Australians need to take stock of their own financial situations as coronavirus madness continues

The coronavirus pandemic has caused widespread panic around the world but there are some simple ways you can protect your hip pocket.

• Desperate kindergarten asks parents to send toilet paper
• New panic-buying limits on goods

Coronavirus craziness.

We’ve elbowed each other in the supermarket aisles to get our hands on toilet rolls, we’ve even thrown a few fists.

We’ve cleared the shelves of pasta, rice, hand sanitiser and paper towels and we’ve even rushed out to buy chest-top freezers to stash our frozen supplies.

The panic has undoubtedly set in but it’s times like this where calm is needed, especially when it comes to our household finances.

Here’s five important things to consider to ensure you are in a good financial place.

1) STASH SUPPLIES

Believe it or not I’ve always had a fear of running out of toilet paper.

So much so I’ve always got ample supplies in the cupboard.

And finally this weird fear has paid off in droves.

When everyone was rushing out to the supermarket to stock up, I could sit back, relax and watch the madness from afar.

Many Australians have rushed to supermarkets to stock up on their supplies.

While stashing toilet paper is ridiculous given a majority of it is made down under, having supplies of essentials including medicines at a time like this does make sense.

2) JOB SECURITY

In recent weeks retailers, hoteliers, restaurateurs and tourism operators have been forced to lay off staff.

Job security is so important but for many of us it can be easier said than done.

Casuals and contract workers are most at risk and the first to go when companies cut staff.

Keeping your skills up so you are in a good employment position is worth its weight in gold.

3) TOO MUCH DEBT

Australians have the second-highest household debt levels in the country behind Switzerland.

Many of us have taken have signed up to whopping mortgages and at the same time are carrying too much household debt such as credit cards and personal loans.

But all of this comes to a head at some point.

Many Australians are under financial strain especially since the coronavirus pandemic.

Having debt means you have to keep bringing in a regular income to survive.

So there’s no better time than now to reassess your debts, see if you can consolidate them and ultimately reduce or wipe them.

4) DIVERSIFIED ASSETS

It’s so cliche but it’s absolute truth when it comes to finances – don’t put all your eggs in one basket.

Having your money or assets spread in multiple places is key, especially with the sharemarket volatility in Australia and overseas.

There’s some key places to spread your wealth and it’s most commonly across cash, shares, property and bonds.

This means you can ultimately ride the wave when each asset classes go up and down.

5) EMERGENCY FUND

No matter what happens with the coronavirus fallout, whether it means you lose your job or end up in tougher financial times having an emergency fund is key.

I’ve always been petrified of being jobless so my safety buffer is building up as much cash as I can in my mortgage redraw and offset account in case I end up with no income.

If something goes wrong there’s somewhere to turn.

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@sophieelsworth

Originally published as Australians need to take stock of their own financial situations as coronavirus madness continues