3 Ways to get your finances in post-lockdown shape
It’s safe to say none of us expected 2020 to rip the rug from under us quite as dramatically as it’s done so far. The impact of the COVID-19 pandemic and the resultant lockdown protocols put in place by world governments has had an immense impact on the global economy.
According to the World Bank, it’s likely that global GDP for 2020 will contract by at least 5.2%, leading to the deepest global recession in decades. In the US alone, 20 million+ people have lost their jobs; locally it is estimated that approximately three million people lost their jobs over the lockdown period. This represents an 18% decline in employment.
Those are some seriously worrying stats right there. So, what can the average South African do to get their finances in post-lockdown shape? In short – take a breath, take a beat, and take stock.
In uncertain times like these, the absolute best thing you can do for your finances (and your overall sanity) is keep your focus field small and control the things that are within your control. If you want to relook your finances, we recommend that you start by:
Going over your new budget
Since lockdown hit in March, most of us have taken measures to curb our spending. Whether this means forgoing regular wardrobe updates, making more food at home, or cutting down on expenses like dog grooming and instead doing it yourself, these little savings do make a difference.
Take some time to sit down with your bank statements and do a proper ‘money in’ VS ‘money out’ breakdown to see where you stand. If you find any more ways to save, implement it immediately.
Getting your 2020 tax return sorted ASAP
The individual income tax return filing dates for 2020 were pushed out to between 1 and 16 September, which means you still have time to get your act together.
TOP TIP: Did you know that you may be eligible to claim tax back if you’ve been working from home during lockdown? Read more here.
Setting goals for the rest of the year
If you’ve been wanting to relook your savings and investment portfolio, now is a great time to do so. Having a long-term plan for your financial future makes all the difference. If you don’t quite know where to start, it always helps to consult with an accredited professional who can provide you with impartial advice.
There you have it – three steps you can take to regain control of your finances in post-lockdown South Africa. Feel free to reach out to a member of the Experity team to find out more about our financial services; we’re here to help you pave the way to a more prosperous future.