Impact of financial stress & anxiety on women during COVID-19

As the measures to curb the spread of COVID-19 step up to another level, an increasing number of Australian women have felt an impact of financial stress and anxiety during COVID 19.

Women are facing unexpected financial challenges brought on by the economic downturn in the financial markets and job losses. Also the worry on our immediate families co-workers and community.

We know that so many Australians are feeling vulnerable right now. Given we’re not sure how long this virus and measures to curb the spread will last.

All of this can quickly add up to overwhelm and a feeling of financial stress. Even if you haven’t yet felt an impact on your finances, the fear of what might happen is equally stressful and anxiety-inducing.

The government has taken unprecedented action to provide $17.6 Billion of economic support to encourage investment and keep people in jobs.

On an individual level, it’s time to prioritise our financial wellbeing and take action to get our finances in shape as we weather this storm. After all, prioritising your financial wellbeing is a form of self-care.

So here are ideas and tips to help you avoid financial stress and anxiety in the coming months:

Take Stock Of where you’re at Financially

With the impact of financial stress & anxiety on women during COVID-19. It’s the perfect time to sit down and take inventory on where you stand financially.

Especially for women it’s so easy for us to get caught up in day to day routines with family.

Dig out your loan statements, credit card bills and utility bills, memberships and subscriptions.

What are you paying?

Is there a better deal out there?

 A quick google search of like-for-like products and services will show you what other providers are offering.

If it’s a better deal, see if your existing provider can match it or switch to save! Check out comparison sites such as www.finder.com.au or www.canstar.com.au

Work out where you’re at with your money right now. Write down a list of everything you:

Own –

Owe –

Earn –

Spend –

This is your starting point and your method to find out what kind of shape you’re in financially.

Here is a free budget planner to make life easier…

https://www.nerdwallet.com/article/finance/budget-worksheet

Pay down any high interest debt

If you have a debt with an interest rate above 10% pay it off ASAP.

This kind of debt is expensive and taking you backwards. Direct any spare cash to knocking it over and fast.

After that, if you have any loans with an interest rate above 5% keep paying them down but it’s ok to focus on saving at the same time too.

Many banks are also very sympathetic to the current situation so give your lender a call and see if they are offering a financial hardship plan or if you can defer any payments.

REMEMBER: If you are really struggling or have been let go and don’t know what to do, please consider the National Debt Helpline , a service that provides free access to financial counsellors who can help you figure out a plan to move out of debt. 

Start an Emergency Fund

Every woman should have a separate savings account, often referred to as an emergency fund.

This is money sitting in a separate high-interest, fee free account and there to get you out of a tight spot.

If you’re just starting out aim to put aside $1000. Over time, build this up to the equivalent of 3-6 months’ worth of living expenses.

To Sell or Not to Sell -Stick to Your Goals

If you have any existing investments outside of Cash, you might be tempted to sell your shares or investments.

Unless you planned to sell now, stay the course with your original investment plan. Take a deep breath and remember this too shall pass and your investment will recover with time.

If you sell your shares when their value has plummeted you will actualise that loss so instead, hold onto your shares until the market bounces back.

Historically we know that the market has always recovered. So don’t stress if the value of your folio has gone down.  If your shares are well diversified then you will be fine.

We need to remember the share market is for the long-term, not for a six week period so we need to be adopting a long-term mindset when it comes to our shares.

Financial stress & anxiety on women –

Hands Off Your Superannuation

The government is allowing you up to $10,000 from your superfund this financial year and again next financial year.

Avoid doing it unless you’re completely out of options.

Why?

Taking $10,000 out of super in your 30s equates to you having roughly $46,000 less in your super when you retire.

That’s almost 5x the amount you took out and the equivalent of 1 years retirement income.

$10,000 now could be $100,000 by the time you retire.

This is a last resort, but is of course necessary if you require a lifeline. If you do take this option, try to replenish these funds as quickly as possible.  So that your money can continue to build compound interest and serve you well by the time you retire.

PLEASE REMEMBER – If you need extra help during this time, we encourage you to get in touch with the National Debt Helpline on 1800 007 007.

Reference:

https://www.shesonthemoney.com.au/blog/what-does-australias-recession-mean-for-you

Women eligible for Government Support during financial stress & anxiety

Unless you’ve been living off the grid.  You’ll know that the government has been pulling no punches when it comes to trying to cushion the impact of COVID-19.

From additional social security payments, to stimulus packages and wage subsidies it’s all there.

To see if you’re entitled to financial support check out: https://treasury.gov.au/coronavirus/households

Ask for help

If you are struggling to make ends meet right now, don’t keep it to yourself.

There’s help out there. There are services that will help you with paying your bills, food, housing as well as emotional support.

If you’re not sure where to start, start by calling the National Debt Helpline on 1800 007 007.

Reference:

Ways to avoid financial stress and anxiety during COVID-19