For many readers, spending more time at home than usual has become the new normal. And with the added time at our disposal, many of us have become caught up with new hobbies and interests. Baking banana bread is now a thing and the front gardens on our road look like some residents are competing in the Chelsea Flower Show.
But amid all this zeal and activity, one area we seem to be putting on the long finger is tackling our finances. This is unfortunate because believe it or not, you can achieve a huge amount of progress in organising your financial affairs in just a short space of time.
For most of us, the biggest barrier to starting is knowing where to begin, so with that in mind, we’ve developed some hints and tips on how to ‘COVID’ your money. COVID, in this instance, stands for Control, Options, Vet, Insure and Direct.
Control your spending
Some of us have got into a habit of ignoring our current spending. We might think it’s okay. We might hope it’s okay, but the first step is to understand it, then learn how to control it. Some use a single bank account to run their day-to-day spending, while others may use a few - including a credit card. Sit down and work out, across all these accounts, what is going in and what is going out.
You need to make a distinction between what you are spending and what you need to spend. You might not like the picture that emerges, but it will be an accurate snapshot of what’s going on with your finances, and can be really important in helping you decide how you’ll spend your money going forward. It’s your money, so take these steps today to control how you spend it.
Options
Understand what options are available to you, particularly if you are financially impacted by the COVID-19 Crisis. Are you concerned about your mortgage repayments? Please don’t feel uneasy about talking to us as soon as possible. The first step is to realise that we are here to help. Contact your local branch and ask about speaking with one of our mortgage specialists who will be able discuss any concerns you may have with meeting your mortgage repayments. The earlier we know about any concern you may have, the sooner we can work together to quickly identify the best solution to get you back in control of your finances. You can find how we can assist you at www.boi.com/mortgagerepayments.
If you lost your job, there are also a number of Government schemes that might help, but these are changing on an ongoing basis, so it pays to do your homework. If you need help with budgeting, there is help available from organisations such as MABS – you can find out more about their services at https://www.mabs.ie/en/. The main thing is not to suffer in silence. There is help out there, and there’s never been a better time to seek it out and find out what options are open to you.
Vet your bills
Take out all of your utility bills, whether they’re paper-based or electronic. Did you sign up to a deal for gas or electricity with a friendly representative who called to your door? Has that deal expired and are you now on a very expensive tariff? A simple phone call could save you a lot of money. Some of the comparison websites can help you to find real value for money - they are usually free and easy to use. You may also be watching a bit more TV at the moment, but be careful about signing up to additional TV packages which often tie you into a contract for a year or more.
Also, check your gym membership – do they pause their monthly bill if they are closed due to Covid restrictions, or are they still taking money from your account? And make sure to check how many credit cards there are in your household. Are you paying annual fees and government stamp duty on all of them? This form of regular vetting can drive better value and make your money go further.
Insure who and what needs to be insured
At times like this, make sure that the family breadwinners(s) are fully insured. What would happen if they got sick, or worse? If you have questions about your insurance cover, you can ask our advisors who you can meet with them virtually, for added safety and security. Open up that health insurance policy and do something you may not have done before – read the accompanying document and understand what is actually covered.
You might be surprised that you are covered for more than you thought. Also check if you have claimed back for health costs you incurred last year. And have you claimed for medical expenses that you are entitled to claim from Revenue? This is all well worth exploring and can yield some very pleasant surprises.
Ask Direct questions
Sit down as a household unit or family and ask some direct questions. “How would the family cope if something went wrong in terms or illness or death?”, for example. These are difficult questions - but they need to be asked and you need to understand the implications for you and your family.
What will you do if the employment position does not improve in the near future? Up to now, you may have relied on Plan A, but now you may need to work out a Plan B. As part of this difficult conversation, check if you have a will in place. If not, work out who needs to be looked after, who would act as executors, who would look after any children. These are tough questions, but while we all tend to hope for the best, it pays to be prepared for the worst.
When you have completed your ‘COVID Your Finances’ exercise, the important thing is to take the necessary steps to put your plan in place. There is little point in thinking about positive actions you should take unless you go and do something about them.
So don’t put it on the long finger any longer. Use some of your newfound time to COVID Your Finances – and see for yourself just how much healthier your financial picture can be.
Disclaimer
Life assurance and pensions products are provided by New Ireland Assurance Company plc., trading as Bank of Ireland Life. New Ireland Assurance Company plc., trading as Bank of Ireland Life is regulated by the Central Bank of Ireland.
Advice on Bank of Ireland Life products is provided by Bank of Ireland, trading as Bank of Ireland Insurance & Investments. Bank of Ireland trading as Bank of Ireland Insurance & Investments is regulated by the Central Bank of Ireland.
Bank of Ireland is a tied agent of New Ireland Assurance Company plc trading as Bank of Ireland Life for life assurance and pensions business.
Members of Bank of Ireland Group.
