Covid-19 has impacted us in a myriad of ways and, for many of us, the job losses, reduced income and forced confinement caused by the virus have shaken our financial security and negatively impacted our emotional resilience.
Andy Chong, an Infinity financial consultant based in Kuala Lumpur, outlined eight things you can do as part of your financial planning strategy in challenging times such as these.
- Take stock of your current financial position – look at your incomings and outgoings and consider what adjustments you can make to put yourself in a better position going forward.
- Ensure you have adequate emergency reserves – while three months’ worth of expenditure is typically recommended, in the current climate consider a reserve of six months, or even more.
- Don’t follow the herd and think for yourself – today’s hot tip might be on tomorrow’s trash heap. Make sure you gather as much information as possible before making important investment decisions.
- Review any protection or insurance policies – ensure that your travel and life insurance policies are fit for purpose.
- Consider your financial legacy and seek appropriate help – look at what you have in terms of assets and what estate planning you can do to help your dependents going forward. Some financial housekeeping may be necessary to make sure you have the right tools in place.
- Always invest – into financial vehicles to build wealth long term but also in yourself. Channel your frustrations towards Covid-19 and the havoc it has wreaked in our lives into educating yourself and expanding your skills.
- Get professional help – a financial adviser can help if you are not sure what you are doing financially, if you need objective reassurance or if you get too emotionally involved when it comes to investing. Choose a trustworthy professional who has your best interests at heart.
- Be patient and kind to yourself – the pandemic has been unkind to all of us so treat yourself with kindness and nurture your mental health to bolster your emotional resilience.
If you’re seeking professional assistance with any elements of your financial planning, why not have a non-obligatory chat with us?
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