Fight to keep your bank account full SOPHIE ELSWORTH
PERSONAL FINANCE WRITER
WE’VE elbowed each other in supermarket aisles to get our hands on toilet rolls – and we’ve even thrown punches.
We’ve cleared the shelves of pasta, rice, hand sanitiser and paper towels, and rushed out to buy chest freezers to stash our supplies.
The coronavirus panic has set in but it’s times like these that calm is needed – especially when it comes to household finances.
Here are five important things to consider to ensure you are in a good financial place.
1 STASH SUPPLIES
Believe it or not I’ve always had a fear of running out of toilet paper – so much so I always have ample supplies in the cupboard.
And, finally, this weird fear has paid off in droves. When everyone was rushing out to the supermarket to stock up, I could sit back, relax and watch the madness from afar.
While stashing toilet paper is ridiculous given the majority of it is made here, having supplies of essentials, including medicines, at a time like this does make sense.
2 JOB SECURITY
In recent weeks, retailers, hoteliers, restaurateurs and tourism operators have been forced to lay off staff.
Job security is so important but for many of us it can be easier said than done. Casuals and contract workers are most at risk and the first to go when companies cut staff.
Keeping your skills up so you are in a good employment position is vital.
3 TOO MUCH DEBT
Australians have the second-highest household debt levels in the country, behind Switzerland.
Many of us have signed up to whopping mortgages and are also carrying too much household debt, such as credit cards and personal loans.
But all of this comes to a head at some point. Having debt means you have to keep bringing in a regular income to survive.
So there’s no better time than now to reassess your debts, to see if you can consolidate, reduce and, ultimately, wipe them.
4 DIVERSIFIED ASSETS
It seems cliched but it’s the truth when it comes to finances: don’t put all your eggs in one basket.
Having your money or assets spread in multiple places is crucial, especially with the sharemarket volatility in Australia and overseas.
There are some key places to spread your wealth and it’s most commonly across cash, shares, property and bonds.
This means you can ultimately ride the wave when each asset classes go up and down.
5 EMERGENCY FUND
No matter what happens with the coronavirus fallout – whether you lose your job or end up in tougher financial straits – having an emergency fund is key.
I’ve always been petrified of being jobless so my safety buffer is building up as much cash as I can in my mortgage redraw and offset account, in case I end up with no income.
If something goes wrong I then have somewhere to turn.