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.
(If you have lost your job or had your income reduced, please refer to our section on changed job circumstances for information on income support.)
Start by building a clear picture of your income and expenses to help you understand your overall position. For example, make a list of:
You can also use our budget planning tool to help you with this.
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.
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.
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.
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.