09 Aug Managing Your Expenses And Reducing Costs
Many Australians are feeling the uncertainty of the current situation and are looking for ways to shore up their financial position, regardless of whether they have been directly affected or not.
Managing your costs and expenses can be an effective way to help you through this time, particularly if your income has been affected.
Make a list
Start by building a clear picture of your income and expenses to help you understand your overall position. For example, make a list of:
- Savings (if any)
- Income (from wages, government benefits, income from investments)
- Lump-sum payments (government payments, redundancy etc)
- Your expenses, including rent or mortgage payments, bills, other loan repayments, health insurance, vehicle, utility and grocery costs, and insurance premiums etc
This will help you understand how long you can sustain your current position and determine the timelines for any actions you need to take.
Look through your list of expenses and consider whether there are any non-essential items that you can live without at least temporarily.
Seek assistance from providers
Speak to providers such as electricity and gas or phone providers. They may have options such as payment plans to help get you through this period.
Expenses you might be able to freeze or defer
Consider what expenses you might be able to freeze or defer, such as your mortgage repayments (please see our Mortgage Options section for more information).
Some income protection insurance providers are also offering a premium freeze, where you can stop premiums for up to 12 months.
Please be aware however that you won’t be able to claim during this time. The possible benefit is you can resume when you are ready and don’t need to reapply.
Be careful what you cut out
It may be tempting to cancel health and other insurance policies to cut expenses now, but doing this may have longer-term implications, and you may not be able to obtain the same level of cover in the future.
If you are considering cancelling any policies that you have put in place with your adviser, please get in touch so we can help you understand any implications.
If this is a topic that you would like to discuss in more detail, please go to www.MasterYourMoneyNow.com.au/getstarted to book in your complimentary 30-minute strategy session.
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Disclaimer: This information is general information only. You should consider the appropriateness of this information with regards to your objectives, financial situation and needs. Past performance does not guarantee future returns.
Chris Carlin is an Authorised Representative (No. 1235031 for financial services and No. 514748 for credit) and Master Your Money Now Pty Ltd ABN 65 627 229 681 is a Corporate Authorised Representative (No. 1265677 for financial services and No. 514747 for credit) of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523