Make sure your financial plan is pandemic-proof - Destiny Connect
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Make sure your financial plan is pandemic-proof

It’s August, the month we celebrate women and focus on our unique challenges and roles. This year those challenges have been compounded by the chaos caused by Covid, highlighting the need for a solid pandemic-proof financial plan, says Monica Moodley, Legal Manager at Old Mutual Personal Finance.

“Proper financial planning is key to managing an uncertain future. With women outliving men and generally landing the role of being the primary caretaker of the family, financial planning for women has taken on a new urgency.”

Keep protection intact

With many incomes reduced and retrenchments on the rise, it is important to preserve benefits such as life and disability cover and retirement savings. Avoid cashing in policies.

Reduce debt and invest for growth

The way we work has changed dramatically over the last few months. The advantage of lockdown and working from home is that you may be saving on transport and entertainment. Use this money to reduce your debts and to grow your savings and investments. Any surplus cash you have has the potential to generate returns and create wealth if invested wisely.

“But do make sure you understand the risks and benefits of all your options. Low-priced stocks, for example, offer the possibility of capital growth, but there are no guarantees,” says Moodley.

Save for emergencies and big goals

Review your budget, cut back on unnecessary expenses and channel some of the savings into an emergency fund and the rest into a fund or investment for your longer term goals, such as your child’s tertiary education and a comfortable retirement.

Draw up a proper will

Tax efficient estate planning and drawing up a proper will are essential to ensure that if anything happens to you, your loved ones will be financially taken care of and your assets will be distributed according to your wishes.

Speak to a financial adviser

“It is always important to hope for the best, yet plan for the worst,” says Moodley. “An accredited financial adviser can assist you with a tailor-made financial plan that will help you ensure a secure financial future for you and your family.”

Click here to find a financial adviser or call 0860 60 60 60.

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