Frozen coke bottles, chopped up credit cards and homemade Christmas gifts could be the key to keeping a balanced budget, locals learned at Inverell Pantry’s Better Budgeting seminar last week.
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“It is about discipline, very much about discipline,” financial counsellor Lynda Atkinson told a room of locals at the RSM Club on Tuesday, June 20.
She said a 600ml coke bottle could hold up to $1000 in $2 coins, and challenged the group to begin filling their own. On remaining disciplined, Mrs Atkinson recommended keeping the bottle out of sight, and out of mind whenever possible.
“Freeze it!” piped up one attendee, suggesting the move might prevent impulse buys.
The group were comfortable sharing their own stories of financial hardship and budgeting techniques.
Sonia Ford talked about the difficulties her family faced when her oldest daughter had multiple expensive surgeries for a heart condition.
“We had no access to any credit cards. I thought with five children under 12 ‘How the hell were we going to survive in this life?’” she said. A decade later, and the family are proud they still have no credit cards.
“If we can’t save for it then we don’t buy it, that’s our attitude and we have taught the kids the same thing,” she said.
“I like to play a game where it’s like cheating the system. So in my head, I tell myself ‘Well they say it’s going to cost $10,000 for a secondhand car, so I try and work out how much cheaper than that can I get it, and how can I get it without going into any debt?’”
Mrs Atkinson said different techniques would work for different people, and suggested asking a friend or family member for help if discipline is an issue.
“At the beginning of your budget, when you’re looking at the money that’s going out and the money that’s coming in, there are priorities that are going to be there,” she said.
“You’ve got to look at those essential expenses, take care of them first, and then start budgeting with what you’ve got left.”
She reminded the group that existing loan repayments were essential expenses.
“You don’t have a choice about that. There is a loan there and you have to make those repayments. That’s your car and you’re driving around in it,” she said.
Mrs Atkinson also talked about the warning signs for financial abuse and how to spot scams.
Damian Waples from NSW Trustee and Guardian spoke to the group on when a person should consider appointing power of attorney, the steps involved and the safeguards in place to prevent financial abuse. He also encouraged attendees to draw up their wills sooner rather than later.
“Sometimes on low incomes we forget about all that stuff, and yet our kids are left to pick up all the pieces,” explained Pantry manager Leonie Pearce.
Geoff Mills from Rural Finance spoke on assets and expenses, and gave advice on building a budget.
Mrs Pearce gave an overview on the services the Pantry provides. These include distributing the state governments’ Energy Accounts Payment Assistance (EAPA) scheme, which offers payment plans, rebates and other assistance to those struggling to pay their energy bills and supervising Work and Development Orders (WDO) to provide alternatives for those who can’t pay off their fines. The Pantry also offers financial counselling, client advocacy, work for the Dole opportunities and chaplaincy appointments.
Lynda Atkinson’s tips for better budgeting
- Start budgeting now – don’t wait until you’re financially ‘on your feet’.
- Write down everything you spend your money on and split it into essential and non essential expenses. Rent, loan repayments, fixed agreements (such as electricity) and education are essential.
- If your expenses exceed your income, consider what can be cut out such as cigarettes and alcohol, eating out too often or driving when you can walk.
- Set short term (less than a year), mid term (one to three years) and long term (over three years) goals. Be specific.
- Be realistic about your income, expenses and ability to save.
- Save with a friend. Share tips, enjoy cheap nights out and compete against each other to see who can save more.
- Save on clothes by checking op-shops, taking advantage of stocktake sales and ensuring anything new you buy matches at least two items already in your wardrobe.
- Use the Life Inverell Food Pantry to save on grocery costs.
- Visit www.smartmoney.gov.au to find tips on how to save money on food and reduce household costs such as water and electricity.