3 Ways To Take Back Control of Your Finances During COVID-19

We know that the world has gone a little mad lately. We can’t find a cure for COVID-19 unfortunately, but we can help keep you on track financially. We’ve got 3 tips to help you feel more secure financially and even emerge out the other side with a head start. These 3 tips will help you take back control in uncertain times. 

Budget

Knowing your necessary expenses and how much you have to spend is crucial in helping you feel in control of your finances.

Consolidate

Once you have your budget you can start looking at areas where you can consolidate debt or reduce repayments.

Get funds

With your budget and financial goals and requirements in mind, you can start looking at ways to generate funds to keep you going.

Budget

Now don’t freak out – you are going to have to put some work into understanding your financial position. When times are uncertain it’s important to know what the minimum expenses are that you must cover.

Write down all your necessary expenses and the dollar figure that you need to cover these. These are the expenses that you don’t want to compromise on. If you don’t meet your minimum repayment obligations on your liabilities, for example, you could end up in trouble with debt collectors and your credit file will suffer as a result. 

You also want to include a dollar figure for your groceries. But remember – whilst everyone needs to eat, not everyone needs take away coffee or organic produce. Consider areas of your grocery shop that you could eliminate or purchase a cheaper equivalent. 

Once you understand your minimum expenses, you know exactly how much money you need each week. Most people are surprised when they do this exercise – you often need less money to survive than you think. 

Bonus – some isolation budget-saving tips:

Consolidate

Once you have a good idea of your necessary expenses you could look at ways to consolidate some of your expenses or negotiate with creditors on your repayments. 

If you have multiple loans or credit cards, debt consolidation could be an option. This is where a creditor pays out the balance of your existing debts and bundles them into one debt that you repay. 

The advantage of debt consolidation is that you have just one repayment to make, one set of fees to pay, and one set interest rate. Usually the interest rate is lower than your current interest rate. The purpose of debt consolidation is to put you in a better financial position. 

Interested in debt consolidation? Enquire now and get a callback from our team to discuss.

If you’ve done your budget and you’ve panicked because you feel like you can’t meet your current minimum expenses, then your best option is to approach your individual creditors. If you have a mortgage, vehicle finance, credit card, or personal loan then your credit provider must have financial hardship policies in place. 

Call your creditors and explain that you’re struggling financially due to COVID-19, and they will walk you through your options. These could include repayment holidays (where you don’t pay anything for a period of time) or reduced repayments for a set period of time.

The worst thing you can do is ignore the issue and stop paying your loans or liabilities. This will only get you into trouble with debt collectors and end up on your credit file. Once poor repayment history or a default is present on your credit file, it’s much harder to negotiate and resolve. You’re better off being proactive now.

 

Get Funds

So you’ve got a good understanding of your minimum expenses and where you might be able to consolidate debt or reduce repayments to make life easier. Now we can look at ways to generate more income or maybe get some funds to see you through. 

One of the most obvious solutions is to borrow money. This doesn’t suit everyone, of course, but if you’re interested in exploring your options then fill out your details so our team can get in touch. 

If you’ve recently had a drop in income as a result of COVID-19, then make sure you get in touch with Centrelink to ask about the benefits that are available to you. Here is a helpful government website that outlines where you can go to get help. 

Also make sure you approach your employer to discuss your options with them. There are various stimulus packages available to employers in the next few months, including JobKeeper payments of $1,500 a fortnight to be paid directly to employees. Make sure your employer is aware of this option and has registered their interest. 

Finally, it might be time to get creative. What can you do to generate income from your house?

Bonus: Get Prepped!

Spend your time in isolation taking control of your finances so that you’re ahead of the game when we’re all released!

Our unique Banking Rehab will address everything we’ve talked about and then some! Learn what you have to do take control of your banking to achieve your financial goals, apply and get approved for finance, and start modelling good financial habits for your children and family. 

Banking Rehab will be released shortly – sign up now while it’s still FREE. 

Money Bro Pty Ltd (CAR 509959) is an authorised credit representative of Aus Loans Pty Ltd, credit licence 383999.

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