The effects of the Coronavirus has changed most of our lives in an instant and many of us will be looking seriously hard at our finances for the very first time. We make decisions about our money every day and yet most find it daunting, stressful and overwhelming to contemplate.
Creating even a basic budget is a good way to manage your money. It provides some guidelines for you to stay on track and lets you plan for things you want and navigate through problems when the unexpected happens.
Where do I start? If you seek help from a financial counsellor they will almost always look at your basic income and expenditure, what you are spending compared to what you are earning. If the money coming in, is less than the money going out it's pretty obvious that there is a problem and where uncontrolled debt may become an even bigger issue. The problems associated with the Coronavirus has meant that many people will be in this situation for quite a while and a lot of businesses have hardship departments to help you deal with paying your debts, particularly if your income has been affected by the virus.
How much am I really spending? Most people when asked could not tell you what they really spend on food and other essentials let alone the money they spend on the things they could do without. We all now know exactly what we spend on toilet paper and how much is too much to have in the cupboard because of the recent focusing of our attention. The first thing in preparing a good budget is to know what you are spending. Tracking your spending will help you create your budget.
The Money Smart website has a lot of tools and advice that can help you to track your spending and create your budget. If you do your banking online your bank often provides categories for your expenses and this can help you track spending in listed areas quickly.
It doesn't take a global pandemic to throw people into hardship. Many people fall into hardship with just one change in their life. You or a partner becoming ill, losing a job or reduced work hours. The Affordable Helpline staff speak to people everyday who have fallen into unexpected debt because of such scenarios. What you can afford can change overnight and if you don't respond quickly it can lead to long term debt and ongoing financial problems. Having a budget means you can respond quickly to your changing financial situation, maintain the things you need and plan for the things you want.
Recently there has been a lot of hype around budget management companies and we see the marketing for these companies ramped up over this period in the media. These companies charge pretty large fees just to manage your money. Money that you could be using to improve your situation if you manage your own budget.
Financial Counselling is free, independent and confidential. Its done by registered professionals who have undergone training. It's free, not just for the initial consultation but all the time and is there for anyone experiencing financial difficulties.
Watch the video, "Income and Expenditure" by Financial Counsellor Karen from The Salvation Army and check out the Money Smart website for recommended online tools to help you track your spending and create your budget. You can find a financial counsellor near you, by calling the National Debt Helpline 1800 007 007 or the Affordable SA Helpline on 1800 025 539.
The Affordable SA Helpline is run and staffed by SA locals. They know South Australia and the problems we face together in this state as well as the help available to South Australians.
If you are feeling overwhelmed by cost of living issues help is always available at your fingertips via the Affordable SA App (free to download) and online at affordablesa.com.au or a call to the Helpline 1800 025 539 locally staffed from 9.30 till 8pm Monday to Thursday and 9.30am to 4.30pm Friday. You can leave us a message after hours and we’ll get back to you, e-mail us at the website or drop us a message on facebook.
For those seeking self help please use the “I need help with… “ tool, available on the Affordable SA App and website. Download the App for free from Google or iTunes.
by Graeme