Personal Financial Meltdown
What do I do NOW?
Personal finances are in meltdown. Investments are shattered, income cratered, and jobs at risk. Is the coronavirus lockdown and financial market turmoil causing you nightmares? With this financial meltdown, ask yourself “What do I Do NOW?”
Can you visit a financial adviser who may be locked down and is frantically busy with other clients? How can you immediately reassess your financial choices and reset your financial plans?
It is better to have a well thought out plan of action rather than fall into despair or make a hasty action in panic.
The first step is to work out where you are today, and then look at what is likely to happen to your finances if the markets continue to fall over coming months or even years.
How do you make the best choices for this current financial meltdown? Can you collaborate with your adviser or are you “on your own”?
The steps to take
If you are a DIY investor, there are three steps you can follow.
Look at where your finances stand today.
You need to think like an accountant.
You need to write down your assets, (home and investments), all your debts and how much you are repaying each month, your other essential expenses (electricity etc.) and your discretionary spending.
You need to look at your income, and any investment returns. You need to look at where you stand right now following the market falls of recent weeks.
This is what an accountant would call a Balance Sheet.
Look at the WHAT IF’s… or even WORSE CASE scenarios
- What might happen to me if the share market falls another 30%?
- What might happen to me if it is even worse, say an 80% fall over many years?
- What might happen to me if I or my partner loses our job?
- What might happen if we cannot refinance our mortgage or loans?
- What might happen if our home falls dramatically in value and if we are forced to sell?
Make the best choices and plan to readjust if circumstances change
As an accountant or financial adviser would say “you need a cash flow analysis”.
Doing all this sounds much too complicated and impossible for a non-professional.
Not any more!
Financial Mappers will help you plan during this financial meltdown
Financial Mappers for DIY investors will give you multiple reports and projections of your current financial position as soon as you enter all your information. It then does all your cash flow analysis.
You can instantly assess where everything in your finances is heading.
Financial Mappers allows you to model any ‘WHAT IF’ scenario and generate new reports anytime you wish.
Whenever you look at any single alteration an entire plan will change with a single click.
Your choice of actions is always going to be a combination of earning more, spending less, borrowing more to survive, or selling assets.
Financial Mappers can allow you to assess like a professional.
Even better, if your financial adviser uses Financial Mappers Pro you can share your plans with him online for expert fine tuning.
Find out how….
David Phillips – Serial Investor
Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.