Full article below written by Helen Baker and shared in MoneyMag April 2, 2020.
One addition we can add to the well written article below is an offer that we can share with you.
A FREE account to our ‘Wealth Portal’
Our ‘Full Wealth Portal’ is shown in this video below.
If you want a free account, we need your name, email address and phone number in our contact box at the bottom of the page.
That way it works on your phone, tablet and computer.
Full Article Here:
We are hardwired for security. Right now, with the COVID-19 crisis changing life as we know it daily, it’s hard to feel secure.
Even more so if you’re one of the many who has suddenly found yourself out of work due to forced closures. How on earth do you stay afloat – financially and mentally?
I’m a financial adviser, not a psychologist, the years in this business have shown me that mindset is critical and that we are our best asset: without health, we have no wealth.
First up, remember that this situation is not forever. It too will pass.
Adopt a ‘C’ mindset
We need clarity, control, certainty and confidence. With a better understanding of what our ‘now’ and ‘future’ look like, we gain certainty—and with certainty comes confidence.
We can achieve, we can tackle and overcome difficult situations. We can do whatever we believe in.
Shore up the foundations
Financial security involves more than a bank balance. Your financial foundations revolve around five inter-related areas: spending and investment plan, emergency fund, insurance, superannuation and estate planning. Right now, addressing cash management aspects are critical.
The reality is we have to spend some money to live. Whether work has dried up significantly or stopped altogether, you need to look at what can provide income and how to reduce costs of living to preserve what you have.
Get financial assistance
The Australian government has put in some extraordinary support payments to help those suddenly jobless or work-affected due to the coronavirus situation. Put pride aside and accept help if you’re eligible.
While some businesses and industries are shut down, others – such as healthcare, supermarkets, logistics, and telecommunications – are hiring casuals.
I’ve been a big fan of superannuation as the forced savings we need for our future. That nest egg has always been available in dire circumstances – when in severe financial hardship, or due to a terminal medical condition for example.
The government is allowing sole traders whose business has been hit, along with jobseekers, early access to superannuation of up to $10,000 this financial year, and a further $10,000 in 2020-2021, tax-free. It may be the lifeline you need now.
Reduce your debt
Try to get rid of existing debt while you can. Pay down or consolidate debt as soon as possible, particularly on credit cards as they typically incur the highest interest rates.
While banks are letting homeowners impacted by the coronavirus crisis defer mortgage repayments for up to six months, providing some breathing space, there’s been no firm directive for landlords but you can ask for leniency. Rental assistance is also available through Centrelink.
Track your spending
If you ordinarily have little to no money left over after each pay, track your spending over a month and analyse where the money is going and where non-essential spending cuts can be made.
To do this, separate your spending into bills (housing, transportation, food, utilities and insurance), debt payments, entertainment subscriptions, and personal spending. Make use of online budgeting tools or track your spending on paper.
Fix the leaks
Shut down memberships and subscriptions to services you don’t use. They may seem small fry – just a few dollars a week each – but when you have a lot of them and you don’t use them for months, they add up.
Insurance, I stress, is not in the same category as these unused subscriptions. It can be tempting to let these policies go but I suggest unwise.
Look after yourself
When we’re hit with a whammy beyond our control, it can feel like the end of the world. It isn’t. Believe me. This is a time to look after yourself by getting good sleep, eating well, and exercising. Take time to breathe deep, to slow down: it’s good for you!
Pick up that craft UFO (unfinished object) you’ve hidden in the cupboard or that book you left on the shelf. Study something new online, whether for fun or to develop your professional skills. And pick up the phone to a friend every day.
It’s often not until major life events occur or something goes wrong that we get the wake-up call and realise a financial back-up plan is needed. If you’ve been living for the now until now, it’s time to chart your course for the future.
Article Written By Helen Baker April 2, 2020
Get In Touch
If you prefer to send an email question/query through the best address is email@example.com or simply fill out your name, email address and a short message including your phone number will get back to quickly.
facebooklinkedininstagramfacebookI think we can all agree that it has been a crazy year since the last budget in October 2020. Here’s some highlights from the 11th May 2021 Federal Budget. The general theme of the budget is that it is looking a lot more promising...
facebooklinkedininstagramfacebookTempted to sell because prices are high? First check your timing, then the loan and what you’re going to do with the proceeds. Well written piece by Ben Smythe in the Australian Financial Review. With the residential property market...
Great article 'The Damaging Money Myths That Are Holding You Back" written by Phil Slade in the MoneyMag. I have two teenage sons, both of whom have their driver's licence and new jobs, which are launching them into a new phase of independence and curiosity about the...