Setting goals during a pandemic

Unless you’re an accountant or financial planner, 1st July doesn’t have quite the same significance as 1st January! However, it is a new financial year and in 2020 it’s probably not a time many are celebrating. With the impacts of Covid-19 hitting many financially, personally and socially, reflections of new financial goals are likely to be significantly different.

New Years are generally a time when we reset our personal goals. While this is often focused on personal goals such as relationships, health and well-being, it is also prime opportunity to review your financial goals. As a financial adviser, I encourage clients to set personal goals for each new year and beyond. These goals often revolve around saving for holidays and how soon can I retire, but focus is now certainly on other aspects of our financial wellbeing.

It is often difficult to imagine ‘worst-case scenario’ until you are in that position – what if I lost my job? What if my partner or I were sick and couldn’t work? What if there was another GFC? While the going is good, it’s hard to imagine life any other way. The Covid-19 pandemic has certainly highlighted that life is unpredictable and while we can’t control what is currently happening in our world, we can plan to reduce the impact it has on our financial future and therefore our wellbeing.

There has been many articles written with great tips for those who have been financially impacted by Covid-19. If you are in the fortunate position of still holding your employment/business/income, you are in the perfect position to review your goals and plans for the new financial year and beyond:

What if I lost my job or business?

• Have I set up a savings plan to ensure I have access to 3 – 6 months of living expenses put aside for ‘worst-case scenario’
• Where can I trim expenses to build this emergency fund?
• How much am I currently spending and where is it going?
• Am I in front of my mortgage payments or can I pay extra and build this buffer?

What if my partner or I got sick?

• What personal insurance do we have?
• What does it cover for?
• How long will it cover for?
• Who can I contact if I need to claim?
• Are there circumstances I can’t claim for?

What happens to my super if we have another GFC or Pandemic?

• Where is my super invested now how/why was it impacted when Covid-19 hit?
• What impact has this had on my retirement plans?
• How can I gain a better understanding of financial markets and the options I have for super?
• If I’m closer to retirement, should I reduce risk even if it means a lower return?
• Am I comfortable with market dips as I have 20 – 30 years until retirement?
• Should I be putting more into super so I don’t have to rely on government pension when I retire?

Seeking advice from a professional is like having your own financial personal trainer – tailoring a plan to what you want or need to achieve, monitor that plan to help you stay focused and on track and help to alter plans if circumstances change or life throws us a curveball like Covid-19!