PERSONAL FINANCE

How to budget during a downturn

Nov 2023

Rebecca Maher, Managing Director and Co-Founder of MoneyHappy offers money-saving and career tips if you are worried about finances – whether you're working full time or looking for a new career.

5 financial tips if you’re working

1. Prepare for uncertain times

Even though you’re working now, it’s a good idea to have a plan of attack if that changes. Start by trying to save as much as possible, because when you have savings, it won’t be as earth shattering if you do lose your job.

Look at how and where you’ve spent your money over the last six months and create a budget that helps you save more.

2. Jump start your nest egg

If you’re working from home, you’re saving money on petrol, public transport, tolls, parking, clothing, coffee, lunches, after-work drinks and not going out on the weekend.

Put that money into savings, because as the world comes through the other side of this situation, there’ll be opportunities for those who have money to spend, such as on discounted travel and property.

3. Let technology do the work

Use free budgeting apps such as Pocketbook or the budgeting tools on your banking app to analyse your spending quickly.

4. Set a grocery budget and plan your meals

If you’re used to ordering takeaway or eating out, save money by setting a grocery budget and working out a meal plan for the week.

5. Restructure your bank accounts

If you’ve only ever had one bank account, consider setting up separate accounts to have more control over your spending, creating accounts for:

  • savings
  • bills
  • personal spending.

Once you go back to being able to spend more freely, you’ll be set up with good habits that will make it easier to manage your money.

4 money and career tips if you’re out of work

1. Create a battle plan for the money you can access

It’s very helpful to have a short-term cash plan to help you manage the money available to you. Try the following:

  • Make a list of all your expenses, starting with mortgage or rent, and debts.
  • Add food and other basic expenses. These are the non-negotiables that will cause you financial distress if you don't get on top of your finances.
  • Go through recent bank account statements and list other recurring expenses – work out which ones you can do without for a while, and which financial commitments you have to meet.
  • Cut back on non-essentials such as streaming services, food delivery and online shopping.
  • Work out the minimum you need to stay afloat for the next few months.

2. Find out if you can push the pause button on some financial commitments

Contact your bank and other service providers and find out if you can pause or defer payments. The good news is that during this crisis, the answer will most likely be yes.

3. Make the most of your downtime to improve your career opportunities

If you’ve lost your job, try and focus on the fact this is temporary. Update your CV, and consider upskilling through free online courses such as:

When the job market picks up, you’ll be ready to go!

4. Be prepared for the new world

Whether you’re employed or not, when the downturn is over, you’ll have had several months of going without things you previously felt you couldn’t live without.

This is a great opportunity to say goodbye to old spending habits. Reflect on how your life has changed and how much you’ve saved as a result.

Where to get help if you think you need it?

Money wories are one of the main sources of stress in Australia, and can lead to relationship problems, depression or anxiety.1 If you, or someone you know needs help and are not coping through, here are some links and numbers to contact.

As part of MetLife 360Health, eligible MetLife customers* can access Mental Health Assist, which provides access to mental health specialists for second opinions and treatment planning.

Reference

1. healthdirect.gov.au/financial-stress

 

The information provided in this blog (the Content) is general information only and is not health or medical advice. If you have a health or medical concern, please seek professional medical advice immediately. 360Health services are provided by a third party, Teladoc Health Pty Limited which is a separate and independent entity to MetLife Insurance Limited (ABN 75 004 274 882, AFSL No. 238096) (MetLife). While the Content is based on resources that MetLife believes to be well-documented, MetLife is not responsible for the accuracy of the Content, and you rely on the Content at your own risk. Each person’s condition and health circumstances are unique, and therefore the Content may not apply to you. The Content is not a substitute for professional medical advice. You should always consult your licensed health care professional for the diagnosis and treatment of any medical condition and before starting or changing your health regimen, including seeking advice regarding what drugs, diet, exercise routines, physical activities or procedures are appropriate for your particular condition and circumstances.

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