Why You Need a COVID-19 Financial Plan

With Jim Farrell, Senior Financial Adviser

Jim Farrell, Senior Financial Adviser

Countries in recession, unemployment rates rising, multiple economic indicators at their all-time lows, increased market volatility– these are just some of the economic impacts we’re seeing as a result of the pandemic.

As we continue to battle the COVID-19 crisis, it is important for everyone, especially those who have had their income stream affected, to keep their finances in check and proactively find ways to navigate to recovery.

Jim Farrell, Senior Financial Adviser at Soundbridge, says, “By creating a financial plan, you’ll be able to find out how long you can continue with the current circumstances, but you’ll also be able to work out how to get your finances back on track and be in a stronger financial position. This process may also reveal things you could’ve done to cushion the impacts of the crisis, which will be valuable knowledge moving forward.”

In this article, we will talk about what a financial plan is and the benefits of having one.

What is a Financial Plan?

“A financial plan is like a roadmap that helps you get to your desired financial position,” says Jim. “This is done by evaluating your current situation, setting short- and long-term goals, and putting a strategic action plan in place to achieve them. This plan also takes into consideration how you can maintain financial stability amidst times of uncertainty.”

An effective financial plan is not just about savings–it encompasses the following:

  • Cashflow
  • Spending patterns
  • Budgeting
  • Investments
  • Tax position
  • Debts
  • Risk management
  • Insurance
  • Retirement planning
  • Estate planning

What are the Benefits of a Financial Plan During a Crisis?

As mentioned earlier, a financial plan is a comprehensive approach to dealing with your finances. This means having one can also aid you in times of economic trouble such as the one brought by the pandemic. While it doesn’t guarantee that you will not be affected in any way, a solid financial plan can reduce the impact on your finances.

Having one will give you peace of mind knowing you have a plan in place to adapt to what’s to come. When evaluating your current financial position and your ability to get through the COVID-19 crisis, you need to consider the following:

Alternative sources of income

  • If your cash flow is positive, negative, or neutral
  • If you need to withdraw a distribution from your investment
  • A strategy for liquidation
  • If your investments reflect your risk appetite and are tax efficient

Riding Out the Storm

“A good plan or strategy makes a huge difference as to how you’ll be able to adapt during tough times,” says Jim. “Aside from putting you in the best position for financial success in the post-pandemic world, it also ensures that you’re prepared for the next crisis or economic downturn, whenever that may be.”

If you’re only starting to think about crafting a financial plan, don’t worry because it’s not too late. We also understand that without a finance background, getting this done right can be a real challenge.

The good news is our team is ready to help you assess your situation and put together a plan that is tailored specifically to your needs. Feel free to drop us a message to learn more about how we can help you not only survive, but thrive, amidst the pandemic.


While every care has been taken in the preparation of this article, Soundbridge Pty Ltd (ABN 40 151 134 146) and AFTA Pty Ltd (ABN 18 624 984 550, AFSL 507423) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts.

The information and any advice provided in this document is general and has been prepared without taking into account your objectives, financial situation or needs, and might not be appropriate to your situation. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things. Past performance is not a reliable indicator of future performance.  AFTA Pty Ltd does not warrant that future forecasts are guaranteed to occur.

The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.

Soundbridge Pty Ltd (ABN 40 151 134 146) is a representative of AFTA Pty Ltd (ABN 18 624 984 550), Australian Financial Services License (507423), Registered office at 166 Quay Street, Rockhampton QLD 4700. Any advice on this website is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.

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