We have now lived through 71 weeks of the COVID-19 Pandemic. For many, this has been a time of immense financial hardship, particularly for those who may have been furloughed or have even lost their jobs.
The initial months when no one thought this would last, helped some look at their finances. For many; there was not the commute to work, the bought supermarket lunches and the usual day to day work type expenses. Public transport fares did not have to be paid and fuel for cars was also put on hold.
As the time had gone on and many individuals “settled” into the home working culture, many have been able to save quite significantly, as lockdown and restrictions eased more money was pumped in to the economy. Now, as we look to ease the restrictions completely people are beginning to think and plan ahead.
If you are one of these people, how are you going to use yours or, will you continue to save? If you weren’t in the position to save during lockdown due to other financial commitments and now need to re evaluate your money and how you are able to spread it further, you may want to consider completing a financial heath check-up.
Financial health check-up
You may have heard of the term financial wellbeing and wondered what it is and how people get good financial wellbeing.
The most logical thought is that we need to really understand our finances in order to have good financial wellbeing.
That includes:
- Looking at our budgets (the money we have coming in and going out)
- Maximising our incomes through understanding what benefits you can claim
- Learning how to get the best deals on utilities
- Understanding which are the most cost-effective shops
While all this financial education is vital, it does not automatically equal good financial health or wellbeing. Salary Finance has done some work recently on the myths of financial wellbeing, looking into the difference between behaviours that are driven by our knowledge and those driven by our hearts.
So what does that mean? Well I guess there are the practical things, saving for a house deposit, a car, work on the house and the “bigger” projects that most have at some time in our life.
There are the behavioural spending “habits” and, what might those be for you? Are they practical and affordable? What could you do to make them so?
Then there are the things that “drive” our hearts…the wishes, the dreams often vs the reality. For example travel, exotic holidays then the battle we often go through trying to decide if it is a “need” or a “want?”
For sure, the Pandemic has given us opportunity to consider what we really want, what we need and to look at the practical consequences of those things.
How do I improve my financial wellbeing?
This is almost the million-dollar question; and it doesn’t just link to our finances. Think about everything that you know about making healthy food choices and how often you should exercise – do we always make the right choices? Those choices will most likely change as other factors come into play. Those factors are that of the heart.
We may eat out when we’re happy, sad, celebrating or commiserating. Exercise could take a back seat depending on the day that we’ve had, or the activities of the evening before.
Life isn’t straight forward, and nor should we pretend it ever could be. The same logic can be applied to our finances.
Yes, we should be arming ourselves with knowledge, we should be planning how much money we must spend on certain items – but we must also understand that this isn’t a fool proof way to good financial wellbeing.
People may find that they spend more money when they are stressed, tired or sad. Equally, we may reward ourselves by spending when we’ve had good news – or for a special occasion.
Especially over the last few months, people may have found that they have spent more in certain areas to give themselves a sense of control. A good way to start controlling these emotional behaviours is to firstly be aware of them.
If you start to feel guilty when you spend money, take that as a cue to check in with yourself – what else is going on?
How does money make you feel?
Taboo around debt and money has long been a barrier for people getting the help and support that they need. But the interesting thing is that usually, the quicker that someone seeks help, then the less debt they could have built up.
Free debt advice provider, PayPlan, knows that a third of people wait on average three to four years before they seek help. Interestingly, the number one piece of feedback that PayPlan’s experts get back is that ‘I wish I’d got in touch sooner’.
Understand your current thoughts towards your finances
There are no right or wrong answers to the five questions below. Instead, use them as an indicator of whether you need to change something in your life or if you feel they are spiralling out of control.
- Do you ever feel guilty about spending money? If so, think about why that could be.
- Are you often worried about the amount of money that you have?
- Do you feel comfortable talking about money with loved ones?
- How happy are you to open a bill, or would you hide it and put it off?
- If you are struggling to make repayments, how does it make you feel to speak to a professional to get help?
If you are experiencing problems with finances or dealing with debt, you can also contact Care first. Care first are an independent, leading provider of professional employee support services. Care first employ professionally qualified Counsellors and Information Specialists, who are experienced in helping people to deal with all kinds of practical and emotional issues.
We recognise that having money worries and/ or being in debt can make you feel isolated, scared and anxious. It has a negative effect on your work, your health and your family. Making that initial request for help is always the most difficult, but once you have made that initial call you have taken the first step towards getting the right help to a better quality of life.
Care first Counsellors are available 24/7 to support you with the emotional impact of financial difficulties.
Most people delay dealing with their money problems longer than they should. Finances are a core part of our lives and can be the root of many issues. Asking for help early on may help prevent problems later down the line. A good starting point would be to talk it all through confidentially with an Information Specialist at Care first, who will help you make informed choices about what to do and how to do it.
Care first Information Specialists are not Financial Advisors but are money trained experts, so whether you are at breaking point and need ongoing guidance to resolve debts, or just have a simple question – our Information Specialists are here to help with a range of issues, some of which include; debt, budgeting, rent/mortgage arrears, reduced income, tax, benefits and many more.
All employees are eligible to use Care first, our services include; telephone counselling, information services and online support. Call Care first on the Freephone number provided by your organisation and you can speak to a professional in confidence.
If you would like to view the Webinar on ‘How Care first can support with financial concerns’ this is being delivered live on Thursday 29th July at 12pm. You can register to join the webinar at:
https://register.gotowebinar.com/register/3816246946639467276
If you are unable to join the webinar live, a recording of the session can be accessed using the same link above after the webinar has taken place.