A financial crisis is a much nicer way to say you are teetering on the edge of being broke. We have been there and whilst most don’t like to talk money, I believe shared knowledge is power and so having been broke once before and I vowing never to be there are again, we have learnt a few tricks on handling a financial crisis beyond crying recklessly for days. Although that’s also allowed when necessary this is scarey stuff but if I can be so bold to say being broke is not the worse that can happen. Its as simple as that.
Now I got to say we aren’t irresponsible with our money but we have chosen to invest in bricks and mortar, not toys but they too have expenses. We pay everything with cash but investment rentals negatively run require upfront cash and the benefit the doesnt come until July.
Regardless of our financial crisis always follows an unexpected end of a contract with a ‘lull’ in the industry and being casual it can be months between jobs. Then just to make it fun, something always blows up, dries up or requires some sort of major intervention to get it working again. This year it just happens to be something as surreal like a worldwide pandemic that has literally stopped major economies in their tracks.
Needless to say for the past three weeks maybe longer I have been living in a constant state of frugality and I must admit this time with no fear; well only a little. Only a wee bit (when compared to my usual over dramatic we shall all starve speech- which we never would) because we have been here so many times before and this time we aren’t alone, there are literally millions of us in the same boat through no fault of our own. So this wasn’t anyone fault so as we stare possibly four months of beans as rice down the barrel I am as cool as a cucumber; we are prepared, sort of.
So eight steps to get through a period that will ultimately pass as long as you are sensible about it – oh and please I beg you don’t use credit cards to see you through this period. I beg you. Also if you get nothing out of this post please know you aren’t alone and we are all in the same boat some are better are keeping it together than others.
- Change the way you think about money as a family and do not allow one family member to take on all of the financial stress can bring. Talk regularly where you are financially, talk about your money both when in a crisis and not. Start running your family as a small business. Its the reason big businesses have board room meetings and not talking or blaming each other doesn’t get you anywhere. You are a team. Talk to the kid’s age-appropriately, of course, were you are in this situation and what can they do to help- especially if means cutting out a few of their luxuries.
Also, try and see this as a challenge rather than a crisis anything else easy to say when it’s not your first ‘challenge’. Mind set. - If you can’t make a payment on a utility bill, or mortgage whatever it might be don’t put your head in the sand and try not to pay with credit cards. Instead, contact your service provider and talk about a payment plan. Call your banks and see what you can do. Ask what they can do to help you because ultimately they don’t want to lose your current and future business because even big business know that things will pass. This is especially so for the banks – I called two weeks ago to find out that we were a lot more in front of our mortgage than I thought we were. There are so many options. Also, get on to Mygov to see what you might be eligible for over this period.
- Reign in your expenses seriously where you can. A business will make job cuts we can make other cuts. If you don’t really need to shop for anything other than milk then don’t. If you can go without a hair cut then do it hence why I am cutting my own hair and my boys look like they have walked out of a trailer park.
- Check about any forgotten about subscriptions and cancel them. You will be surprised how much these will add up too. You can do this via your app store settings.
- Find a better deal and change the way you shop. Find out who can save you the most money and give you the best deal; you often have to ask because of business arent your mates. For instance, we were spending a Ludacris amount of money on phone plans with Telstra I swapped to their sister company Belong and saved our selves $50 a month for the same service. Health insurance is another one I hate paying. It is so much money, but so little return. I searched and for us I found NIB to be cheaper saving us $60 a month.
- Change the way you eat; funnily enough, this is the one area most people refuse to reign in on but the food we consume is our biggest cost. Swap your brands out, change your cuts of meat, ditch the takeaway and cut down on the processed food. However in saying that at the moment we are eating more comfort food than ever but we are making our own. Try and shop locally for food that’s in season. Try the reward programs of the bigger stores if you cant get what you need locally. When you do need to make an out of community purchase shop online using the cashback programs and vouchers.
- Sell off unrequired assets. If a business is settling into the red they sell off assets your home is no different. Being proactive makes everything not only feel better but is better because you will have additional cash in the bank and more room to move. Look at using Marketplace, eBay, and gumtree. Please ensure social distancing rules apply.
- When you have made it through because you will plan so that there isn’t a next time and if there is then at least you will know what you need to do and how to do it.
Now I am off to check my bank account for the fiftieth time today you know just incase I wasnt aware of a lotto win.
*** Always seek the advice of a professional..always..the internet, google and me are not considered professionals.**
xDeb
