Anti-Poverty Week - five tips to build financial freedom
Anti-Poverty Week - five tips to build financial freedom
22 October 2022
In these times of high inflation, rising interest rates and international uncertainty, even if you feel trapped and overwhelmed by your financial situation, there is hope. The Salvation Army Moneycare free financial counselling service has a range of resources as well as individual counselling available.
TIP 1: SAVING IS IMPORTANT
For many of us, saving money is really hard and doesn’t come naturally. While living on a tight budget can make saving difficult, people on small incomes can still save effectively.
Moneycare’s free ebook, You’re the Boss: Money Wisdom for Life, offers sections on money wellbeing, money management, creating new habits, setting up systems, decision-making and more. It also has a range of activities and tips to encourage you to begin the process of saving money or increase your level of saving.
TIP 2: SETTING UP SYSTEMS
A key to successful money management, systems are methods of filing, paying bills on time, creating basic money plans (budgets), saving, planning for Christmas and holidays, meal planning and more. There are many systems to help pay bills, budget and save, including automatic transfer and direct debit, Centrepay, payroll deductions, multiple (low or no fee) bank accounts, or even separate envelopes and cash.
If fun activities are important to you, you can still enjoy the security and order of systems while putting some ‘play’ time and money into your budget. Why not set aside time in your weekly calendar and budget for your favourite hobby or an unexpected coffee with a friend?
TIP 3: A RECIPE FOR SUCCESS
There are plenty of enjoyable alternatives to eating out in expensive restaurants and cafes or buying takeaway food. Why not try meeting for a picnic instead of a cafe, or have friends around for a potluck meal instead of going out for dinner? Why not replace your takeaway coffee treat with a thermos and enjoy a stroll in the park?
When it comes to family meals, if time and convenience are your concerns, why not focus on simple meal themes like ‘Taco Tuesday’ as part of a weekly plan, or make a big batch of a favourite recipe on the weekend to cover some mid-week meals?
There are over 30,000 products in most supermarkets, and that’s a lot to tempt us! Supermarkets try to entice us to spend more with their store layout, advertising and packaging. Here are some tips to reduce your supermarket spending:
• Plan your meals for at least the coming week and avoid extra trips to the supermarket.
• Shopping with a list is the most effective way to control food costs.
• Shopping on your own (or online) may help you stay focused and stick to your list.
• Supermarkets put the products that make the largest profit margin at eye level. The bargains are found high and low.
• Buying fruit and vegetables in season is cheaper. Consider joining a community garden, shopping at your local farmers’ market or buying from local farms. Imperfect fruit and vegetables may not look great, but are cheaper and taste just as good.
• To help avoid impulse buying it is better not to shop for food when you’re hungry.
TIP 4: WORKING TO DELETE DEBT
Debt can affect relationships, health, feelings of self-worth and stress levels. For peace of mind, it is important to start clearing a debt and being careful not to take on more. Debt repayment can feel overwhelming, but avoiding dealing with your debts – credit cards, personal loans, buy now pay later, utilities, fines, school fees and unpaid taxes – only compounds problems and charges.
If you’re having difficulty repaying debts, it is important to inform the organisations you owe money to about your situation. Ask if they have a hardship team and enquire about the possibility of an affordable repayment program with no – or reduced – interest.
There are laws to protect you when you sign for a loan or when you owe money, and for more information, you can contact a free Moneycare counsellor. You can also contact the independent ombudsman – usually the Australian Financial Complaints Authority (AFCA).
TIP 5: STAYING ALERT ONLINE
Shopping online can potentially save time and money while browsing store social media accounts is just harmless fun – right? Not necessarily!
Before you tap ‘add to cart’, remember that marketers, retailers and social media organisations work hard to target your shopping habits and interests. Even if you are not planning to buy anything, up pops an appealing ad on your phone, email or social media feed, matching your recent online searches.
While online shopping can be convenient it can also lead to a range of problems and dangers, including cybersecurity issues and scams, as well as impulse buying, overspending, poor-quality purchases, high interest on credit repayments, and more.
For many more tips on working towards financial freedom, Moneycare’s Be the Boss is a free series of 15 short videos and action plans to help you take control of your finances. The series is designed to help you get on top of your money for good by working out what’s important to you, what changes you need to make and how to turn good intentions into actions. Click here: https://www.salvationarmy.org.au/need-help/financial-assistance/youre-the-boss/be-the-boss/
As well as Moneycare’s free financial resources for advice on budgeting, saving and managing loans, the Salvos offer housing and homelessness support, and support for survivors of family and domestic violence.
Need help: https://www.salvationarmy.org.au/get-involved/anti-poverty-week/
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