The coronavirus pandemic has hit many people hard financially although if you are able to work or if you are furloughed on 80% pay then we hope things are not too bad.
That said, business owners that get paid in dividends will receive little help with their pay and self employed may not receive help until June at the latest, this may prove a tough few months for many.
We all need to have an emergency savings plan.
If your money is already invested in ISAs and pensions, you should hole some in cash as a defence for market falls and in the case of ISAs ensure that you have access to some of your savings in an emergency.
For those who have no savings, now is the time to plan. Whether you save £1 a week or can afford £50 or £100 per week, we each need to revisit our living expenses to see what money could be saved. Did you really need the latest TV or phone? Do you really need 3 different TV subscription packages? Do you really need gym membership when the streets, your bicycle and the sea are free? You could buy some weights for home?
What we are saying is you need to plan to save with a modest emergency fund. Ideally make cut backs in your budget and target saving for at least 3 months living expenses and ideally 12 months. We know this is a long, arduous task for many but emergencies in all our lives will come and go and as they say in the scouts “Be prepared”.