9 June 2020
How to make the most of your money during lockdown
At a time when the Coronavirus outbreak is turning our world upside down, it’s still important to try and find ways to keep your savings plans on track where possible.
Whether you have recently been furloughed, made redundant, or are just keen to be in the best financial shape when the lockdown is lifted, we have some hints and tips to help you navigate your finances over the next few months.
If you’re working from home
If you’re lucky enough to have been able to transition to working from home, while setting up a home office can be an adjustment, it can have financial benefits too. According to new research, £2.1 billion is being saved every week by employees working from home. Not having to buy lunch or commute is saving the average employed worker £44.78 every week and 88% of people said they are currently saving money by not going out to socialise or participate in leisure activities.[1]
So, if you put aside the money you would usually spend on commuting or socialising it can be a simple way to save money without noticing. A Tax Exempt Savings Plan is a good place to start because you can start saving from £25 a month and you can decide how long you want to save for from 10 to 25 years. You can even select the exact date you want to save for so that your funds are ready for a special anniversary, birthday or retirement.
If you or your partner has been furloughed
It is important to remember that you are not the only person feeling the financial and professional impact of coronavirus. The Resolution Foundation predicts that more than nine million workers are expected to be furloughed under the UK government’s job retention scheme, where the Government pays 80% of employees’ wages, up to £2,500 per month.[2]
While this is far from an ideal situation for many people, the Government has announced that the coronavirus job retention scheme will run until October, so for the next few months at least the majority of people should have peace of mind about covering their monthly bills.
You may also be eligible for a mortgage holiday that reduces or delays your mortgage payments until you are in a position where you can pay. You could also receive an interest-free overdraft of up to £500 for up to three months and payment holidays on loans, credit cards, store cards and catalogue accounts. If you think you may need this support then contact your bank or account provider to find out if you can qualify for the additional support.
If you are a member of Foresters Friendly Society
Members of Foresters Friendly Society can apply for a discretionary grant, as part of the membership benefits package available to them, to provide financial support. The Foresters Support Fund is aimed at helping adult members in times of hardship, paying up to £2,000 to help members through difficult times. In 2019 we awarded grants worth £26,432 to members.[3]
Additionally, we can provide financial assistance to children such as those who are bereft of one or both parents; children who have parents that are incapacitated; children who themselves are incapacitated or have special needs and children who are carers. Visit our members’ pages to find out about the benefits we offer.
This blog is intended to provide information, not financial advice, to help you make an informed decision about savings and investments. We do not offer financial advice. You should contact a financial adviser, who may charge a fee, if you want financial advice.
Please
note that tax rules may change in the future and depend on your individual
circumstances. Member benefits are not
regulated by the Financial Conduct Authority or the Prudential Regulation
Authority.
[1] Research published 14th April 2020, http://hrnews.co.uk/british-workers-are-saving-2-1-billion-every-week-they-work-from-home/
[2] https://www.bbc.co.uk/news/business-52209790
[3] https://www.forestersfriendlysociety.co.uk/membership/member-benefits