2020 was an intense, emotional year, and with uncertainty running high, many Australians experienced financial security uncertainty.

The good, and perhaps surprising, news is that we’ve actually seen people become more conscious with their finances because of the pandemic. In fact, Australian Bureau of Statistics data shows that people are saving more of their money than before the pandemic.

If you want to seize the moment and start 2021 with your financial house in order, here are 4 suggested actions to get you there:

1. Take a step forward

Lying awake at night or burying your head in the sand altogether isn’t the best of strategies. Instead, try the simple yet empowering first step of taking financial inventory.

Assess your income, assets, investments, debts, credit score, and any other key finances to get a clear picture of where you stand. From there, develop a detailed budget to keep things on track.

2. Plan it out

Whether it’s for your first car, saving a deposit for your home, or paying for a wedding, we all know that advanced planning increases chance of success and typically leads to better outcomes.

Building a plan from the ground up can seem daunting, but it is one of the best ways to alleviate the questions and anxiety keeping you up at night. Just make sure that you start by clearly articulating your goals. The next steps will flow from there.

You can try using reputable low-cost (if not free) financial planning tools and apps to help you start your savings plan.

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3. Build a ‘if shite hits the fan’ buffer

If 2020 has taught us anything, it’s that we can’t predict everything life will throw our way. That’s why having a solid emergency fund to help you manage through any potential financial setback in the future is so critical.

Emergency savings can help reduce the chances of missing your mortgage repayment or rent or even a meal during an already challenging time.

It’s recommended that you three to six months of expenses. However, don’t get overwhelmed if you don’t have the funds available right now. Saving up over time will be more manageable (and less stress-inducing) than you think if you are consistent.

Consider automating your savings by setting up small, achievable transfers matching your pay cycle and watch your emergency fund grow at a steady pace.

4. Set risk assurance in place

Insurance might feel like an unnecessary cost, especially if you are aiming to minimise your monthly expenses. But having that extra cushion if you need it can be meaningful to your long-term financial success.

During an already uncertain time, insurance can add a layer of security and soften the blow of an unforeseen property damage, theft or even personal injury accident.

Having appropriate insurance cover in place will provide you with assurance that you will be financially protected in one of the insured events occurs.

Keep it up

When so much seems beyond your control, it’s crucial to focus on what you can do to get that much-needed peace of mind. Small steps add up to big results, and making a thoughtful financial plan goes a long way.

The end of the year is a good reminder that our situations change with time, so remember to come back to your fundamentals regularly, could be as much as twice a year, if not at least once a year and adjust accordingly so that you stay true to your goals.

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This article via BI does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.