COVID19 has caused a massive amount of economic carnage abroad, we would be naive to think this couldn’t be the case down under.
If you’ve unfortunately been a casualty and have lost a job or faced reduced hours, then there are some practical things you can do right now to minimise the damage.
With less money coming in, the simple fact of the matter is you will need to curb your spending.
As depressing as this may sound, you should see this as a positive. When we are faced with the need to reduce our spending, it forces us to look at what we value the most in our lives.
If you have not done a budget, or you have one, but haven’t paid much attention, now is the time.
5 important areas you need to consider are the following:
Money In – Income, wages, salary, what money is coming in, is there any part-time work you can do, is there working for families or spouse’s income you can rely on, what about Work and Income support ?
Money Out – What do you spend money on each week, fortnight or month? If tend to get paid on a specific pay cycle, try breaking your spending down to match your pay, followed by what that might look like over a week. For example, if you get paid fortnightly, multiply this over a year, then break it down to each week.
Surplus – This is the sweet spot you have left over after paying your bills. Surplus is what we use to save, or pay down debt. If you find you are constantly in the red each week with nothing left over, then we need to address your spending, you simply can not spend more than you earn. If you’re not sure, book an appointment with me and I’ll help you through this.
Debt – It’s super important to come to terms with what you owe. Perhaps you’ve got a slightly higher credit card balance than you would prefer, maybe you brought a car on finance recently.
Add up the total so you know what to pay back.
What you can sell – Take a look around the house, you’ll be surprised by how much you may be able to get for items you no longer use. Old sports equipment is a perfect place to start, use the proceeds to paying down debt or setup cash reserves for a rainy day.
There will be some tough calls to make, and you may need to sell things you would have loved to have kept, you may also have cut back on a few items as part of your weekly spend. Don’t despair, this as an opportunity to get rid of what you don’t need, and to focus on what’s most important to you.
Think about that skills & talents you have, everyone has something, how could you make an extra buck or two selling a skill, product or service ? You’ll have some extra time while exploring other income opportunities, so get your hustle on.
If you are needing help with a budget, or perhaps you need some coaching to get you started. Book a time with me today.