Three ways to keep finances healthy after lockdown
1. Prioritise emergency savings
Before you start thinking about investing, it’s important to have a sum of money that can be accessed quickly, to cover a sudden expense or unexpected dip in earnings.
Managing savings accounts can be a first step to getting your head around investment risk – something many women tell me they struggle with.
A female colleague recently told me having an emergency fund helps her feel safe.
“I know that if something really goes wrong, at least I’ve got my emergency savings in cash,” she said.
Based on work around the psychology of investment decision making, the following tricks can be used for starting and growing an emergency fund.
First, make sure the money is a completely separate account, labelling it an ’emergency fund’ or similar.
Our brains like having some order to simplify decision making, so identifying what the money is to be used for will help you…