For those of us who like to plan, 2020 has presented us with more than a few challenges - drought, bush fires and now the Coronavirus. When you were making your New Year’s Resolutions, be they financial or personal we bet you weren’t counting on a health pandemic! Often crises are specific to individuals but this one is affecting every single person on the planet which has got us thinking. How do we best manage the situation so that we can remain empowered, positive and strong financially, emotionally and physically.
Here are our top five tips:
The government has released a raft of stimulus packages to support those hit hard by the downturn in business. If you have been stood down, made redundant or your business has seen 30% or more reduction in turnover there are a range of options available. These include the JobKeeper payment ($1500 per fortnight) and the Covid-19 supplement ($550 per fortnight). There are also two separate $750 payments to social security, veteran and other income support recipients and eligible card holders, and you may be able to access temporary early release of superannuation. There are also initiatives designed to boost cash flow to employers, support apprentices and trainees, increase the instant asset write off, back business investment and provide temporary relief if your business is financially distressed. If you need access to working capital, the Coronavirus SME guarantee scheme is also providing a guarantee of 50% to SME lenders for unsecured loans. For detailed information on your eligibility for any of these packages please click here.
This is a great opportunity to take stock of your expenses and build some better habits. With less disposable cash at hand you will probably need to rethink your needs versus wants. At the heart of every savings plan is a budget. If you are spending more than you earn ask yourself, what could you cut out. Maybe it’s a good time to ditch the credit card, or at the very least pay it in full and on time to avoid interest charges and late-payment fees.
With most restaurants and cafes now closed you are probably already noticing some savings there. Did you know that Australians spend 34% of their food budget eating out? Saying that, we do look forward to the day when we can indulge again! If you are looking for an easy to follow budget tool, try ours.
Don’t forget to get in touch with your bank to discuss the option of deferring your loan repayments for a period of time. Alternatively, it is definitely worth investigating your options for a better interest rate on your home loan as significant savings can be made by doing this.
Here's what that major banks are offering.
If you are out of work or working less this crisis has presented us with the gift of time. How we use that time is up to us and it’s unlikely that we will be presented with a window like this again, so seize the day. If you join the Queensland State Library, which is free you can access their online learning portal with courses covering topics such as photography, web development, marketing, IT and business management. TAFE Queensland is also offering a range of free financial resilience webinars.
Whilst it’s tempting to slip into sleeping in and letting the days pass by, keeping a sense of routine will be better for your self-esteem and general well-being. Think about how you can innovate and adapt to the new normal and use it as a force for good. Distillers are making hand sanitiser and manufacturers are building respirators and face shields. Human beings are by nature very adaptable. Do yourself a favour and watch this Ted Talk on ‘How to be your best self in times of crisis.’
More than ever it is vital that we look after our physical and mental well-being. Keep up your exercise regime, eat well and stay in touch with your loved ones – be it at a distance. Many fitness instructors are running classes by Zoom at the moment. Alternatively you could try Anytime Fitness or 28 by Sam Wood. Strava is another great app to stay engaged with others and retain your competitive edge. It logs your activities for all to see and comment (like Facebook for fitness).
If you are feeling stressed or anxious there are some great apps around as well as organisations providing plenty of assistance and strategies. Headspace is a great resource with lots of tips and support available. If you have been thinking about learning to meditate, now is as good a time as any. The Headspace and Smiling Mind apps are both great and highly accessible for both adults and children.
Take care everyone.
