Even prior to COVID-19 (“Coronavirus”) being declared a pandemic, many people were simply living week to week, not really saving anything, occasionally having to “rob Peter to pay Paul” whenever bills or debts were due to be paid. So the latest constraints we are all likely to experience will make things even tougher for many if cash flow problems are not improved now. Even those who are doing okay at the moment are likely to struggle if income is affected.
As well as the health implications, the pandemic has already had a rapidly escalating negative flow-on effect on the FINANCES of governments, businesses and individuals. Not only has the tourism industry been adversely affected - Qantas standing down of flights and staff, but non-essential indoor gatherings of more than 100 people have now been banned by the Federal Government in order to slow down the spread of this pandemic - Gatherings of over 100 banned.
Wages and Business Incomes Impacted
This has already impacted many industries, as there are no longer overseas tourists, and fewer locals are out and about spending money. Restaurants, bars, and tourism destinations are already reducing staff numbers or asking staff to take paid OR unpaid leave, hoping to stay afloat in the long term. Many employees will also therefore soon be feeling the effects. Each of those businesses mentioned above is supplied by other businesses, which will need to look closely at their cash flows as well, due to reduced income.
Major Financial Upheavals
Major upheavals such as COVID-19 happen far more often than you may realise.
The Global Financial Crisis (GFC) was a tough period financially for everyone and caused extreme stress in global financial markets and banking systems between mid-2007 and early 2009.
With the introduction of the Mining Super Profits Tax in 2012, followed by the Minerals Resource Rent Tax and falling iron ore and coal prices, many of our communities in towns and cities heavily reliant on mining suffered, as mine sites significantly reduced employee numbers.
The learning we should all take from this is that we all need to plan our spending NOW in order to be prepared for this coming pandemic and all future major upheavals.
Firstly, we need to get through the COVID-19 pandemic period, and I am here to show people how to do this as easily as possible.
Take Constructive Action - Don’t Wait until Your Income Has Been Reduced
Rather than waiting until your family income has reduced, or even worse – you lose your job, there IS something very constructive you can do NOW to protect your family and your assets, while still being able to pay your bills.
What You Can Do NOW
1. Do a Budget to Get an Idea How Your Finances May Be Affected
As soon as you become aware that there is a possibility that your income may be reduced, or you may become unemployed, the first thing you must do is take a close look at your finances to find out how badly you are going to be affected.
Initially, you can create a budget to at least get an idea of whether you will have a temporary budget problem or a serious budget problem. Be mindful, however, that although a budget will show you that it IS possible to cover all your expenses, it can’t show you HOW to do so.
How many times do we calculate that we should have “x” saved each pay, only to find nothing left by next payday? In addition, a budget only looks at what you have spent in the past and doesn’t take into account all the unexpected expenses that you may potentially be in for in the future. Who knows what may be around the corner?
2. Seriously Consider Having a Forward Forecasting Spending Plan to Know 100% How Your Finances Will Be Affected
A far superior method of managing money better and determining if you will be able to cover all future expenses both expected and unexpected is to enter all your figures into a Spending Plan, which is a future forecasting tool that will show you how much you must have in the bank every single day for the next 12 months to cover expenses, and more importantly, also shows ahead of time each date (and amount) that you are likely to not have enough money to pay all your bills.
A Spending Planner will work with you to identify all the unexpected expenses that may potentially happen in the future and show you how you CAN factor those potential expenses in even if things are tight now.
None of us were taught in school how to successfully manage our money, so it is no wonder we get it wrong at times, or we take on a debt that may already be stretching us money-wise, and which we certainly will not be able to afford if income is reduced during any major upheaval periods such as this.
Having a Spending Planner work closely with you, coaching and educating you for 3 – 6 months on how to plan and control your spending, and how to reduce expenses so you will still be able to save money, will ensure you can safely navigate through this uncertain period and still be able to pay all your bills. Although you may encounter several periods during the Program when you will unexpectedly receive bills you weren’t ready for, we work with you every step of the way and show you how to successfully deal with every one of those bills.
A Spending Planner coach is an invaluable investment that will ensure your financial security for the rest of your life and put you in a MUCH better position in 3- 6 months’ time.
People often come to me with NO money in the bank even if they earn a decent income and several debts in arrears. This is usually because their expenses are far higher than their Income. Although they think they have reduced expenses as much as they can and wonder how they will be able to pay for my fees, as soon as I have their figures entered into the software tool, I immediately show them where, when and how further reductions can always be made, so that their Expenses become LESS than their Income and they usually have savings within a few weeks.
Engaging a Spending Planner Is a Guaranteed Investment in Your Financial Security
I will speak at this point about our coaching fees. I am sure you will be concerned about how you may not even be able to pay your bills during this worrying time, let alone pay for any money coaching. If I determine after learning about your circumstances that I can help you, my fee comes from within the Spending Plan Savings you will achieve. I guarantee that your savings will increase even after our fee is paid.
Ensuring everyone is able to remain financially stable is our top priority. In these testing times, we are mindful that many people will struggle with knowing how to better manage their finances. So to provide everyone with the ability to be able to significantly improve their financial position, our upfront administrative fee is reduced to $95.00 until 31 May 2020. And remember, apart from the $95.00 administrative fee, the rest of our fees will come from within the Spending Plan Savings you WILL achieve.
In the unlikely event that I cannot create a Spending Plan where you can make savings, you will not need to continue with my coaching services, nor pay any ongoing fees. You will, however, have been provided with some great information and learnt valuable savings strategies, and I will be able to point you to caring credit mediation service providers if necessary. However, I am able to solve money problems in 90% of cases and get people rapidly back on track.
All our existing clients have already fireproofed their finances, and are as prepared as they can be for whatever is coming. They know what to do to further cut expenses if necessary, as their Spending Plan has already excluded any superfluous expenses. They can see what their financial future holds for the next 12 months, and can create "what if" scenarios to see where they may encounter problems if their income is reduced, and know where to adjust their spending NOW to avoid any problems.
My clients will attest to how I genuinely care about helping them, and how I have significantly reduced the stress in their lives. They now have far more surplus money and time to spend with their families and are much happier.
Fireproofing Your Finances
Those people who get a Spending Plan in place as soon as possible WILL have more money during this period and WILL recover much faster when this pandemic is over. Thanks to modern technology, we can ‘meet’ online via Zoom video call, so there is no reason not to get your finances sorted now. I can be contacted directly on 0416 189762 to arrange a meeting.
Premier Spending Planners will guide you as safely as possible through this period.
“This Period Too Shall Pass”
Even if you can’t socialise as much in public places, think of this as a positive period in which you can slow your life down a little, spend more quality time with family, reassess where you are in life, and use the extra time wisely to get your financial house in order.
And NO, do NOT get a credit card to help get you through this period – we will show you many other ways to manage your expenses, and that is definitely NOT one of them!
Fireproof Your Finances with a Spending Plan!