April 22, 2020

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12 Tips to Help You Get Ahead Financially.

22/04/20202   Steve Sell

The old saying “money won’t make you happy” maybe true, the lack of money can certainly make you feel stressed and unhappy. Try our 12 Tips to Help.

Here are 12 Tips to Help You Through These Tough Times.

We are now going through unprecedented times that none of us ever planned for and making the right financial decisions in this environment can feel overwhelming and distressing. We offer thease 12 tips to help you through this period.

COVID-19 is a real threat and is making a lot of us uneasy and uncertain not only of the future but the reality of our financial situation.

It can be confronting to stop and assess exactly what your financial position is.

Now is the time to be proactive and realistic about planning for your short term and future financial health. We have provided 12 tips to help as a checklist and a starting point.

The big thing is to be honest to yourself and your partner about exactly what your financial position is.

1. Your spending. Reduce Your out goings.

Reduce what you spend. Cut out any unneeded expenditure.

Ask yourself, does the dog really need that pretty pink collar? Do I really need to get Uber Eats tonight?

Look at what you spend on frivolous or unneeded items.

You need to change your spending patterns that have often become habits.

Reducing non-essential expenses is a great way to save money.

2. Check Your Statements.

Check your credit card and bank statements for direct debits, subscriptions and monthly payments that you may have forgotten about or have just been too lazy to cancel.

This is important at any time but certainly needed during these times of uncertain employment and reduced income.

Check out cheaper options or cancel things that you may have overlap or can do without.

A good example is having Netflix, Stan, Foxtel, and Amazon. This list could easily be trimmed without impacting your lifestyle

3. Check YOUR CURRENT and Future Income Position. 

Are your wages going to be reduced? Do you have to go to Centrelink for Job Seeker? Is your employer going to reduce your wages?

In times of uncertainty it is important to plan ahead and to know when and where your income may come from and how the impact of a reduced income may affect you.

Be aware of when money comes into your account and when it goes out.

This is especially important if you are having to deal with a reduced income or a total loss of income.

4. A Budget

Write a budget. This applies to everyone no matter what your income is.

This will give you a real insight into what you spend and where you spend it.

The government website www.moneysmart.gov.au has some great resources to help you to plan a budget.

5. Communicate with Lenders and Landlords.

If you cannot pay loans, Rent, Your mortgage or other expenses on time let the finance company or supplier know and they may agree to take a reduced payment or offer some form of relief and customer support during this time.

Offer your landlord a reduced amount in line with your reduced income. Do not offer nothing. Landlords have bills and expenses to pay and may have lost their jobs or have had a business close.

6. If you are in a position to pay down debt make IT PRIORITY. 

If you are able to pay down debt this will reduce your monthly outgoings,

One of the quickest ways to reduce debt is by paying more than the minimum requirements.

If you have been made redundant or had a windfall it is a good idea to pay down or reduce debt entirely whenever you are able to.

This will result in less monthly payments and bills to worry about.

7. Have a Resrve fund.

an Emergency or reserve fund can give you peace of mind.

If you can It is a good plan to have an emergency or rainy-day fund.

The times that we are experiencing certainly qualify, the funds are for unforeseen circumstances or unexpected expenses.

8. TAX PLANNING.

Are you due for a refund?

If you have a tax bill it can often feel overwhelming.

Get in early and arrange a payment arrangement.

Do not wait until the tax department starts chasing you.

Prepare your expenses and have a tax professional look at what you are entitled to claim.

Being organised and keeping track of your receipts for expenses will be useful for when you prepare your tax return.

Use a tax professional like and accountant who can help you maximise your deductions and entitlements.

9. Get a Credit report and YOUR CREDIT SCORE. 

You can get a free credit report and credit score from www.freecreditreport.com.au This is quicker than applying directly to the credit reporting bureaus.

It is supplied in a user-friendly format.

By knowing what information is contained in your credit report and what your credit score is will help you to know your credit worthiness when you want or need to borrow money.

10. Getting a Loan in Uncertain Times.

If you are still working and have a secure job it may make sense to consolidate existing loans so that you have only one repayment.

You may be able to take advantage of an item that has been severely reduced in price and can borrow money to support the purchase.

Loans 123 can help with asset purchases as well as debt consolidation. www.loans123.com.au

https://www.wacars.com.au/2020/02/28/10-tips-get-car-finance-pre-approved/

11. Goal Setting

You may be stressed about your financial situation now. You need to think that this is temporary situation.

The Covid virus pass and within months things will start to improve.

The things you do now will make a difference now and in the future.

Think Proactively.

Start thinking proactively about your finances and begin setting some realistic goals and actions. Both short term and longer term.

We hope that you can see some hope and light at the end of what may be a dark tunnel at the present time.

The unknown and uncertain outcomes can be a worry.

Trying to manage your finances will be challenging in the short term. Getting control of your finances and having a plan may help to alleviate some of the stress.

12. Centrelink Payments.

The Government through Centrelink have provided extra income support. Combine this information with the 12 tips to help you.

There are extra income and household support payments for people affected by COVID-19:

• a temporary fortnightly $550 coronavirus supplement from 27 April 2020 if you are getting an eligible payment
• expanded eligibility for some payments to make them easier to claim
• a crisis payment if you need to self-isolate, are in severe financial hardship and you can get an income support payment
• two automatic $750 Economic Support Payments
• Source: Moneysmart.gov.au

https://moneysmart.gov.au/covid-19/living-on-a-reduced-income