In a little over 2 months, Coronavirus has managed to transform the way we live, work, exercise, educate and entertain. It is fair to say, that Coronavirus has arguably caused the most significant and instantaneous changes to the Australian way of life in the history of our country.
Next week as the first Jobkeeper and early superannuation payments arrive, households doing it tough will be celebrating some welcome relief. Particularly in communities that were hit by the devastating bush fires of only 4 months ago.
During this time many households will be noticing a significant drop off in their incomes and unfortunately, with many families not having significant savings it is potentially as important as it ever has been to have a solid understanding of your family’s finances.
Here is a check list for families on how to get through this crisis:
1. Have an honest discussion as to what the needs of your family are. Keep it simple, think keeping a roof over your head, food on the table and the lights on.
2. Determine what are your wants? These are things that are nice to have but are certainly not a necessity. For those with young children, ice cream might be a necessity in order to keep the kids behaved during isolation, however there is a significant difference between buying a tub of Ben & Jerry’s or a tub of local and more affordable brand just as Paul’s.
3. When it comes to necessities like groceries, aim to only shop no more than once a week. This will not only help protect you and your family from potential exposure to Coronavirus but will also help keep more money in your back pocket.
4. Experiment in the kitchen. Not only is it significantly cheaper to eat at home, but it can be a great indoor activity to keep children engaged while inside. If there ever was a time to learn a couple of new dinner party hits, now is the time.
5. For those with mortgages, loans or credit card debt, speak to your respective providers of these services. Our banks and lenders have been actively encouraged by their regulators to support households during this time. While deferring payments may result in additional interest capitalising on your loan, it will enable you to survive during these trying times
6. Where possible, look to cancel unnecessary subscription services. While it may be tempting to have Netflix, Stan, Foxtel and Disney Plus subscriptions, it could be a prudent decision to remove the services you are not using.
7. Establish a firm budget and stick to it religiously. This is the cornerstone of financial planning and will enable you to control your financial destiny.
The important thing to remember over this time is that like all things, this too will pass. If you are looking for further assistance, please reach out we are here to help.
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