The financial climate of the future is an uncertain and unchanging one that you need to be prepared to face. With the impact of COVID-19 being felt by many businesses and individuals, you need to be ready for the worst-case scenario.
Ensuring that you are financially in a better position to face this uncertainty can be done by you, and potentially with assistance from the government.
A handy tip for ensuring that you are prepared for the worst is if you are in possession of an emergency savings account – by depositing a regular sum of money into a high-interest savings account, you can prepare yourself for any eventuality, without depleting your actual savings.
You could implement the 50/20/30 budget rule in this instance, whereby 50% of what you earn is spent on needs (ie. rent, bills, groceries, car/transport), 30% to be spent on wants (ie. clothes, games, etc) and 20% to be saved or put towards debt repayment. In this case, you could dedicate some of the 20% towards your “for emergencies” fund to assist you with unexpected expenses.
If you find yourself in a situation where your emergency funds just won’t stretch to cover the amount you require, you can also apply for a “payday loan”, but this should be done with caution. Often they are riddled with terms and conditions that may make it difficult to pay back, and you should investigate and compare payday loans to find what might be suitable for you. You may also need to consider whether it is financially feasible for you to pay back the amount you require.
If you have for example been unable to or restricted from working during the current COVID-19 situation, you may be eligible for government assistance. The Australian government is currently providing individuals and businesses in affected areas with COVID-19 related relief support and assistance. If you are currently experiencing financial hardship as a result of the impact of COVID-19, there are a number of ways in which you can seek help. These could include:
- The COVID-19 Disaster Relief Payment (currently available for eligible individuals in NSW, Victoria & South Australia) – an emergency lump sum payment to help workers unable to earn an income due to a COVID-19 state public health order. This may involve a lockdown, hotspot or movement restrictions.
- The Pandemic Leave Disaster Payment (currently available across all states and territories for individuals) – support for individuals who are unable to leave their home for work as a result of self-isolating, currently have COVID-19, or who are caring for someone with COVID-19.
- State governments are also providing financial assistance to businesses that are experiencing a downturn in revenue and are severely being impacted as a result of the current situation, with various relief packages and grants available to small, medium and large businesses.
For more information and eligibility requirements Services Australia provides a comprehensive breakdown of conditions, eligibility and outcomes for the financial assistance.
If you are looking for more information about your super and how to make the most out of it, you can speak with me by contacting me on 0432 366 690 or booking your free consultation here.