you will be better prepared to face the unexpected challenges that come your way.
5. Create a debt repayment plan
If you are in debt, now is the time to create a repayment plan. Start by making a list of all your debts, including the interest rate and minimum payment for each. Next, develop a strategy to pay off your debts as quickly and efficiently as possible. You may want to consider consolidating your debts or transferring them to a low interest credit card.
6. Develop a job loss plan
Nobody likes to think about the possibility of losing their job, but it’s important to have a plan in place in case it happens. If you or your partner are at risk of losing your job, make sure you have enough savings to cover your living expenses for several months. You can also consider finding a part-time job or self-employment to supplement your income.
7. Review your insurance coverage
Your family’s needs will change after the pandemic, so it’s important to review your insurance coverage to make sure it still meets your needs. For example, you may need to increase your life insurance coverage if you’ve added a new baby to your family. You may also consider purchasing long-term care insurance if you have elderly parents or relatives living with you.
8. Make a will
If you don’t have a will yet, now is the time to create one. This document will set out your wishes regarding the distribution of your assets in the event of your death. If you have young children, you can also name a guardian in your will.
9. Update your beneficiary designations
In addition to writing a will, you also need to make sure your beneficiary designations are up to date. This includes things like your life insurance policy, retirement accounts, and investment accounts. If you’ve recently married or separated, it’s especially important to review your beneficiary designations to make sure they reflect your current wishes.
10. Get professional help
If you feel overwhelmed with the idea of creating a post-pandemic financial plan, don’t hesitate to get professional help. A Certified Financial Planner or Certified Financial Advisor can help you develop a personalized plan that meets your unique needs and goals.
The pandemic has been a financial shock for many families. However, by taking the time to create a post-pandemic financial plan, you can protect your finances and ensure your family is prepared for whatever is to come.
Janice Sabitsana is a graduate of the Registered Financial Planner program and hosts the blog www.thepinayinvestor.com. To learn more about personal financial planning, attend the 98th RFP in October 2022. To inquire, email [email protected] or text at 0917-6248110.