5 Tips to Get Money Wise during the Covid-19 Crisis

Optimising your savings and investments.

With the pandemic raging through the world like a tornado destroying everything in its path, it’s no surprise that the global economy has been thrust into an abyss. Jobs have been lost, businesses are on the brink and the markets are very unsteady.  

In such situations, money matters require rethinking and careful planning, often with the help of a financial expert who can advise you on creating a safety net and optimising your savings and investments.

Without panicking, here’s what you should consider according to your financial priorities and lifestyle.

‍Tip 1: Make Saving Sacred

Build up an emergency fund by setting aside a fixed amount of money from your earnings every month or by cutting back on any unnecessary expenses. This stash of money will be at your disposal for withdrawal whenever you need it. A Savings Account with a good interest rate and high yields will give you more for your money.

Tip 2: Revamp your Insurance

The financial implications if you are not adequately covered by Health and Life Insurance during such times can be very tough. Reassess your Health Insurance to see if your provider is now accepting delayed payments to ease the huge financial impact and whether the cost of a Coronavirus test and subsequent treatment (if required) is covered in your plan.  

If you have loved ones that depend on you, get the help of an expert to make sure your Life Insurance adequately secures their future with an easier transition in an unfortunate situation as death.

Tip 3: Prioritise the 3rd Pension Pillar

Now is the right time to plan and invest into the 3rd Pillar of the Swiss Pension system, wherein you have to contribute voluntarily towards building up private pension while saving on taxes and insuring against risks like death and occupational disability. Stocks are at an all-time low and immense dividends are guaranteed! If you were thinking of planning your 3rd pillar or you already have it invested in the bank without profit, don’t wait any longer.

Tip 4: Track your Payments

As companies, businesses and services are going through a lot of changes, make sure you check your subscriptions, gym memberships, loyalty points and travel bookings for any potential refunds and fee waivers. It is also important not to fall prey to scams which offer too-good-to-be-true deals to exploit you financially. Read the fine print and double-check everything until you’re sure.

Tip 5: Seek Financial Assistance

Switzerland is offering stimulus packages to soften the financial impact of the Coronavirus. Find out what benefits you are entitled to according to your situation. Self-employed people can get access to the employment benefit scheme, the unemployed will receive 80% percent of their previous salary and those with children get an additional supplement.

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Small and medium businesses can avail loans to prevent bankruptcy; loans of less than CHF500,000 will be completely underwritten and loans of over CHF500,000 will be 85% guaranteed by the government.

If you have any questions or concerns on investments, pension, insurance or mortgage during this crisis, call us on +41 76 392 48 52  for a free consultation.