“When the going gets tough…” by Tina Zawila

Following on from Steve’s article on Redundancy last week, I thought I’d also touch on a very relevant subject in our community right now.  Right now, many employees are not being offered a redundancy package, but are instead having their wage rates and salaries reviewed downwards.  In some cases quite significant reductions are being proposed, either in rates and/or in reduced hours/overtime. 

Unfortunately this is the economic cycle we are in at the moment.  However, just because we have been there before, or because we know that we ‘had it good’ for a while, it doesn’t make the downturn any easier.

So what can you do to help yourself if you are facing a decline in your income? 

First and foremost, acknowledge the fact that many people are out of work altogether, so be grateful that you have employment at all.   Changing your thinking to one of gratitude for what you have instead of what you don’t have is a good first step.

However, let’s also be practical…

• It’s time to turn to the family budget and have a good look at what is coming in and what is going out.  Start actually tracking and recording your spending for at least a few weeks so you can then make decisions based on facts, not gut feel.  Don’t ignore the small things – they often add up to big things.  Remember - you can’t manage what you don’t measure, so don’t ignore this step! 
  
  
• Look at your debt commitments – home loan, personal/car loans, and credit cards and consider whether you need to consolidate or renegotiate terms to reduce the repayment burden even if only for a short period of time while you realign your expenses with your new income level.
  
  
• Ask for help!  Contact your financial advisor.  We are qualified and experienced and can provide practical tools and tips to help you manage your personal finances.  Simply talking about your situation with someone who understands can also lift the burden so don’t try to go it alone.

Finally, don’t bury your head in the sand.  Take action.  Get control.  When the going gets tough, the tough get going!  Call the professional team at Sothertons today on 4972 1300.  We are here to help.